GRAHAM WARWICK / WASHINGTON DC
First-half deliveries down by 37%, but accelerated depreciation provision starts to stimulate interest in new aircraft
Business-jet deliveries reported by manufacturers fell almost 37% in the first half of the year, but new US tax rules may be stimulating interest in new aircraft. Shipments of single-engine piston aircraft bucked the downward trend, meanwhile, edging up by 1.4% over the same period last year.
The General Aviation Manufacturers Association (GAMA) says manufacturers reported shipments of 222 business jets in the first six months, down from 352 for the same period last year. Bombardier did not report any Learjet deliveries for the first half because of accounting changes. The company shipped 35 Learjets in the same period last year. As a result, its reported shipments for the first six months were down from 69 to 18 aircraft.
Cessna saw deliveries decline across its Citation line, but it still led first-half business jet shipments with 106 aircraft. Dassault Falcon deliveries almost halved to 16 aircraft, while Gulfstream shipped 34 jets, down from 51 a year ago. Raytheon business jet shipments were almost unchanged at 32 aircraft.
GAMA says there are signs a new accelerated depreciation provision allowing buyers to write off half the value of an aircraft in the first year is stimulating some orders. This is confirmed by Gulfstream parent General Dynamics, which says sales activity was good in June and July, with several buyers citing the new tax rules.
According to GAMA figures, turboprop deliveries were down almost 11% in the first half, to 99 aircraft, while overall piston shipments slid just over 3%, to 710 aircraft.
Source: Flight International
