Over the following paragraphs we’ll consider key productivity parameters for the Hawker 800XP and Bombardier Learjet 60 Mid-Size private jets (including payload, range, speed, and cabin size).
We’ll aim to establish which aircraft provides the better value in the pre-owned market. One question we’ll consider is why there has been such a large increase in pre-owned transactions for the Hawker 800XP recently. It’s hoped that the following jet comparison will help clarify.
Hawker 800XP
The Hawker 800XP is a derivative of the de Havilland/Hawker Siddeley/British Aerospace 125 which was first built in 1962. The Hawker 125 evolved into the Series 400 to 800, and was produced until 1993 when Raytheon purchased the program and renamed the Series 800 the Hawker 800.
In 1995 the upgraded Hawker 800XP entered service, featuring uprated Honeywell TFE-731-5BR-1H engines, enhanced aerodynamics, increased weight, and system upgrades.
The Hawker 800XP was manufactured between 1995 and 2005, and the number of units built in that timeframe totalled 426 aircraft. At the time of writing, 390 remained in service. By continent, North America had the largest fleet percentage at 76%, followed by Asia (9%) and Europe (6%), for a combined total of 91%, per JETNET data.
Bombardier Learjet 60
The Bombardier Learjet 60 was developed from the Learjet model 55C, offering additional length and more fuel-efficient Pratt & Whitney PW305A engines, and numerous other aerodynamic refinements to its wing and fuselage. The result was increased gross take-off weight, fuel capacity, speed, and range.
As many as 276 Learjet 60s remained in operation worldwide at the time of writing, with 40 having been retired. According to JETNET, North America had the largest fleet percentage (79%), followed by South America (10%) and Europe (5%), accounting for 94% of the world’s fleet.
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 Hawker 800XP ‘Available Payload with Maximum Fuel’ to be 1,875lbs, which is 807lbs more than that offered by the Learjet 60 (1,068lbs).
Table A: Hawker 800XP vs Bombardier Learjet 60 Payload Comparison
Cabin Comparison
As shown in Chart A, the Hawker 800XP has slightly more cabin height and width than the Learjet 60. It also has a longer cabin (21.3ft) than the Learjet 60 (17.67ft) while providing more overall cabin volume (551cu.ft) than the Learjet 60 (447cu.ft.).
Configured with executive seating, the Hawker 800XP provides room for eight seats with two crew. The Learjet 60, meantime, provides room for six seats with two crew in executive seating.
The Hawker 800XP provides more internal luggage volume (48 cu.ft) than the Learjet 60 (31 cu.ft), but the Learjet 60 offers 24cu.ft of external luggage space (the Hawker 800XP provides none).
Chart A: Hawker 800XP vs Bombardier Learjet 60 Cabin Comparison
Range Comparison
Using Wichita, Kansas, as the start point, Chart B shows the Hawker 800XP has a range of 2,540nm carrying four passengers and available fuel. By comparison, the Learjet 60 offers a shorter range of 2,310nm carrying the same payload.
Note: For business jets, ‘Four 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: Hawker 800XP vs Bombardier Learjet 60 Range Comparison
Powerplant Details
The Hawker 800XP has two Honeywell TFE731-5BR engines, each producing 4,660lbs thrust, and burning 281 gallons of fuel per hour.
By comparison, the Bombardier Learjet 60 has two Pratt & Whitney Canada PW305A engines, each providing 4,600lbs thrust, and with a lower fuel burn at 231gal/hr.
Cost per Mile Comparison
Chart C details ‘Cost per Mile’ for the two jets, factoring direct costs and with each aircraft flying a 1,000nm mission with an 800lbs (four passengers) payload. The Hawker 800XP ($5.86/nm) has a higher variable cost compared to the Learjet 60 ($4.97/nm).
Chart C: Hawker 800XP vs Bombardier Learjet 60 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 Hawker 800XP, at $2,201/hr., has a higher variable cost compared to the Learjet 60 ($1,851/hr.) – a difference of $350 (15.9%).
