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

As NBAA opens, biz remains bullish


Honeywell Aerospace projections are based on general aviation orowner-pilot survey data collected in 2005 and corporate flight departmentinterest reflected in the 2007 purchase expectations survey. Total demandpotential over a 10 year period is estimated to be in the range of 6,000-7,000very light personal jets. When combined with new-generation low-cost aircraftcarried in the Very Light segment of the Business Aviation Outlook, the totaldeliveries range from 8,000-9,000 aircraft from 2007-2017 and fall directly inthe range predicted by earlier Honeywell survey research. The projections nowfactor in demand from fractional ownership companies, branded charter and someemerging "air taxi" operations that have ordered ultra-light jets as the coreof their fleets. Inclusion of these additional sources of demand hasincreased the outlook over the pure owner pilot based levels reported a yearago. Additionally, new OEM's with credible development programs have emergedand the forecast window has moved a year further into a period of rapidlyexpanding delivery ramp up plans for established programs.

Business Liners: The current Business Aviation Outlook does notexplicitly include aircraft in the Business Liner class (typically well over100,000 pounds takeoff weight and based on transport airframes). However,purchase expectations are recorded for these models in the survey. Deliveriesof aircraft in this class are projected to total around 250 through 2017 andshould average more than 20 aircraft per year in the forecast period.Aircraft represented in this segment include the Boeing BBJ series, the AirbusElite A318 and Airbus Corporate Jetliner as well as the Lineage 1000 fromEmbraer, plus corporate versions of twin aisle aircraft. This segmentcomprises an additional $15 billion of business aircraft sales.

The Honeywell Aerospace Business Aviation Outlook and the purchaseexpectations it summarizes are a snapshot of expected business aircraft salesat a point in time and reflect fleet operators' views of current events, suchas political and economic conditions, fuel costs and changes in regulations,taxes and user fees that would affect expected sales in the near term.Honeywell Aerospace's Business Aviation Outlook does not reflect the impact ofunforeseen events such as a war, major economic shock, fuel crisis or newregulatory restrictions. The Outlook is based in part on Global Insight'sbaseline economic forecast assumptions that call for economic growth atquarterly rates in the two-to-three percent range for the next six quarters,and exceeding three percent thereafter.

Honeywell Aerospace has produced its Business Aviation Outlook for 21years and has shared the findings publicly for the last 16 years. This year'sBusiness Aviation Outlook is derived from interviews with over 1,500 corporateflight departments around the world that operate more than 15 percent of theworld's turbine-powered fixed-wing aircraft. The Outlook is also shaped byinformation from aircraft manufacturers, other industry sources and HoneywellAerospace's analysis of the impact of various economic indicators on industrydemand trends. Honeywell's Business Aviation Outlook tracks purchaseexpectations for business jets with gross take-off weight (GTOW) of less than100,000 pounds.

Honeywell International is a $34 billion diversified technology andmanufacturing leader, serving customers worldwide with aerospace products andservices; control technologies for buildings, homes and industry; automotiveproducts; turbochargers; and specialty materials. Based in Morris Township,N.J., Honeywell's shares are traded on the New York, London and Chicago StockExchanges. It is one of the 30 stocks that make up the Dow Jones IndustrialAverage and is also a component of the Standard & Poor's 500 Index. Foradditional information, please visit http://www.honeywell.com

Based in Phoenix , Honeywell's aerospace business is a leading globalprovider of integrated avionics, engines, systems and service solutions foraircraft manufacturers, airlines, business and general aviation, military,space and airport operations.

This release contains forward-looking statements as defined in Section 21Eof the Securities Exchange Act of 1934, including statements about futurebusiness operations, financial performance and market conditions. Suchforward-looking statements involve risks and uncertainties inherent inbusiness forecasts as further described in our filings under the SecuritiesExchange Act.

SOURCE Honeywell Aerospace

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