This list is designed to give an insight into the broad areas of work available across the whole of the industry, but please note the list is indicative rather than exhaustive.
While developed economies are generally faring better, commodities demand, foreign exchange and political uncertainties remain as concerns," said Brian Sill, president, Commercial Aviation, Honeywell Aerospace.
In the meantime, operators we surveyed this year indicated plans to increase usage of current aircraft modestly in the next 12 months, providing some welcome momentum to aftermarket activity, which has been flat recently.
Deliveries of approximately to new jets ina low- to mid-single-digit percentage decline year over year. The pullback in deliveries expected in comes on the heels of a small increase in and is largely due to slower order rates for mature models and a stabilization in fractional-usage type of aircraft deliveries.
Operators plan to make new jet purchases equivalent to about 27 percent of their fleets over the next five years as replacements or additions to their current Global business jet industry survey forecasts, an encouraging increase but one that is less than firm in timing.
Of the total purchase plans for new business jets, 21 percent are intended to occur by the end ofwhile 18 percent are scheduled for andrespectively. Operators continue to focus on larger-cabin aircraft classes, ranging from super mid-size through ultralong-range and business liner, which are expected to account for more than 85 percent of all expenditures on new business jets in the next five years.
The longer-range forecast through projects a 3 to 4 percent average annual growth rate despite the lower short-term outlook as new models and improved economic performance contribute to industry growth. Gains in five-year operator purchase plans are offset in the long-term forecast based on changes in new program timing, slower economic growth projections, and political and currency uncertainties, resulting in a moderately lower overall outlook.
The 32 percent rate returns the BRIC composite to a rate exceeding the world purchase plan rate.
These purchase plans would reverse several years of decline. Brazil remained a bright spot by recording the strongest new aircraft purchase plans in the survey from a major aircraft market, though overall buying plans rose only slightly year over year.
Asia Pacific — Despite ongoing regional tensions and government austerity initiatives, operator enthusiasm seems to be improving. Operators in Asia Pacific report new jet acquisition plans for 28 percent of their fleet over the next five years, roughly doubling from levels and reflecting optimism extending beyond the China market.
Based on the improved level of purchase plans, Asia Pacific could garner up to a 6 percent share of global new jet demand over the next five years.
Only 33 percent of Asian respondents plan to schedule their new purchases within the first two years of the five-year horizon. Middle East and Africa — Improved purchase plans were reported, which was unexpected given another year of significant political upheaval and ongoing conflict in the region in tandem with only moderately improved oil prices.
The share of projected five-year global demand attributed to the Middle East and Africa recovered to just below its historical range of 4 to 7 percent this year. In the Middle East and Africa, 21 percent of respondents said they will replace or add to their fleet with a new jet purchase, up from 16 percent last year but still below the overall world average.
Considerable strength was present in the oil-producing nations and South Africa.
Operators responding to the survey seem to be looking past current regional concerns, with potential buyers in the region scheduling their purchases sooner in the next five-year window compared with last year, with 49 percent of purchases planned before These improved survey responses appear at odds with the obstinate nature of the issues facing the region.
Latin America — results pulled back in line with the world average, but planned acquisitions remain more front-loaded than the world average. Slightly higher Brazilian purchase plans partially offset broader declines from other countries.
Some of the larger traditional markets in the region reset purchase plans to lower levels this year, particularly those linked strongly to commodities markets. Resilience in the Brazilian operator base helped offset some of the darker mood elsewhere in the region.
An estimated 65 percent of projected demand comes from North American operators, up 4 points from the survey. Though buying plan rates are just under the overall world average, the fleet and operator base have expanded, supporting solid demand levels.
Europe — Despite operators still contending with sluggish growth and elevated political tensions, the uncertain effects of the Brexit vote, a refugee and migrant surge, and depreciated currencies, new jet purchase plans actually improved.
Despite the improved new jet purchase plans. This outcome is due in large part to the fact that the European fleet has not expanded in recent years. Many aircraft have migrated to other regions, resulting in an active fleet that is slightly lower despite an infusion of new jet deliveries.
A comparison of the planned timing for European purchases indicates uneven proportions of demand in the next three years of the five-year window, with about 26 percent allocated through followed by a dip to 15 percent each in andsuggesting a cautious approach to timing the replacement of expansion of the fleets with new acquisitions.
On a positive note, operators responding to the survey report they plan to increase aircraft usage in the next 12 months to a modest extent. With respect to the used jet market: Meanwhile, asking prices continue to drift lower. Inthe total number of recent model jets less than 10 years old listed for resale rose significantly to about aircraft, excluding personal jets and business liners.
In proportion to the level of overall listings, the share of recent model jets for sale has risen noticeably. Operator respondents reduced their used jet acquisition plans by about 8 points, equating to 24 percent of their fleets in the next five years. The decline in used jet purchase plans clearly aligns with the expansion of used inventory for sale and continued price pressure on used jets.
Weaker used aircraft purchase plans may slow the pace of aircraft upgrades. Making an Impact on Business Decisions This annual outlook reflects topical operator concerns but also identifies longer-cycle trends that Honeywell uses in its own product decision process.Business jet is a jet aircraft generally used for private purposes, parcel deliveries, transportation of small group of people by government officers, public bodies and armed forces.
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Latest news, expert advice and information on money. Pensions, property and more. Every major industry was once a growth industry. But some that are now riding a wave of growth enthusiasm are very much in the shadow of decline.
The Global Business Aviation Outlook forecasts up to 8, new business jet deliveries worth $ billion from to , which represents a 6 to 7 percent reduction from the values noted in .
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