Gulfstream G550 vs Bombardier Global 6500 vs G600

Over the following paragraphs we’ll consider key productivity parameters for the Gulfstream G550, Bombardier Global 6500 and Gulfstream G600 (including payload, range, speed, and cabin size) to establish which aircraft provides value, and to whom, in the Ultra-Long-Range and Large Cabin business jet market.

How much more performance do the newer business jets offer over the out-of-production Gulfstream G550? And why has there been such a large increase in used sale transactions for the Gulfstream G550? It is hoped that the following jet comparison will help clarify.

Gulfstream G550

The Gulfstream G550 traces its roots to the 6,500nm range Gulfstream GV which was the first Ultra-Long-Range & Large Cabin business jet produced. GV deliveries began in 1995.

The aircraft proved a hit with the market, and two new models followed, including the Gulfstream G550 in 2003 and the G500 in 2004. For several years, the G550 was Gulfstream’s flagship model until the even longer-range G650 was introduced. Gulfstream G550 production ended in 2021, but not before Gulfstream had delivered 608 units around the world. Just two G550s had been retired at the time of writing. 

By continent, North America housed the largest G550 fleet percentage (70%), followed by Asia (14%) and Europe (11%), accounting for a combined total of 95% of the world’s fleet, per JETNET data.

Bombardier Global 6500

The Bombardier Global 6500 is a relatively new member of the Global family of business jets, having received FAA certification in 2019. Offering a range of 6,636 nautical miles, and providing a high level of cabin comfort, the aircraft features a re-designed wing and new Rolls-Royce Pearl 15 engines to achieve the range and a top speed of Mach 0.9.

The cockpit on the Global 6500 aircraft is the first in the industry to offer a true combined vision system, seamlessly merging enhanced and synthetic vision images in a single view on the head-up display.

There were 38 wholly owned Bombardier Global 6500 business jets in operation, and two in fractional ownership, giving a total of 40 jets in operation worldwide at the time of writing. By continent, North America had the largest fleet share (50%), followed by Europe (26%) and Asia (21%), for a combined total of 97%, per JETNET data.

Gulfstream G600

Like the Global 6500, the Gulfstream G600 is also fairly new to market, having entered service in 2019, replacing the Gulfstream G550. Powered by a pair of Pratt & Whitney PW815GA engines the G600 can reach a maximum speed of Mach 0.925.

The cockpit is equipped with the intelligence-by-wire flight system that provides highly calibrated flight controls, auto throttles and autobrakes to ensure peak engine performance and smoother, safer landings. Meanwhile, the aircraft's EVS is linked to a head-up display.

As of this writing 68 Gulfstream G600 business jets were wholly owned, and one was in shared ownership, making a total of 69 jets in operation worldwide. According to JETNET data, North America had the largest fleet percentage (80%), followed by Europe (11%) and Asia (5%).

Payload Comparison

When comparing business jets, an important area for potential operators to focus on is payload capability, and especially the ‘Available Payload with Maximum Fuel’. Table A shows the Bombardier Global 6500’s ‘Available Payload with Maximum Fuel’ to be 2,805lbs, which is greater than the 2,600lbs offered by the Gulfstream G600 and the 1,706lbs offered by the Gulfstream G550.

Table A: Gulfstream G550 vs Bombardier Global 6500 vs G600 Payload Comparison

Cabin Comparison

As shown in Chart A, the cabin heights are 6.2ft for the G600 and Global 6500, and 6.0ft for the G550. Meanwhile the Bombardier Global 6500 cabin (7.9ft) is wider than the Gulfstream G600 (7.6ft) and the Gulfstream G550 (7.0ft).

The Gulfstream G600 provides more cabin length (51.3ft) than the Gulfstream G550 (50.1ft) and the Global 6500 (48.3ft). However, it provides less overall cabin volume (1,884cu.ft.) than the Global 6500 (2,002cu.ft.).

The Gulfstream G550, meanwhile, has the lowest cabin volume at 1,812cu.ft. The stipulated cabin volumes cover the net main seating area, but not the lavatory. Configured with executive seating, the Gulfstream G600 and Gulfstream G550 provide room for sixteen passengers and four crew. The Bombardier Global 6500 offers thirteen seats with four crew.

Within this field of study, the Gulfstream G550 provides the least internal luggage volume (170cu.ft.), versus the Gulfstream G600 (175cu.ft.) and the Global 6500 (195cu.ft).

