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Big Profits in Gulfstream G650 Flipping

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Key Takeaways:

  • Many new Gulfstream G650 owners are quickly selling their jets for significant profits shortly after taking delivery, with examples including a $70 million sale netting a $10 million profit and Bernie Ecclestone's $72 million sale.
  • This "flipping" trend is fueled by high demand and lengthy production backlogs for new G650s, causing buyers in growing economic regions to pay a premium to avoid long waits.
  • Manufacturers like Gulfstream discourage this practice and include "non-assignability" clauses in contracts to prevent the sale of delivery positions, yet owners often bypass these by taking delivery before reselling.
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A London business jet broker reports it has sold a Gulfstream G650 for an owner who took delivery in July. The jet went to a Japanese real estate firm for $70 million, netting a profit of $10 million, according to The Jet Business (despite the fact that list price on the G650 is $64.5 million). In September, billionaire Bernie Ecclestone, CEO of Formula 1 auto racing, sold his G650 to a Japanese businessman for $72 million.

It is not uncommon for new owners to flip a business jet shortly after taking delivery, though the practice is frowned upon by manufacturers for a variety of reasons. For example, when the original order holder has a high profile, as in the case of Ecclestone, the quick re-sale looks on the surface like a deal gone sour.

Mark Phelps

Mark Phelps is a senior editor at AVweb. He is an instrument rated private pilot and former owner of a Grumman American AA1B and a V-tail Bonanza.

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