Experts divided on industry rebound
The radical shifts in business aviation over the past year were the focus of last month’s 16th annual Corporate Aircraft Transactions seminar held in New York, hosted by Insight. While examining how most aspects of the industry have been affected, many participants expressed their surprise at how fast the industry was overtaken by the economic downturn. Dave Labrozzi, president of GE Capital’s Aircraft financing division and the event coorganizer, firmly keyed the industry’s rebound potential to Wall Street. “If you look back over the last 25 years in this industry there is a 92-percent direct correlation between the health of corporate aviation and, not surprisingly, corporate profits for the Dow Jones.” While some participants noted a recent uptick in pre-owned
aircraft activity, GAMA president Pete Bunce acknow- ledged the first quarter de-cline in industry shipments and expressed concern about the upcoming second-quarter numbers in the face of a year that is projected as having the lowest global economic growth in 60 years.