The outlook for the commercial aerospace industry remains extremely positive and this is driving strong mergers and acquisitions activity, according to Michael Richter, managing director of the aerospace and defense group at financial advisor and asset manager Lazard.
“We sense an eagerness for a pickup in the long-depressed business jet market, particularly at the lower end, but we continue to observe mixed signals,” JPMorgan Investment Research notes in its latest market report. Despite the conflicting signals, the investment research firm still predicts an 8-percent rise in business jet deliveries this year.
If you’re gainfully employed in business aviation, odds are you vote Republican and cheerlead for robust capitalism, and that’s understandable. Nobody with a mortgage and kids to educate is inclined to bite the hand that feeds, and capitalism-created wealth is what pays the bills for all of us in this business.
Demand for new-production business jets “showed signs of perking up” in the second quarter, JPMorgan North American Equity Research noted in its monthly business jet market update.
Demand for new-production business jets “showed signs of perking up” in the second quarter, JPMorgan North American Equity Research notes in its latest monthly business jet market update. However, it is perturbed about macroeconomic concerns.
Bryan Moss, the former president and vice chairman of Gulfstream, has joined private investment firm Guggenheim Partners as the chairman of its recently restructured business aircraft investment division. The company, which manages more than $80 billion in assets, provides investment management, investment banking and capital market services among other offerings to corporations, governments and individuals.
Aerospace firms have been doing a roaring trade here at the Paris Air Show, selling record volumes of aircraft, engines and all the associated systems and services that go with them. But, according to leading mergers and acquisitions specialists, they should be just as busy buying and selling each other since the industry recovery now presents the ideal combination of motive and opportunity.
“We are gaining confidence that a recovery is taking hold following good news in recent weeks,” JPMorgan North America Equity Research noted in its latest monthly business jet update, released yesterday. The firm cited the net orders for 74 aircraft booked by Bombardier in the fourth quarter, as well as the firm order for 50 Bombardier Globals placed by NetJets last week.
According to JPMorgan’s latest business jet monthly report, released on Friday, improvement in the pre-owned market has stalled. However, it expects the trend toward lower inventories to restart and continue. The nearly 3-percent decline in pre-owned inventories in the 12 months following the July 2009 peak has “lost some steam” as levels have increased slightly (up 0.1 percent) for the second consecutive month in September.
UBS Investment Research’s May business jet index came in at 50, indicative of a stable market and in line with its previous two surveys in January and March. “This recent plateau follows increases in our index over our prior eight surveys, going back to late 2008,” UBS said.
- Page 1