Bizjet Deliveries Won’t Reach 2008 Peak Anytime Soon

By: Chad Trautvetter

July 9, 2009
Business Aviation

Business aviation market analyst Brian Foley Associates does not expect business jet deliveries to top 2008 levels for at least another 10 years. “A confluence of factors came together to create last year’s record-breaking 1,313 aircraft deliveries,” company president Brian Foley said in a report released today.

“The probability of each major market driver of business jet sales simultaneously peaking again seems remote. According to Foley, the factors that created the business jet delivery boom from 2003 to 2008 include worldwide stock market indices reaching new highs, strong gross domestic product, healthy corporate profits and growing personal wealth.

Additionally, he noted, the U.S. dollar’s value dropped, enticing international markets to buy dollar-denominated business jets, and easy credit was available. “Since aircraft deliveries lag sales by a year or two, the perfect sales environment would have to materialize again within the next eight years to be captured in our forecast through 2018.

That seems unlikely in this environment following a worldwide recession. As the relatively young business jet industry matures, it will eventually discover that there’s a finite market for business jets and that not every upturn will necessarily have to be bigger than the last,” said the analyst.

Back

Bizjet Market Continues Improvement, JPMorgan Says November 05, 2009 JPMorgan’s latest business jet monthly report, released yesterday, indicates that October was another month of modest improvement in aircraft... [more]
GAMA 3Q Numbers Show Deliveries, Billings Down November 05, 2009 Airplane shipment numbers released today by the General Aviation Manufacturers Association (GAMA) starkly demonstrate the effect the economic... [more]
NBAA Convention Report 2009 November 02, 2009 For Cessna Mustang owner Jeff Greenberg, NBAA’s 62nd Annual Meeting & Convention just wasn’t long enough. Attracted to the event held last month... [more]
Donnelly succeeds Campbell as Textron CEO next month November 01, 2009 Cessna and Bell parent company Textron has tapped company president and COO Scott Donnelly to replace retiring Lewis Campbell as CEO, effective... [more]
Pelton: Bizav Issues Don’t End at Borders November 01, 2009 Business aviation faces similar issues around the world that will require operators to cooperate across regional lines if the industry is to... [more]