Industry analysts appear to be upbeat about the business aviation market, both new and used business jets. Here’s a breakdown of the factors supporting this position:
- Lower used business jet inventory and 5.7% growth in pre-owned jet transactions from November 2011 to November 2012
- Record corporate profits
- Higher aircraft use
- Boeing Business Jets “monumental” year
- Extension of U.S. 50% bonus depreciation on business aircraft. This incentive can apply to aircraft under contract by Dec. 31, 2013, but not put into service until 2014.
- Regional airports seeing large increases in general aviation flights (example: Long Island MacArthur Airport reports 33% increase in private plane flights in 2012 compared to 2011)
- Especially strong December 2012 for Bombardier (11 contracts for Learjet 75 and Global 6000)
Things are looking up for the private jet market, which is a good thing. Aviation is a significant part of the U.S. economy; it’s not simply a luxury market. The business aviation sector has far-reaching, significant effects:
- Employs 1.2 million skilled, high wage jobs
- Inserts $150 billion in U.S. economy every year
2013 promises to bring increased improvement in business aviation. It’s about time!