According to a monthly business jet report issued by JPMorgan this week, the pre-owned market recovery continues though new jet demand is expected to lag.
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The International Association of Machinists and Aerospace Workers (IAM) has accused General Electric Aviation of failing to seriously consider viable proposals that would have preserved the GE Aviation facility in Albuquerque, N.M. “Despite a legal obligation to weigh alternatives, it is clear the decision by GE to close this plant was made long ago,” said Ernest “Red” Dow, Local 794 president and directing business representative.
Boeing announced today that it would take a pre-tax charge against third-quarter financial results of approximately $1 billion “due to increased production costs and the difficult market conditions” associated with the 747-8 program.
“We’ve felt a more positive vibe on business jets recently, with used inventory ticking down slightly and flight operations edging upward,” JPMorgan Equity Research aerospace analyst Joseph Nadol III said last month.
Production and maintenance workers at Boeing Charleston, the former Vought factory in North Charleston, S.C., yesterday voted to remove the International Association of Machinists and Aerospace Workers (IAM) as their collective bargaining representative.
As Boeing’s Randy Tinseth related in his August 24 blog, the company’s employees “continued to keep [their] heads down” while the world’s media–press and bloggers alike–speculated on when the company would decide to fly the now more than two-year-delayed 787 Dreamliner.
Within days after it became public last month that Congress was seeking to purchase additional business jets for use by senior government officials, House leaders dropped the $550 million request from the Defense Department’s budget.
Boeing has identified a remedy to the 787 Dreamliner’s wing-to-side-of-body stress problem the company revealed last month, but engineers haven’t yet decided on an approach to implementing the plan, chairman, president and CEO Jim McNerney said this morning during the company’s second-quarter earnings call.
The radical shifts in business aviation over the past year were the focus of last month’s 16th annual Corporate Aircraft Transactions seminar held in New York, hosted by Insight. While examining how most aspects of the industry have been affected, many participants expressed their surprise at how fast the industry was overtaken by the economic downturn.
As business aviation has matured, the lessons learned from accidents and incidents have led to significant improvements in design, technology, materials and maintenance–all of which have made business jets one of the safest forms of transportation.