Honeywell’s Global Business Aviation Forecast released in October 2013 shows good news for the next 10 years, particularly for North American markets. This news is a welcome up note following the 2009 economic low.
According to Honeywell, North America is a reemerging market: 61% of projected demand between 2013 and 2017 will be North American, which is an 8% higher demand than last year. The rest of the world, including Brazil, Russia, India, and China (BRIC), are falling behind; however, 50% of buyers in the BRIC countries plan to make a purchase within the next two years. The outlook for the European market is bleak with only 12% of new jet deliveries over the next five years headed there, a 6% decline compared with the forecast in 2012. However, analysts remain optimistic that those numbers might improve.
Honeywell’s forecasts paint a positive picture for the next decade. For 2013 through 2023, the company’s outlook predicts 4-5% average annual industry growth. In addition, the report forecasts as many as 9,250 new business jet deliveries, which equates to more than a $250 billion value. In addition, 28% of jets will be replaced with new jets over the next five years, and more than 55% of new purchases are expected to be large-cabin jets.
This statistic highlights a trend towards larger aircraft. Super midsize through ultra-long-range and VIP-configured narrow-body airliners are expected to account for more than half of total deliveries and 83% of the deliveries’ value. This scenario highlights the reason that current forecast for the number of units is lower than it was in 2012, but the value is 4% higher: Price increases and the market trend toward larger models.
“The trend toward larger cabin aircraft with ever-increasing range expectations and advanced avionics is seen more strongly than ever in this survey,” said Rob Wilson, president of Honeywell Business and General Aviation.
What does all this mean for current aircraft owners and those in the market? The future looks bright! With new jet orders gaining strength this year, used jet sales should also see activity. Whether you are looking to sell or purchase a jet — new or pre-owned — an experienced broker can help you navigate the best deal.
Contact L & L International if you need assistance in purchasing or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at 877-453-8276 (+1.305.754.3313), or visit us online.