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Business plus jets equals $250 billion industry

17 October 2018

Business plus jets equals $250 billion industry

The business jet industry is expected to experience strong growth in the short to medium term, supported by several new airplane models coming to market and an improved used aircraft environment, according to Honeywell’s 27th annual Global Business Aviation Outlook.


Released today, the Global Business Aviation Outlook forecasts up to 7,700 new business jet deliveries worth $251 billion from 2019 to 2028, up 1 to 2 percentage points from the 2017 10-year forecast.


 


“A better used-aircraft market environment coupled with the entry into service of many new business jet platforms will lead to higher deliveries in 2019 after a virtually flat year in 2018,” said Bill Kircos, vice president, Global Marketing, Honeywell Aerospace. “We are excited about the used market and about new and innovative aircraft models that will not only drive solid growth in 2019 and 2020, but also have a significant impact on new business jet purchases in the midterm and long term.”



  • Operators plan to make new jet purchases equivalent to about 20 percent of their fleets over the next five years as replacements or additions to their current fleet, an increase of 1 percentage point compared with the 2017 survey results.

  • Of the total purchase plans for new business jets, 14 percent are expected to occur by the end of 2019, while 16 percent and 24 percent are scheduled for 2020 and 2021, respectively.

  • Operators continue to focus on larger-cabin aircraft classes, ranging from the Super Mid-size through Ultra-Long range, which are expected to account for more than 87 percent of all expenditures of new business jets in the next five years.

  • The longer-range forecast through 2028 projects a 3 to 4 percent average annual growth rate as new models, improved economic performance, and anticipated favorable exchange rates for international customers will contribute to industry growth.

  • Purchase plans are higher in North America this year than last, and increased significantly in Europe, with slow economic growth and geopolitics affecting plans in Latin America, Middle East and Asia Pacific.


 


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