Jet Edge sell Gulfstream G650 for $71 million to Japanese buyer

Alud Davies
By Alud Davies March 4, 2014 10:25

Jet Edge sell Gulfstream G650 for $71 million to Japanese buyer

Jet Edge have sold a pre-owned Gulfstream G650 to a Japanese company.
Back in Asia: Gulfstream displayed G650 N650PH at ABACE 2013 (Photo: Alud Davies)

Back in Asia: Gulfstream displayed the G650 (N650PH) at ABACE 2013 (Photo: Alud Davies)

Jet Edge International, has sold a G650 to a Japanese company. The Van Nuys, California charter, operator and management company will continue to operate the aircraft.

The Japanese company, believed to be Fast Retailing Co., Ltd of Yamaguci, paid $71 million for the aircraft.

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ALSO SEE: Corporate Jet Investor’s guide to the G650

The aircraft (MSN6013 registered as N650PH) was the fourth G650 to be delivered. It was ordered by Swap Shop owner Preston Henn, but was leased straight back to Gulfstream on delivery day and put up for sale. Gulfstream used it as as a demonstration aircraft for seven months.

The list price for a new G650 is $65.5 million now, with the next available slots for delivery in 2017. This means that with escalation (which is calculated from various price indices), the actual cost of an aircraft that is delivered in 2017 is likely to be more than $70 million. As a launch customer Henn will have paid around $58.5 million, making him a $12.5 million profit on the sale.

Jet Edge confirmed that the G650 is owned by a Japanese company, but would not say who the buyer is. In an email to Corporate Jet Investor, Fast Retailing Co., Ltd says: “We cannot confirm it. Sorry. We don’t comment anything on the issue of corporate jets, which is our company policy”.

Jet Edge will manage the aircraft on behalf of the new owners, and will have access to the aircraft for the charter market in both Japan and the US. The jet will be jointly based at Van Nuys, and Tokyo’s Haneda International Airport.

Gulfstream is keen to discourage speculators so G650 so buyers are not allowed to sell aircraft before they are delivered. This is the third G650 to trade publicly. The first was sold by Freestream Aircraft for $72 million and second by The Jet Business to a Japanese investment company for moreĀ  $7o million.

“Acquiring a G650 is very difficult due to the limited inventory available and extraordinary demand worldwide. We are proud to accomplish the sale of one of only three of these jets ever to be sold on the open market,” says Bill Papariella, president of Jet Edge International. “The G650 transaction continues to solidify Jet Edge as one of the leading sales, acquirers, and operators of luxury large cabin aircraft in the industry.”

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Corporate Jet Investor says: Our 2014 Aircraft of The Year continues to be the hottest pre-owned aircraft available and it is impressive that the first three to trade have all gone for more than $70 million. However, although the list price is $65.5 million it is worth remembering that if you order a new one today it will still cost you more than $70 million when you take delivery due to escalation. Jet Edge’s deal now means that Japan has five G650s or roughly 10% of all the G650s flying today. This is well above Japan’s share of the total business jet fleet.

Alud Davies
By Alud Davies March 4, 2014 10:25

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