Bizjet Orders Could Be Net Negative This Year
This year will be one of the most challenging on record for new business jet orders, according to business aviation industry consulting firm Brian Foley Associates. “We could easily end the year with the industry as a whole having more order cancellations than new [orders],” said company president Brian Foley. “Some companies will buck that trend, but taken as a whole the industry could see net-negative orders for the year.” While Foley noted that cancellations have subsided, there is potential for additional fallout if more aircraft progress payments can’t be met. With the tight credit markets, he said it’s not certain that all customers will be able to obtain financing to meet these progress payments. Foley believes as much as 26 percent of the industry’s backlog peak in the third quarter of last year is at risk of cancellation.