JetNet: Bizav Turnaround Just Around the Corner?

 - October 24, 2013, 4:30 PM

Less than half (49 percent) of owners and operators of business aircraft around the globe believe the business aviation industry is past its low point, according to the annual JetNet iQ market briefing presented this week at NBAA 2013. That’s a slight drop from the 52 percent who said the industry was beyond its bottom in last year’s survey, according to business aviation information firm JetNet. Regionally, 54 percent of respondents in North America believe the worst is over, while in Latin America and the rest of the world, only 35 percent expressed such confidence.

According to JetNet data analyst Rollie Vincent, aircraft deliveries will show a decline this year over 2012, which itself was hardly a banner year. “Three OEMs–Cessna, Hawker and Gulfstream–[didn’t make] their numbers in 2012,” Vincent said. This year’s decline is due to “execution issues regarding certification of some new [aircraft] programs” rather than lack of demand, he said.

Despite the dour outlook, Vincent noted that previous recoveries of business aviation following recessions required six years, which would indicate a turnaround in this market could be coming in as little as one year.

JetNet surveyed 507 respondents from 46 countries who collectively operate 1,331 fixed-wing turbine aircraft.