Honeywell Forecast: Bizav Outlook Healthy
Even taking into account the most recent upheaval on Wall Street, engine and avionics manufacturer Honeywell Aerospace’s just released 17th annual business aviation market forecast calls for deliveries of up to 17,000 new jets worth approximately $300 billion over the next decade. Based on operator responses, the results from this year’s survey show record deliveries will continue through next year, with a drop off in 2010. Honeywell’s forecast, which is a blend of survey responses from flight departments combined with production data from OEMs and market analysis, predicts a delivery peak next year, with the market growth cycle resuming in 2012. In the more immediate term, a record delivery of around 1,200 new business jets is expected this year, up from 1,020 last year. While the prediction represents a 15-percent year-over-year increase, it is still below last year’s forecast that more than 1,300 airplanes would be delivered. According to the report, deliveries next year could reach 1,400 business jets depending on how quickly some new programs ramp up. Despite the positive outlook there are some signs of softening within the industry due to increasing fuel costs. However, Honeywell said utilization rates of newer airplanes and long-range aircraft have remained relatively flat.