BUY, CARD OR FRACTIONAL?
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There is a lot of economic validity to using a rented long range airplane or airline for the long hauls. So, this becomes a preference - if you want an older, big iron airplane that can do everything and can afford it, buy the big iron. The increase in fuel cost is a lot less than interest / opportunity cost in tying up $10+million.
Whether you buy mid size or large cabin, my vote is to tie up less capital on the front end and buy an airplane that has solid maintenance history and is good in its maintenance cycle, i.e. Doesn't have any imminent major inspections. You also, theoretically, have less depreciation risk. Say a $6m airplane loses half it value, you are down $3m. If a $16m airplane loses half it's value, you are down $8m. You can also buy a lot of fuel and pay for a lot of maintenance with that $5m difference.
Dispatch reliability of well maintained F900, CL604 and GIV, and G2/G3 for that matter can be excellent. I know of several G4's operating near 100% dispatch reliability over the past several years and they operate a lot of hours and cycles.
Whether you buy mid size or large cabin, my vote is to tie up less capital on the front end and buy an airplane that has solid maintenance history and is good in its maintenance cycle, i.e. Doesn't have any imminent major inspections. You also, theoretically, have less depreciation risk. Say a $6m airplane loses half it value, you are down $3m. If a $16m airplane loses half it's value, you are down $8m. You can also buy a lot of fuel and pay for a lot of maintenance with that $5m difference.
Dispatch reliability of well maintained F900, CL604 and GIV, and G2/G3 for that matter can be excellent. I know of several G4's operating near 100% dispatch reliability over the past several years and they operate a lot of hours and cycles.
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Gbruton-
Your comments are well taken. If I came across as preferring old, big iron with the fear of it falling out of the sky, I did not get my thoughts across properly.
I haven't looked back as far as the late 90's. My initial searches have focused more on MY 2000+. The fuel issue came to me when I read an article saying that the F2000LX was between 30-75% more efficient than older jets. That seemed to be a significant $$ savings. The article may seem vague, with too many other variables, but it started me wondering whether THAT MUCH of a difference would make it worthwhile, over my stated 10 year ownership period, to purchase a mid-life a/c or spend double the cost for new. Costs are costs, and fuel is only one component. Would I prefer a 2002 jet with the fuel flow of a sippy cup? Sure, but I realize that, as costs go, fuel should not be my primary concern.
The Teterboro option is a good one, and one that I had not yet thought of. My biggest issue has been that most of the lighter jets feel a bit cramped for me. Maybe a Sovereign would be a happy medium.
I'm sure that kicking the tires on a number of brands/sizes will sort this out.
Thanks all.
Your comments are well taken. If I came across as preferring old, big iron with the fear of it falling out of the sky, I did not get my thoughts across properly.
I haven't looked back as far as the late 90's. My initial searches have focused more on MY 2000+. The fuel issue came to me when I read an article saying that the F2000LX was between 30-75% more efficient than older jets. That seemed to be a significant $$ savings. The article may seem vague, with too many other variables, but it started me wondering whether THAT MUCH of a difference would make it worthwhile, over my stated 10 year ownership period, to purchase a mid-life a/c or spend double the cost for new. Costs are costs, and fuel is only one component. Would I prefer a 2002 jet with the fuel flow of a sippy cup? Sure, but I realize that, as costs go, fuel should not be my primary concern.
The Teterboro option is a good one, and one that I had not yet thought of. My biggest issue has been that most of the lighter jets feel a bit cramped for me. Maybe a Sovereign would be a happy medium.
I'm sure that kicking the tires on a number of brands/sizes will sort this out.
Thanks all.
Last edited by NastyPirate; 23rd Feb 2014 at 19:59.
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NastyPirate,
As principal over 30 years, including 15 in the new aircraft sales business, I have turned this one inside out more than a few times.
low capital costs older airframe against later buys a lot of fuel and extra maintenance if indeed it is needed. Last calculation I made on similar hours to yourself suggested you would have to spend more than 20 years before you broke even just on the fuel. Go figure.
GIVSP with all the latest ASC mods will come in with change. One stop pretty anywhere and Teterboro management would be the go.
Gulfstream service and support is absolutely amazing and gobsmacked even an old cynic like me whose has owned and dealt with all the rest.
i have recently completed another Gulfstream exercise and if you deal with the right people (exclude pilots) it will be as painless and almost as risk free as new with warranty.
There is a system I use that sorts out the "right" aircraft from the available and my friends in the business know almost every one by its first name.
pm me if you want some details.
As principal over 30 years, including 15 in the new aircraft sales business, I have turned this one inside out more than a few times.
low capital costs older airframe against later buys a lot of fuel and extra maintenance if indeed it is needed. Last calculation I made on similar hours to yourself suggested you would have to spend more than 20 years before you broke even just on the fuel. Go figure.
GIVSP with all the latest ASC mods will come in with change. One stop pretty anywhere and Teterboro management would be the go.
Gulfstream service and support is absolutely amazing and gobsmacked even an old cynic like me whose has owned and dealt with all the rest.
i have recently completed another Gulfstream exercise and if you deal with the right people (exclude pilots) it will be as painless and almost as risk free as new with warranty.
There is a system I use that sorts out the "right" aircraft from the available and my friends in the business know almost every one by its first name.
pm me if you want some details.
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the New Old
There are a few operators in South Florida that have managed principals very well in the last 25 years and have now also expanded into the Latin American business. Their local knowledge and language skills are to a major advantage for your operation.
Shop around and you'll see that it doesn't have to be a far away from your bedside show to have the satisfaction of management and operation all the way up to NY of CA.
Shop around and you'll see that it doesn't have to be a far away from your bedside show to have the satisfaction of management and operation all the way up to NY of CA.
