Bizjet Deliveries Won’t Reach 2008 Peak Anytime Soon
Business aviation market analyst Brian Foley Associates does not expect business jet deliveries to top 2008 levels for at least another 10 years. “A confluence of factors came together to create last year’s record-breaking 1,313 aircraft deliveries,” company president Brian Foley said in a report released today. “The probability of each major market driver of business jet sales simultaneously peaking again seems remote.” According to Foley, the factors that created the business jet delivery boom from 2003 to 2008 include worldwide stock market indices reaching new highs, strong gross domestic product, healthy corporate profits and growing personal wealth. Additionally, he noted, the U.S. dollar’s value dropped, enticing international markets to buy dollar-denominated business jets, and easy credit was available. “Since aircraft deliveries lag sales by a year or two, the perfect sales environment would have to materialize again within the next eight years to be captured in our forecast through 2018. That seems unlikely in this environment following a worldwide recession. As the relatively young business jet industry matures, it will eventually discover that there’s a finite market for business jets and that not every upturn will necessarily have to be bigger than the last,” said the analyst.