Teal Group Sees Continuing Shift Toward Larger Bizjets
The business aviation market’s shift toward larger aircraft continues, and the effect on the industry is growing, according to Teal Group’s latest annual business jet overview. “Last year saw a welcome but largely meaningless upturn, with an impressive 16.3-percent increase in deliveries by value,” said Teal vice president of analysis Richard Aboulafia. “But all of this growth came from large-cabin jets, particularly Gulfstream’s G650. All the smaller segments remained firmly stuck in first gear.”
During the 2008 to 2012 decline, the top half of the market–jets costing $26 million and more–actually grew slightly in value, he added, while the bottom half suffered a catastrophic 56-percent drop. “The growth we saw in 2013 means that market bifurcation has gone into overdrive,” Aboulafia explained.
The Teal Group forecasts production of 13,030 business aircraft worth $325.6 billion over the next decade. By value, 63 percent of the revenue will be generated by the larger categories. The last 10 years saw production of 11,398 business aircraft worth $234.6 billion.