Bizjet Market Expected To Ride Out Economic Storm
“Things are better than they appear,” Sentient Flight Group vice president of aircraft management Gil Wolin said today at the 13th annual Corporate Aircraft Transactions Conference in New York City. Despite the souring U.S. economy, the business aviation industry is expected to be sustained by a growing number of international millionaires, declining airline service and fractional aircraft owners. David Strauss, executive director of UBS Investment Research for aerospace and defense, forecasts a less optimistic outlook, however. He said the rate of new aircraft deliveries has been slowing since February, though OEMs are still projecting good times ahead. Large backlogs, he speculated, might help to keep the industry afloat during the hard economic times in the U.S. A drop in demand and deliveries, he added, indicates a return to normal levels following an “extreme” peak over the past two years. “The business jet market might be able to power through this unscathed,” he concluded.