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Global G5500 / G6500 Surprises Market But G5000 / G6000 Values May Suffer

June 11, 2018

The determination of residual values depends to some extent on the arrival of new types into the market but Bombardier and Rolls-Royce have been sufficiently discrete as to spring a surprise at EBACE with the development of two new aircraft – due for service entry within only eighteen months.

The EBACE show actually saw Bombardier fly in a test Global 6500 that set the scene for a significant shift in the product line up in the near term. Bombardier has been test flying the aircraft since the first quarter of this year. The two aircraft feature newly profiled wings compared to the existing Global 5000 and 6000. Combined with the new Rolls-Royce Pearl engines which contribute to a 13 percent lower fuel burn, the G5500 (list price of $46 million) will be able to fly 5,700 nautical miles and the G6500 (list price $56 million) 6,600 nautical miles. Both aircraft will have new avionics and interiors and will incorporate changes being incorporated into the Global 7000 which is now renamed the Global 7500. The two new aircraft will compete with the Gulfstream G500 and G600 aircraft.

The existing Global 5000 and 6000 aircraft have been in service for a number of years and have list prices that are some $5 million higher than the new G5500 and G6500 which raises the question of whether values of the outgoing models will suffer. When Embraer introduced the Legacy 650E at a 20 percent lower price than the 650, values of the latter suffered a virtual collapse.

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