Business jet demand slowdown continues
Survey sees demand improvement by 2012
Tom Stundza -- Purchasing, 10/26/2009 10:02:36 AM
After peaking in 2008, new business jet deliveries are projected to decline roughly 30% in 2009 followed by a 10%-15% decline in 2010 before starting a recovery in 2011. So says the Honeywell Aerospace annual business aircraft outlook, which forecasts 2009 deliveries of 750-800 new business jets, down from 1,139 in 2008. Deliveries in 2010 are expected to drop below 700.
The outlook is stronger starting in 2012 because of pent-up demand and an expected global economic recovery. By 2011-2012, there will be significant pent-up demand that will improve the outlook for order intake and new jet deliveries, says Rob Wilson, Honeywell Aerospace president of business and general aviation, in a statement. Long-term, "there is a strong demand out there," he says. "People still value business aviation and the efficiency and security."
The 2009 business jet down cycle has been much more severe than originally forecast in 2008 survey "due to the sudden, unpredicted downturn in the global economy and limitations on credit availability," according to Honeywell Aerospace.
The 2009 survey of 500 business-jet fleet operators in North America finds respondents expecting to purchase aircraft equal to about 25% of their existing fleets for replacement or expansion in the future but not until 2012 and later. In the meantime, "we'll have to buckle down for a slow but steady recovery," says Wilson.
Freeport not boosting U.S. copper output
10/26/2009Essar expands in North America
07/13/2007
Now Playing: 
