The Gulfstream G700 represents the latest in ultra-long-range business jets, designed to cater to the demands of executives seeking comfort, speed, and efficiency. Competing in the same high-end market is the Bombardier Global 7500, a jet that has set new standards for range and luxury since its entry into service in 2018. Both aircraft offer exceptional capabilities, including impressive range, cabin comfort, and performance. However, when comparing the two, subtle differences in factors like payload capacity, operating costs, and design features set them apart. Ultimately, the Gulfstream G700, as a newer entrant to the market, provides a fresh perspective on the future of private aviation.
These two jets provide the basis for today’s Ultra-Long-Range business jet segment, and will be joined by other models that are currently undergoing development and certification. For now, though, how do the Global 7500 and G700 square up on the market? We’ll explore over the following paragraphs…
Bombardier Global 7500
The Global 7500 was originally launched as a clean-sheet design by Bombardier (initially as the Global 7000) back in October 2010, and it eventually entered service towards the end of 2018. Incorporating a pair of GE Passport 20-19BB1A engines, the Global 7500 pushed the upper limits of purpose-built business jet non-stop range into entirely new territory while also offering exceptional speed capability. The Bombardier Vision system is installed on the flight deck.
Demonstrating the potential and interest in this market sector, by the time the Global 7500 entered service, Bombardier had already received orders for 100 units, and as of the time of writing had delivered almost 200.
Specifically, there were 194 Bombardier Global 7500 business jets operating worldwide, with 174 being wholly owned, four in shared ownership arrangements, and a further 16 units enrolled in fractional ownership fleets. By continent, North America had the largest fleet percentage (42%), followed by Europe (33%) and then Asia (16%).
Gulfstream G700
Also recognizing the potential for the Ultra-Long-Range jet segment, Gulfstream announced its G700 in October 2019 and said that the launch customer would be Qatar Executive in 2022. The actual first delivery to Qatar Executive came in 2024.
Powered by a pair of Rolls-Royce Pearl 700 engines, the fly-by-wire G700 is a 10-foot stretched derivative of the G650, with which it also shares the same nose and wing design. Meanwhile, the jet utilizes the Symmetry flight deck employed in the G500/G600 cockpit, including the active- control sidesticks.
As of this writing there were 17 Gulfstream G700s in operation worldwide all of which were wholly owned. Asia and the Middle East boasted the largest fleet percentage (36%), followed by North America (29%), then Europe (14%).
Payload Comparison
When comparing business jets, it is important for potential operators to focus on the payload capability, and especially the ‘Available Payload with Maximum Fuel’. Table A shows the Global 7500 and G700 ‘Available Payload with Maximum Fuel’ to be similar, with the Global 7500 offering 55lbs more at 1,890lbs.
Cabin Cross-Section Comparison
As shown in Chart A, the cabin height of the Global 7500 at 6.2ft is marginally less than the G700 (6.3ft). Similarly, the width of the G700 cabin is slightly more (8.2ft vs 8ft). Not depicted on the chart, the G700 has just over two feet more cabin length (56.8ft vs 54.5ft).
The internal baggage volume for each jet is 195cu.ft, while neither offers external luggage space. Both jets are able to carry a maximum of 19 passengers in executive configuration, with both cabins able to be divided into multiple zones to enable simultaneous activities to take place and optimize passenger comfort.
Range Comparison
Using Wichita, Kansas, as the start point, Chart B shows only a 35nm difference between the Bombardier Global 7500’s and Gulfstream G700’s ‘eight pax with available fuel’ range (the Global 7500 shades it at 7,770nm vs 7,765nm).
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.
Powerplant Details
As mentioned previously, the Bombardier Global 7500 has two GE Passport 20-19BB1A engines, providing 18,920lbst each and burning 460 gallons of fuel/hour (GPH). By comparison, the Gulfstream G700 has two Rolls-Royce BR700-730B2-14 engines each producing 18,260lbst, and burning 493GPH.
Cost per Mile Comparison
Chart C details the ‘Cost per Mile’ for each jet, per JETNET, factoring direct costs and with both aircraft flying a 1,000nm mission with a 1,600lbs (eight passengers) payload. As shown, the Bombardier Global 7500 ($9.94/nm) has the lower cost per mile compared to the Gulfstream G700 ($11.36/nm) – a 14.38% difference.
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, per JETNET, 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 Bombardier Global 7500, at $3,178/hr, has a 14.8% lower variable cost when compared to the Gulfstream G700 ($3,638/hr).
Market Comparison
Table B contains the prices for a 2024 factory new model Global 7500 and G700 (per B&CA’s 2024 data). Also listed are the long-range cruise speed and range numbers (per B&CA), and the number of aircraft in-operation, the percentage for sale, and average sold (JETNET data).
The average number of new/used transactions (units sold) per month over the previous 12 months is 4.8 units for the Bombardier Global 7500 and 1.4 units for the Gulfstream G700 (though it should be noted that G700 deliveries were presumably still ramping up at the time of writing with no pre-owned market established yet).
Regarding the Global 7500, the model was in short supply on the pre-owned market, at 4.6% of the fleet.
Specifically, there were nine Bombardier Global 7500 business jets available for sale on the used aircraft market, according to JETNET, two of which had asking prices of $60.995m (2019 model) and $65m (2020 model). The remaining seven all invited buyers to enquire.
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. Ultimately, the final negotiated price remains to be decided between the seller and buyer before the sale of an aircraft is completed.
Unsurprisingly with the model being so new to the market, the Gulfstream G700 had no units for sale on the pre-owned market, as of this writing.
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, some taxpayers could 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 was a huge bonus for aircraft owners and operators. After December 31, 2022, the Act decreased the percentage available each year by 20% to depreciate qualified business jets until December 31, 2026. As of January 1, 2025, the percentage rate available has been reduced to 40%.
Table C and D depict examples of using the MACRS schedule for a 2024-model Bombardier Global 7500 and Gulfstream G700 in private (Part 91) and charter (Part 135) operations over five- and seven-year periods, respectively. The price is as published by B&CA at the time of writing.
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Original article published on avbuyer.com
