Bizjet Prices Could Wobble This Year

Bombardier stays confident despite industrywide drop in business aircraft deliveries.

After aligning the company’s outlook with the world’s macro-economic trends, Bombardier says it’s still confident about the future of the business aviation market. The Canadian aerospace builder’s 10-year forecast predicts competition for sales, spurred by a 10 percent drop in total aircraft deliveries worldwide, and it’s uncertain how that will affect prices.

In 2015, the industry delivered approximately 607 airframes. The company sees total airframe deliveries plunging to between 540 and 560 for 2016. Over the next 10 years, Bombardier believes the majority of new aircraft orders will emerge from the light aircraft sector, followed by medium and large jets.

The manufacturer said some 8,300-business jets will be delivered by 2025 with nearly 4,000 of those airframes headed for North America and another 1,530 destined for the European market, based on nearly 1,000 worldwide airframe retirements.

Because the company strongly correlates aircraft orders to the strength of gross domestic product (GDP) numbers, as well as stock market returns, Bombardier is expecting little from the Chinese market due to a nearly 6 percent decline in that nation’s GDP this year.


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