What could NJA order super-mid

[gutshotdraw]

The only thing I DO know, is that the G-280 will NOT be the new NJA super mid-size. Gulfstream was asked for a proposal. They DECLINED to participate.

I looked at or walked through all the contenders last week at NBAA. My rating:

Falcon 2000S
CL-300
Legacy 500 (It was only a mock-up)

 

[ozpilot]

Just wondering, whose buying shares in these airplanes? What's the incentive for an "antiquated" X owner to fork over the capital to buy a new "TEN"?

That's a very good question. A couple of years ago I took an owner out to dinner while we were waiting for a recovery flight. He asked me the same thing. I didn't have an answer.


Maybe market the TEN as a new fleet?

 

[jtf]

Probably the biggest reason they will buy into new airframes is that the company will stop selling older jets when they get rid of them- so if you want to keep flying in the X, eventually you will most likely have to buy into a Ten, or go to a competitor. The fleets are all getting older and they are all going to be sold eventually.

 

[KiddDynomite]

The only reason they need new airframes is because the depreciation on the existing ones is running out. The biggest reason any of the fractionals sold airplanes was that under King George II there was a fifty percent depreciation in the first year, so they essentially bought their share in a new airplane for fifty cents on the dollar. Those benefits are no longer available under the muslim. Standard depreciation is back but new airframes are needed to get any tax break.

 

[BoilerUP]

Currently aircraft owners can get 100% first-year depreciation if an airframe is bought AND enters service in 2011.

 

[KiddDynomite]

Currently aircraft owners can get 100% first-year depreciation if an airframe is bought AND enters service in 2011.

Thanks for the correction but then that leads to the next question. Why aren't we selling new airplanes like they're going out of style?

 

[BoilerUP]

Thanks for the correction but then that leads to the next question. Why aren't we selling new airplanes like they're going out of style?

Individuals and corporations who need depreciation and have cash are buying new airplanes in situations when same-year deliveries are becoming available. I doubt many manufacturers have a bunch of white tails outside their factories unlike 2009 for this very reason.

For everybody else, there are issues like making sure you can afford the plane, arranging financing, and probably the big one - accepting a large loss in value on the plane you already own, if you can in fact sell it, to buy a new plane.

 

[208starcheck]

That's a very good question. A couple of years ago I took an owner out to dinner while we were waiting for a recovery flight. He asked me the same thing. I didn't have an answer.


Maybe market the TEN as a new fleet?

Why buy a new car when the current car is only 5 years old and runs great? Because it's new.

 

[ozpilot]

Why buy a new car when the current car is only 5 years old and runs great? Because it's new.

That's true, but if you buy new and there are still 70 used X's in the fleet, what are the chances that your new TEN will be available for your trip?

 

[jtf]

The odds would be low, but as the company sells away the older airframes, the customers won't really have the choice to buy used unless they go elsewhere. That is a risk that NJA has to take eventually since the older airframes need to be continuously removed before they are just too old. I'm sure some will leave the program, but the business must move forward eventually and there will be at least some who like that new plane smell.