Chart D: Hawker 800XP vs Bombardier Learjet 60 Variable Cost Comparison
Market Comparison Table
Table B includes the pre-owned price for a 2003 model Hawker 800XP and Bombardier Learjet 60 (per Aircraft Bluebook), and shows a difference of $700k in average retail price between the two jets.
Also, listed are the long-range cruise and range numbers (per B&CA), while the number of aircraft in-operation, the percent for sale, and average sold per month (over the last twelve months) are from JETNET.
Note, the average number of used transactions per month over the previous 12 months, as of this writing, was eight for the Hawker 800XP and six for the Learjet 60.
Table B: Hawker 800XP vs Bombardier Learjet 60 Market Comparison
Maximum Scheduled Maintenance Equity
Charts Eand F display the Hawker 800XP and Learjet 60, respectively. They depict (and project) the Maximum Maintenance Equity each jet has available based on its age.
- The Maximum Maintenance Equity figure was achieved the day an aircraft came 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 350 flight hours for the Hawker 800XP hours, and 400 flight hours for the Learjet 60; and
- All maintenance is completed when due.
The Hawker 800XP shows the higher average maximum maintenance equity ($2.571m) compared to the Learjet 60 ($1.543m). Note, though, the Hawker 800XP shows a large increase in average maintenance equity between Year 24 and 25.
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 favourable 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.
Table C depicts an example of using the MACRS schedule for a 2003-model Hawker 800XP in private (Part 91) and charter (Part 135) operations over five- and seven-year periods. The price is as published by Aircraft Bluebook at the time of writing.
Table C: Hawker 800XP MACRS Example
Table D depicts an example of using the MACRS schedule for a 2003-modelLearjet 60 in private (Part 91) and charter (Part 135) operations over five- and seven-year periods, per Aircraft Bluebook (Spring 2022).
Table D: Bombardier Learjet 60 MACRS Example
Used Aircraft Retail Sale Transaction Trends
Currently, availability of used business jet inventory is a daily moving target. Comparing the 12 months ending March 2022, there were 98 USED retail sale transactions for the Hawker 800XP. In March 2021 there were 74, and the five-year average was 81.
Where did the increased demand come from in 2021? With supply of newer jets on the pre-owned market evaporating due to Covid-generated demand, buyers have been turning to reliable older models available for sale, of which the Hawker 800XP is definitely one. We believe this answers the question of the additional demand.
As of May 9, 2022, there were ten Hawker 800XP units for sale, one of which had a sale pending. Three had an asking price, ranging between $1.195m and $3.75m.
By comparison, there were 17 Bombardier Learjet 60s for sale, three of which had sales pending, and five having an asking price ranging between $2.25m and $3.5m.
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.
Productivity Comparison
The points in Chart G are centered on the same aircraft. Pricing used in the horizontal axis is as published in Aircraft Bluebook. 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. Four 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
Others may choose different parameters, but serious business aircraft buyers are usually impressed with price, range, speed, and cabin size.
Chart G: Hawker 800XP vs Bombardier Learjet 60 Productivity Comparison
The Hawker 800XP has the higher average retail price, and higher variable costs per hour (with higher fuel consumption), than the Learjet 60, but it also has a larger cabin volume, higher ‘Available Payload with Maximum Fuel’ and slightly longer range. Other areas for comparison show the Hawker 800XP to have a slower long-range cruise speed, and a lower certified flight ceiling (41,000ft) compared to the Learjet 60 (51,000ft).
Prospective buyers of one of these pre-owned Mid-Size Jets would have to weigh the capabilities of each very carefully against their specific mission need to determine which one is the best fit for their flight operations and budget.
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’s plenty for a prospective buyer to consider when deciding which performance criteria is better suited to them in an aircraft. These two business jets still offer great value in the market today.
Find Hawker Mid-Size Jets and Bombardier Lear 60 Jets for sale on AvBuyer.
