Analyst Predicts ‘Solid Future’ for Bizjets

 - August 15, 2013, 3:15 PM

The business jet fleet is projected to grow by 55 percent over the next 12 years–to nearly 31,000 aircraft from about 20,000 today–according to the International Bureau of Aviation’s Business Jet Asset Report 2013, released on Tuesday. Much of the new growth is expected to come from new deliveries, “Implying many business jet models have a solid future ahead of them,” the group said.

According to IBA senior analyst and report author Jonathan McDonald, “Current production models offering a more robust investment potential include the super-midsize Bombardier Challenger 300 and Gulfstream G280, both using modern Honeywell engines. In contrast, IBA advises caution around the Hawker 4000, which could face product support issues due to the Hawker Beechcraft bankruptcy.”

Despite faring poorly during the recent economic downturn, very light jets–such as the Eclipse 500, Embraer Phenom 100 and Cessna Citation Mustang–will show “significant growth” by 2025, IBA predicts. In addition, the group sees good prospects for ultra-long-range jets and bizliners. “These long-range, intercontinental aircraft are predicted to be strong performers as the market continues to expand globally and we expect to see the Max and Neo-based [737- and A320-based bizliners] do well later this decade,” IBA said.