Chart A: Gulfstream G550 vs Bombardier Global 6500 vs G600 Cabin Comparison

Range Comparison

Using Wichita, Kansas, as the start point, Chart B shows the Gulfstream G550 has a range of 6,708nm with eight passengers and available fuel. The range of the Bombardier Global 6500 and Gulfstream G600 are virtually identical (6,636nm vs 6,630nm).

Note: For business jets, ‘Eight Pax Range’ represents the maximum IFR range of the aircraft at long range cruise. The NBAA IFR fuel reserve calculation is for a 200nm alternate. This range does not include winds aloft or any other weather-related obstacles.

Chart B: Gulfstream G550 vs Bombardier Global 6500 vs G600 Range Comparison

Powerplant Details

The Gulfstream G550 utilizes two Rolls-Royce BR700-710C4-11 engines, producing 15,385lbst each, and burning 431 gallons of fuel/hour. By comparison, the Gulfstream G600 uses a pair of Pratt & Whitney PW815GA engines, producing 15,680lbst each, and burning 463 gallons of fuel/hour.

The Bombardier Global 6500 has two Rolls-Royce BR700-710D5-21 (Pearl 15) engines producing 15,125lbst each, and burning 456 gallons of fuel/hour.

Cost per Mile Comparison

Chart C details the ‘Cost per Mile’, comparing the three business jets, and factoring direct costs and with all aircraft flying a 6,000nm mission with a 1,600lbs payload.

The Gulfstream G550 ($9.34) has a lower variable cost per nautical mile. By comparison, the cost for the Bombardier Global 6500 is $9.43, and the Gulfstream G600 is $9.61. Essentially, the three jets in this field have very similar costs per mile.

Chart C: Gulfstream G550 vs Bombardier Global 6500 vs G600 Cost Per Mile Comparison

Variable Cost Comparison

The ‘Variable Cost’, illustrated in Chart D, is defined as the estimated cost of fuel, maintenance labor, scheduled parts, and miscellaneous trip expenses (e.g., hangar, crew and catering).

These costs DO NOT represent a direct source into every flight department and their trip support expenses. For comparative purposes, the costs presented are the relative differences, not the actual differences since these may vary from one flight department to another.

The Gulfstream G550 ($3,115) has a lowest variable cost compared to the Bombardier Global 6500 ($3,240) and the Gulfstream G600 ($3,411).

Chart D: Gulfstream G550 vs Bombardier Global 6500 vs G600 Variable Cost Comparison

Aircraft Comparison Table

Table B contains the 2021 prices (per B&CA) for the Gulfstream G550, Bombardier Global 6500 and the Gulfstream G600 ($54.5m, $56m and $58.5m, respectively). Also, listed are the long-range cruise speed and range numbers (per B&CA), while the number of aircraft, the percentage for sale, and average sold are from JETNET.

The average number of new/used transactions (units sold) per month over the previous 12 months were 12 for the G550 and two for the Global 6500 and G600.

Table B: Gulfstream G550 vs Bombardier Global 6500 vs G600 Market Comparison

Maximum Scheduled Maintenance Equity

Chart E, F and G display the Gulfstream G550, Bombardier Global 6500 and Gulfstream G600 respectively. They depict (and project) the Maximum Maintenance Equity each jet has available, based on its age.

The Maximum Maintenance Equity figure for an aircraft is achieved the day it comes off the production line (since it had not accumulated any utilization toward any maintenance events). The percent of the Maximum Maintenance Equity that an average aircraft will have available, based on its age, assumes:

• Average annual utilization of 420 flight hours for the Gulfstream G550; 470 flight hours for the Global 6500; and 425 flight hours for the Gulfstream G600; and
• All maintenance is completed when due.

The Gulfstream G550 shows the highest average Maximum Maintenance Equity ($12.1m). In comparison, the Bombardier Global 6500 shows an average Maximum Maintenance Equity of $7.5m, and the Gulfstream G600’s Maximum Maintenance Equity is $9.77m.

Note, though, that the Global 6500 is projected to show a large average Maximum Maintenance Equity increase between years 14 and 15.

Market Overview

The availability of used business jet inventory is a daily moving target. In the 12 months ending March 2022, there had been 136 preowned sales of Gulfstream G550s, according to JETNET. By comparison, in the twelve months ending March 2021 there were 74. The five-year average was 65.

