The Equipment Leasing & Financing Foundation has released the results of a survey of financing experts, “to reveal and analyze the collective thinking of business aircraft lenders, lessors and investors (financiers) about the future of their industry in 2013 through 2016.” In general, “Financiers think the worst effects of the recession and financial crisis in 2008 are behind them and that business is picking up.” The report concludes, “business aircraft will gain altitude in 2013 through 2016 and ultimately ascend to an active (if not robust) transactions market during th
This year’s early round of business aviation market forecasts–from Bombardier, Embraer and Honeywell–present a mixed picture where a moderately optimistic outlook for the U.S. still fails to outweigh economic uncertainty in Europe and slowing growth in Asia.
Demand for air travel continues to surge worldwide as emerging markets led another strong month of traffic growth in February. International Air Transport Association (IATA) data released last week shows that passenger demand rose 3.7 percent during the month compared with February 2012. According to IATA, since last October passenger demand has grown at an annualized rate of 9 percent, almost double the growth trend over the first nine months of 2012.
NBAA released a new study today showing that even during the worst economic times since the Great Depression, companies that relied on business aviation outperformed those that did not. According to NBAA, the companies that use business aircraft have better shareholder value and recovered from the recession more quickly than their peers.
In 1998, the National Business Aviation Association began honoring member companies that have flown 50 years or more without an accident, and in 2006, the association added companies that have 60-year records. AIN interviewed this year’s honorees to find out about their operations and the secrets of their success.
In a February 1 letter to American Airlines employees, company chairman and CEO Thomas Horton identified $1.25 billion in annual employee-related cost reductions—estimated to involve between 12,000 and 14,000 job cuts—among a list of some $2 billion worth of annual cost-savings initiatives that include restructuring debt and leases, grounding of older airplanes and improving supplier contracts.
The International Air Transport Association (IATA) today announced revisions to its industry outlook for next year, downgrading its central forecast for airline profits from $4.9 billion to $3.5 billion for a net margin of 0.6 percent on threats posed by the so-called Eurozone crisis.
Uncertainty. It’s a word that packs a lot of fear and indecision into four syllables, and one that has continued to burden not only the U.S. economy but that of the world as well.
Business aviation may still be brimming with righteous indignation over recent attacks by President Barack Obama (in the row over bonus depreciation) and The Wall Street Journal (over the Block Aircraft Registration Request issue), but it now faces bigger and more tangible problems.
It has been two years since the economy went south, dragging business aviation right behind, and a year-and-a-half since a panel of “top economists” formed by the non-profit National Bureau of Economic Research (NBER) declared the recession over as of June 2009.
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