Second Half ‘Crucial’ for Bizjet OEMs

 - September 29, 2010, 9:27 AM

“Elevated used inventory, attractive used pricing and macro uncertainty continue to hold down demand for new business jets,” JPMorgan Equity Research said in its latest business jet monthly report. “As a result, OEMs are eating further into their backlogs, and if these don’t stabilize in the coming quarters, further [production] rate cuts seem likely.” However, the risk is not the same across all categories, with demand for large-cabin jets continuing to outpace that for light jets by a “striking” degree. “We’re not ready to say that large business jets are out of the woods as orders remain anemic overall, and the next two quarters will be crucial in determining whether further rate cuts are necessary,” said the firm.