LARGE CABIN GULFSTREAM MARKET UPDATE INC Performance. Integrity. Reputation. FOURTH QUARTER 2018 GULFSTREAM NEWS Gulfstream has taken the crown of most popular aircraft with 66 new G650/650ERs delivering in 2018. The demand across the industry continues to lean more towards larger cabin aircraft. For the first time ever, there are more large cabin aircraft in service than there are small cabin aircraft (8,036 vs 7,963). Additionally, the number of aircraft wholly owned in North America continues to climb (13,741 aircraft currently) while all other regions of the world have shown moderate declines in aircraft ownership since 2016. The recent volatility in the equity markets and a potential slowdown in the global economy gave reason for domestic and international buyers alike to take a step back and pause in December. However, the U.S. market remains strong and many of the pm-owned aircraft that are coming to market now, are the result of owners purchasing new aircraft. The supply of available pm-owned aircraft rose slightly in O4 2018, currently at 6.1% of in-service fleet for sale. However, this is still below the historical average and well below the peak of 14% available in Q4 2009. Inventory of aircraft 10-years old or newer has tightened considerably, with 390 aircraft currently available as opposed to approximately 700 aircraft for sale in 2016 (5% and 11% of the in-service fleet respectively), 10 new GS00s have delivered in Q4 2018, including its first international G500 which delivered in December. The international delivery was to Qatar Airways who received two G500s that will join a fleet consisting of five G650/ER already in service. Gulfstream was hoping to certify the G600 before the end of last year, but has run into some delays. They hope to soon get back on track with certification and customer deliveries within the first half of 2019. Lastly, although this has not been confirmed by Gulfstream directly, it has been reported by an I