Bizjet Forecast Shows Blue Skies, with a Few Clouds
Forecast International yesterday released a prediction that 14,978 business jets, worth some $192 billion, will be manufactured between 2007 and 2016. The Connecticut-based market research firm estimates that very light jets will account for 39 percent, or 5,783, of business jet deliveries during the time frame. Further, Forecast projects that annual business jet production will top 1,000 aircraft this year, exceed 1,200 next year and reach 1,500 by 2011. However, not everything is good news within the business jet industry, according to the forecaster. The report notes that demand in the key North American market has been cooling due to market saturation, but this is being offset by demand from other regions such as Europe, the Middle East and the Asia-Pacific region. Another problem is that “existing sizable order backlogs have resulted in capacity bottlenecks for certain manufacturers,” leading to frustrated customers who just want their airplanes sooner rather than later. Forecast International also noted that implementation of aviation user fees in the U.S. could adversely affect demand.