Bizjets And The Economy

Historical market conditions provide insight for the future


According to JETNET, which presented its ‘state of the industry report’ during the National Business Aviation Association’s (NBAA) 65th annual conference and exhibition, the world economy grew 2.6 percent each year during the last ten years — and the global jet fleet grew 4.2 percent, a ratio of fleet to GDP growth of 1.6 percent.

Considering that the U.S. has 61 percent of the world’s business jets, it’s interesting to see how GDP and business aviation aircraft track together. JETNET officials say that despite record corporate profits, U.S. bizjet utilization has yet to fully recover from the effects of the economic downturn.

However, JETNET also forecasts that the business jet fleet will grow to just under 26,800 aircraft worldwide by the end of 2021, an increase of 45 percent over the ten-year forecast period. Some 2,100 jets will be retired or otherwise removed from service during this timeframe, says the company.

Also at NBAA this year, Honeywell forecasts nearly 10,000 new business jet deliveries worth about $250 billion from 2012 to 2022. The company forecasts 2012 deliveries of approximately 680 to 720 new business jets, a single-digit increase over levels reported last year — so slow but steady growth.

In terms of flight activity, Honeywell says the pace of recovery has effectively paused on several fronts. According to its 21st annual Business Aviation Outlook, a full recovery remains several years away. Despite that, ... looking ahead, most operators surveyed for Honeywell’s outlook believe that local economic growth will be stable or improve in the near term.

 

Thanks for your interest,

BDM

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