After a slow start in 2013, the business aviation market’s future is getting brighter. Sources such as J.P. Morgan, Airclaims, and Aviation International News (AIN) have cited good reasons for positivity in the business jet market.
New jet sales
One of the biggest reasons for the hopeful outlook is the increase in new jet sales. Recent reports highlight Flexjet’s $5.2 billion order for 85 new Bombardier business jets, featuring the Challenger 350, Challenger 605, Learjet 75, and Learjet 85. The agreement also includes options for an additional 160 business jets.
And hopefully bizjet sales won’t stop there, as experts are predicting a growing need to replace older business aircraft. According to Airclaims, the demand for next-generation aircraft will be stimulated by the market arrival of new business aircraft, with a total of 20 new models. Offering benefits like longer ranges, less fuel burn, and lower noise levels, these new models will be an appealing option for businesses looking to increase efficiency. According to AIN Online, Airclaims estimates that the rate of new aircraft deliveries will reach 1,000 to 1,100 units annually around 2020.
Market recovery
Another good sign that the market is rising comes from J.P. Morgan. The firm reports that U.S. flight operations climbed 4.7% year-over-year in July 2013, which is the best result since May 2011 and the fourth consecutive month of year-over-year growth. With these numbers, broad-based recovery of the market isn’t difficult to imagine.
These hopeful statistics are welcome news after several slow-to-flat years in the bizjet market. Though the market was steadily climbing until the financial crisis of 2008, the sales of very light jets have been in decline since. At the same time, the delivery of large business aircraft has been more or less flat since 2003. The forecasted upswing is a light at the end of the tunnel for businesses in the private jet arena.