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Phenom 300 Market Report – 3Q 2019, Performance and Operating Cost

2018 marks the sixth year consecutive year Embraer’s Phenom 300 took the coveted title of “World’s Best Selling Business Jet”.  The reasons are many, and culminate to make the Phenom 300 the most disruptive light jet to enter the market in decades.  In this article you will find Phenom 300 performance, operating cost and pricing.

Phenom 300 History

In the early 2000s, Embraer sought to diversify its business.  Primarily focused on commercial aviation, in 2002 Embraer tipped its toes in the business aviation market with the introduction of the Legacy 600.  An ERJ 135 airliner outfitted with an executive interior and larger fuel tanks, sales were strong.

Recognizing its philosophy of designing robust, easy to maintain, fuel efficient, yet high performance aircraft resonated with business aviation, in 2005 Embraer announced its intent to clean sheet design two light jets, the Phenom 100 and Phenom 300.  The Phenom 100 and Phenom 300 entered service in 2008 and 2009, respectively.

The Phenom 300 program has been remarkably successful. Largely displacing a number of competitive models, the jet has seen mainstream adoption from not only owner operators, but corporate flight departments, and the largest fractional program operators such as NetJets and Flexjet.

In 2014, Embraer began offering Garmin 3000 avionics featuring new touch screen controllers and larger high resolution displays.  Priced at $358,000, the option was almost always selected prompting Embraer to include the avionics as standard equipment the following year.  A 2 place side-facing divan option was introduced in 2014 as well.  Today, an estimated 45% of aircraft are delivered with the divan, making it the most popular passenger configuration.

In March, 2018, Embraer delivered its first Phenom 300E series featuring interior refinements such as redesigned seats, improved center aisle styling, and a new upper tech panel cabin control system.

The numbers don’t lie.  With more than 430 aircraft delivered since 2009, Embraer knocked the cover off the ball with the Phenom 300.

Garmin G3000 avionics were made standard in 2015.  Popular Phenom 300 features include an “air-stair” entry door, the tallest and widest cabin cross section in class, fully enclosed lavatory with windows, and spacious baggage compartment. 

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Phenom 300 Current Market

After concluding 2018 with only 11 aircraft for sale, Phenom 300 inventory has steadily increased through 1H19. Currently, Phenom 300 inventory stands at 16 aircraft, its highest level since 2Q18.  That said, percentage of the Phenom 300 fleet for sale stands at a healthy 3.2%. The most compelling options transact quickly, and in many cases, are not publicly advertised. Of the 16 aircraft available today, 8 are located in Europe, representing 50% of worldwide Phenom 300 inventory.

P100 Inventory - Line | amCharts

Phenom 300 Recent Sales

Between January 1, 2019 and June 30, 2019, 11 pre-owned Phenom 300s transacted, versus 15 transactions in the 6 month period prior.  Despite this reduction, 1H19  Phenom 300 transaction levels are up 85% relative to 1H18, which saw 6 Phenom 300 transactions.

North America continues to be the dominate Phenom 300 market with 6 transactions in the period.  Claiming 3 transactions in the last 6 months, 2014 vintage aircraft are the most active of the Phenom 300 fleet.

Based on recent sales volume, and current inventory, there is approximately 8.7 months of Phenom 300 supply on the market.

“What You Absolutely Need To Know When Buying A Pre-Owned Phenom 300…”

P100 6 Mos Sales 3D stacked | amCharts

Phenom 300 Pricing

Passage of the Tax Cuts and Jobs Act of 2017 in 4Q17 brought many otherwise sidelined aircraft buyers into the market. Like many popular aircraft markets, Phenom 300 inventory experienced a sharp decline in 4Q17.  In 1Q18, Phenom 300s inventory rebounded briefly, however 3Q saw increased activity and subsequent return to a near two year low.

Pre-owned Phenom 300 values currently range from the high $5MMs range to the mid $8MMs.  Aircraft valued at the entry point value range are generally early serial numbers, configured for 6 passengers with an extended galley (in lieu of additional seats), and non-belted lavatories.  2012 to 2013 vintage aircraft, configured for 8 passengers, range from the low to high $6MMs.  Later model, 2014 and 2015 vintage aircraft equipped with Garmin G3000 avionics (upgraded from G1000 avionics), with 8 or 9 passenger configurations are trending in the mid to high $7MM range.  Comparably configured 2016 models are priced in the mid $8MMs.

Factors such as vintage, airframe time, engine program status, maintenance status, optional equipment installed, and ownership pedigree significantly affect aircraft values.

For more insight, please contact Adam Smith at +1.940.205.7470, or via email: adam@verityjet.com.

Phenom 300 Performance

The Phenom 300 has a maximum NBAA IFR range of 1,971 nautical miles, and is an ideal platform for operators who’s typical missions are between 900 and 1,700 nautical miles.  Its high bypass Pratt & Whitney PW535E engines produce 3,360 lbs of thrust, delivering an average cruise speed of 420 knots while burning approximately 150 gallons (1,002 lbs) of fuel per hour (FL410, 17,000 lb operating weight, ISA).

Phenom 300 performance relative to its competition:

* NBAA IFR Range (100 NM Alternate)
** Max Take-Off Weight, Sea Level, ISA
*** Max Landing Weight, Sea Level, ISA
Performance information is derived from manufacturer publications and is not necessarily representative of a particular aircraft.  No specific performance representations are being made by the author of this article.

Phenom 300 Operating Economics

Accounting for airframe and engine maintenance reserves, fuel costs using the U.S. national average of $4.25 per gallon (burning 169 gallons per hour) and miscellaneous expenses, the variable (direct) cost to operate a Phenom 300 is approximately $1,711.70 per hour.

By | 2020-01-23T20:14:34+00:00 August 1st, 2019|

About the Author:

After many years selling new and pre-owned aircraft, I co-founded Verity Jet Group to help pre-owned jet buyers and sellers navigate the subtleties of aircraft transactions. You can learn more about me here.