Business aviation orders are likely to continue to see slow growth, according to a report released this week by Honeywell Aerospace.
About 8,600 new business jet deliveries worth $255 billion are forecast through 2026. That’s 6 to 7 percent less than the values predicted in last year’s forecast.
The Global Business Aviation Outlook report attributes slow industry growth, especially in the next couple of years, to political uncertainties and slow economic growth in markets across the globe.
“We continue to see relatively slow economic growth projections in many mature business jet markets,” said Brian Sill, president of commercial aviation for Honeywell. “While developed economies are generally faring better, commodities demand, foreign exchange and political uncertainties remain as concerns.”
One silver lining in the report is that the industry is predicted to fare better in the midterm, with more than half of new business jet purchases expected to be made from 2017-2019 due to interest in new model entries.
The report also found that more than 85 percent of money spent on business jets will be put toward large bizjets, from super midsize to business liners, continuing an operator trend seen in past years.
North American orders continue to make up the bulk of the business jet demand, according to the report. Sixty-five percent of the projected demand comes from North American operators, an increase of 4 percentage points from last year.
