U.S. To Lead Bizav Out of Slump
The U.S. will lead the recovery of the currently ailing business aviation industry, according to Sparta, N.J.-based consulting firm Brian Foley Associates. “This is good news since this region has always been the industry’s biggest market, accounting for 64 percent of the active worldwide business jet fleet,” noted company president Brian Foley. The recession and slowdown began in the U.S. in 2007, well before the rest of the world entered the downturn. “As such, a first-in, first-out scenario will occur, with the U.S. recovering before other regions. This will be aided by the sizeable [U.S.] fiscal and monetary stimulus,” he added. International demand, which surged in recent years to more than 50 percent of business aircraft sales and deliveries, will be tempered by a dollar that is now 20 percent higher than a year ago, Foley said. As a result, he believes North America will once again account for more than half of all business aircraft deliveries during the eventual market recovery. However, any industry comeback will require lower used aircraft inventories and higher aircraft utilization, as well as increases in gross domestic product growth, corporate profits, stock market levels and credit availability, according to Foley.