Nearly 4,900 business aircraft worth more than $62 billion will be built during the next decade, according to the latest forecast by US-based Teal Group. "After spending the late 1980s and early 1990s in the doldrums, the business jet market continues to be in the middle of a tremendous growth spurt," says Teal Group's leading analyst, Richard Aboulafia.
As predicted in its forecast last September, Bombardier will again lead its rivals in terms of market share, followed closely by Gulfstream, Cessna and Dassault. Although Raytheon is predicted to rank fifth, its position is expected to improve after next year, with the introduction of new models, including the Premier I and Hawker Horizon business jets. "The other manufacturers will either become niche players or be absorbed by Bombardier, Cessna and Raytheon," says Aboulafia.
Fairfax, Virginia-based Teal attributes the boom in sales largely to the introduction of fractional ownership, an unprecedented number of new models and the "near-supply push" phenomenon which pushes up demand which cannot be sustained.
Aboulafia also links the increase in sales to the cutbacks in 19-seat regional airline services across the USA, driving private individuals and companies to transfer to business aircraft for their transportation needs.
Coupled with this, the unflattering image of business aircraft as "rich men's toys" and "admiral's barges" is being steadily eroded.
Source: Flight International