While transactions involving the G550 were particularly high at the time of writing, this jet is clearly traditionally very active within the pre-owned market, proving popular with buyers.

On April 12, 2022, there were four Gulfstream G550s for sale on the pre-owned market. One had a sale pending, while two others had asking prices of $28m and $29m, respectively. All four were 2013-models or older, and all had been on the market for fewer than 80 days.

In addition, there was one 2021-model Bombardier Global 6500 for sale that invited offers, and three Gulfstream G600s, one of which had an asking price of $54.75m. All of them had been on the market for less than 60 days.

While each aircraft serial number is unique, the Airframe Total Time (AFTT) and age/condition will cause great variation in the price of a specific aircraft – even between two aircraft from the same year of manufacture.

The final negotiated price remains to be decided between the seller and buyer before the sale of an aircraft is completed.

Depreciation Schedule

Aircraft that are owned and operated by businesses are often depreciable for income tax purposes under the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, taxpayers can use accelerated depreciation of assets by taking a greater percentage of the deductions during the first few years of the applicable recovery period.

In certain cases, aircraft may not qualify under the MACRS system and must be depreciated under the less favorable

Alternative Depreciation System (ADS), based on a straight-line method, meaning that equal deductions are taken during each year of the applicable recovery period. In most cases, recovery periods under ADS are longer than recovery periods available under MACRS.

There is a variety of factors that taxpayers must consider in determining if an aircraft may be depreciated, and, if so, the correct depreciation method and recovery period that should be utilized. For example, aircraft used in charter service (i.e. Part 135) are normally depreciated under MACRS over a seven-year recovery period, or under ADS using a twelve-year recovery period.

Aircraft used for qualified business purposes, such as Part 91 business use flights, are generally depreciated under MACRS over a period of five years or by using ADS with a seven-year recovery period. There are certain uses of the aircraft, such as non-business flights, that may have an impact on the allowable depreciation deduction available in any given year.

The US enacted the 2017 Tax Cuts & Jobs Act into law on December 22, 2017. Under the Act, taxpayers may be able to deduct up to 100% of the cost of a new or pre-owned aircraft purchased and placed in service before January 1, 2023.

This 100% expensing provision is a huge bonus for aircraft owners and operators. After December 31, 2022, the Act decreases the percentage available each year by 20% to depreciate qualified business jets until December 31, 2026.

Productivity Comparison

The points in Chart H are centered on the same aircraft. Pricing used in the horizontal axis is as published in B&CA. The productivity index requires further discussion since factors used can be somewhat arbitrary. Productivity can be defined (and it is here) as the multiple of three factors:

1. Eight Passenger Range (nm) with available fuel
2. The long-range cruise speed flown to achieve that range
3. The cabin volume available for passengers and amenities

Chart H Gulfstream G550 vs Bombardier Global 6500 vs G600 Productivity Comparison

Others may choose different parameters, but serious business aircraft buyers are usually impressed with price, range, speed, and cabin size.

The pre-owned Gulfstream G550 has the lowest price (substantially lower as price depreciation takes effect), greater range, lower fuel consumption, and a lower variable cost per hour. However, its cabin is the smallest of the field, and it has a lower maximum cruise speed.

The Bombardier Global 6500 offers the same high cruise speed and range as the Gulfstream G600, while the Global 6500’s ‘Available Payload with Maximum Fuel’ is higher than that of the Gulfstream G600 and the G550.

While budget will play a significant part in the decision of some buyers, others will consider the latest, most sophisticated cockpit and cabin technology to be the key factor in determining which jet to purchase – with Bombardier and Gulfstream selecting some impressive equipment aboard the Global 6500 and G600, respectively. These are designed to enhance passenger comfort, and reduce pilot workload.

Prospective buyers of one of these jets would have to weigh the capabilities of each very carefully against their specific mission need, and other priorities to determine which one is the best fit for their flight operations.

Within these paragraphs we have touched upon several of the attributes that business jet operators value, although there are other qualities, such as airport performance, terminal area performance and time-to-climb that might factor in a buying decision.

Ultimately, there is plenty for a prospective buyer to consider when deciding which performance criteria is better suited to them in an aircraft. Ultimately, the Gulfstream G600, Bombardier Global 6500, and Gulfstream G550 pre-owned business jet all offer great value in the market today.

Find Gulfstream Large Jets and Bombardier Global Jets for sale on AvBuyer.