The holidays are a time to enjoy the present and celebrate with friends and family. But as the hustle and bustle of the year’s end subsides, the focus shifts from festivities to resolutions and predictions for the new year. And with all the ups and downs of 2012, the question arises: What will happen to the jet market in 2013?
As we look ahead to the coming year, the future isn’t clear. One factor influencing 2013 jet market predictions is the instability and unrest in North Africa and the Middle East. Another element for consideration is the uncertainty in European markets. The fuel cost rollercoaster has also added to the unpredictability.
With all the uncertainty, predictions of a brighter year ahead are all the more sweet. Industry leader Honeywell predicts slow, steady growth in the jet market. Although sales growth won’t be instant, 2013 will hold steady at flat growth or a slight increase. Over time, the sales picture will grow sunnier: Honeywell forecasts the sale and delivery of 10,000 jets worth $250 billion by 2023.
The company attributes the uptick in part to new wealth in developing nations, like those in Latin America. However, North America will still dominate the purchasing market, as it is expected to generate more than half the projected worldwide demand for the next five years.
Another possible bolster in steady growth is the diminishing inventory of used jets: Aircraft 10 years or older make up less than 20 percent of planes for sale. With fewer used jets available, the market is looking toward new aircraft offerings. Honeywell is seeing demand for new models in the light-medium class and sustained interest in jets with big cabins.
Predicting market behaviors and undertaking business planning during such uncertain economic times is not an easy task. However, it looks as though 2012 was at the bottom of the recent economic cycle. Generally, most companies are anticipating moderate growth in corporate travel demand in the coming year. With this promise of steady or a slight increase in growth, there is reason to celebrate this New Year’s Day!