Boeing Business Jets nabs seven new orders in 2007

EBACE Convention News » 2007
May 21, 2007, 6:16 PM

Boeing Business Jets yesterday announced seven new orders since January–for six BBJs and one executive/VIP version of the 787-9 Dreamliner–valued at $478 million at current list prices.

“We continue to see incredible demand,” said BBJ president Steven Hill, adding that Boeing is poised for another “phenomenal year.”

Since last year’s EBACE, Boeing Business Jets (Booth No. 7506) has taken orders for 27 aircraft including 12 BBJs, two BBJ2s, three BBJ3s, executive/VIP versions of six 787s and four 747-8s. And that total does not include two aircraft purchased by customers directly from leasing companies.

According to Boeing, private individuals comprise the bulk of sales at 44 percent, followed closely by government heads of state at 36 percent. The remaining customer segments are divided evenly among corporate customers and charter operators.

Hill said he remains optimistic about the future market for BBJs, pointing out that used aircraft sales records show that the long-term average value of a pre-owned BBJ is about 108 percent of the original price for a typically equipped airplane.
“Brand new BBJs are in high demand and short supply and that’s been driving its residual value,” explained Hill.

“In short supply” is probably Hill being modest. At this point, the next available slot for a new BBJ of any type is mid-2011. The first available slot for an executive/VIP version of the 747-8 is in 2012 and the 787 is sold out well into 2015.

In the last 12 months, said Hill, seven pre-owned BBJs have sold at a rather eye-popping average price of approximately 120 percent of the original price (typically equipped).

According to Bryan Comstock, president of Long Beach, California-based broker Jeteffect, in mid-May there were four used BBJs on the market and one owner was asking $69.9 million for his airplane, a low-time example with about 2,900 hours on the airframe and fewer than 900 cycles. That would be roughly $15 million more than the airplane cost originally, including the price of the interior.

While this suggests, as Hill said, a high residual value, there are other factors driving that market.

FILED UNDER: 
Share this...

Please Register

In order to leave comments you will now need to be a registered user. This change in policy is to protect our site from an increased number of spam comments. Additionally, in the near future you will be able to better manage your AIN subscriptions via this registration system. If you already have an account, click here to log in. Otherwise, click here to register.

 
X