Honeywell is growing more optimistic about long-term prospects for the business jet market, even though it expects there to be 15% fewer deliveries this year than in 2010.
In the 20th edition of its annual Business Aviation Outlook, released yesterday, the technology company predicts 10,000 business jet shipments worth $230 million through to 2021. This represents a 2% increase over the 10-year total Honeywell was predicting in 2010.
This year, Honeywell is estimating 600-650 business jet deliveries, down from 732 in 2010 due to "continued slow global economic recovery." However, it expects numbers to edge up in 2012 to just under 700 deliveries by which time the industry will be "well positioned to begin another period of expansion."
The survey, which polls 1,500 flight departments around the world, also says purchase expectations over the next five years have gone up in Asia and the Middle East, but have retreated in other regions, "most noticeably in Europe and to a lesser extent Latin America." Around 80% of planned purchases are timed for 2013 or beyond.
Rob Wilson, president of Honeywell's business and general aviation business unit, said operators in emerging markets including Brazil, Russia, India and China and the Middle East were critical to "maintaining industry momentum as current backlogs will not sustain delivery levels indefinitely."
He added: "This year, operators outside North America displayed mixed attitudes about the strength and pace of this nascent recovery. They are still looking beyond the current economic climate and anticipating a return to improved business conditions, but some regions have tempered near-term expectations and buying decisions as reflected in this year's forecast. Despite the tepid pace of global economic activity, North American operators responding to the Honeywell survey indicated their overall new jet purchase plans for the five-year horizon were largely unchanged for the second year in a row."
Source: Flight Daily News
