Honeywell Aerospace Forecasts $233 Billion in New Business Jet Sales Through 2017

Demand Trends by Aircraft Segment

The 2007 Business Aviation Outlook provides the following estimates ofdemand trends by aircraft class:

Long-Range and Ultra Long-Range: Deliveries of aircraft in these segmentsare projected to top 2,000 in the forecast period Deliveries might range ashigh as 225 aircraft and should average 170 to 190 per year over much of theforecast period. Aircraft in this category include the Bombardier GlobalExpress and Global 5000, Challenger 850, Gulfstream G450, G500 and G550,Falcon 900EX, Falcon 900DX and the new Falcon F7X.

Large: Honeywell Aerospace again forecasts delivery of more than 1,300large business jets over the forecast period. Near-term, deliveries areexpected to run around 120 aircraft in 2007 and 2008 then decline slightly toa stable level of around 100-110 aircraft per year until trending up again in2013 and beyond. Aircraft in this category include the Challenger 604/605,Gulfstream 350, Falcon 2000, Falcon 2000DX and EX, the Future Super-MidsizeFalcon and Embraer Legacy 600.

Medium and Medium-Large: Combined, new aircraft deliveries in thesesegments are forecast to approach 280 annually in 2007 and average around280-300 units annually for several years. Deliveries for the forecast periodshould total more than 2,600 aircraft. Jets in these segments continue toenjoy strong interest from fractional fleet operators. Growth in thesesegments is also being fueled by the introduction of new models, bothnear-term and in the later years of the forecast period. Among the neweraircraft in these segments are the Citation Sovereign, Gulfstream G150, Hawker900XP, Hawker 850XP and Hawker 4000. Established platforms include theBombardier Challenger 300, Citation X, Gulfstream G200, Falcon 50EX, andLearjet 60.

Light and Light-Medium: Honeywell Aerospace anticipates deliveries ofmore than 3,850 jets in these segments between 2007 and 2017, an increase ofmore than 18 percent compared with delivery expectations for these segments inlast year's Business Aviation Outlook. As previously noted, the light andlight-medium segments continue to be one of the larger areas of operator newjet purchase plans in the 2007 survey. Aircraft in these segments include theHawker 400XP, Hawker 750, Citation Bravo, Citation Encore+, CJ3 (525B),Citation XLS, Grob SPn, Embraer Phenom 300, Lear 40 and Lear 45/45XR.

Very Light: Deliveries of business jets in this segment are poised toaccelerate rapidly off a base of around 175 units in 2007. Deliveries areforecast to increase dramatically in 2008 and beyond, averaging just under 320aircraft per year for the latter portion of the forecast period. The rapidincrease in projected demand reflects the introduction of new very light jets,such as the Embraer Phenom 100 and Cessna Citation Mustang, both of whichcontinue to enjoy strong order backlogs. Also entering the segment is therecently announced HondaJet. Total deliveries of very light jets for the 2007to 2017 period are expected to exceed 3,300. Other production and announcedaircraft in this segment include the Cessna CJ1+ and CJ2+, Beechcraft PremierI and Sino-Swearingen SJ30-2.

Personal Jets: The 2007 Business Aviation Outlook provides an updatedlook at the emerging General Aviation Jet segment. This portion of industrydemand has centered on the emergence of very light aircraft such as theEclipse 500, Adam 700, Diamond Jet, Cirrus, Piper Jet and others not normallycovered by the Business Aviation Outlook.