In its briefing on last year’s sales figures, the General Aviation Manufacturers Association reported an increase in billings compared with 2007 (up 13.4 percent). But that’s where the flow of good news comes to a screeching halt. Overall the picture looks bleak, said GAMA Chairman Mark Van Tine, president and CEO of Jeppesen. “Many of GAMA’s member companies have been forced to reduce their workforce as they manage backlogs to compensate for weakness in orders,” he said. While turboprops and jets showed increases in shipments last year (16.6 percent and 15.6 percent respectively), GAMA maintains those figures represent fulfillment of orders placed well before the current economic crisis. Even those sectors face dire cutbacks this year as they struggle to retain orders. In the piston segment, 2008 showed a 20.8 percent decrease in shipments compared with 2007. Overall, shipments in all segments suffered a 7.1 percent slowdown last year, to 3,969 aircraft from 4,272 in 2007.
2008 GAMA Figures Reveal Industry Woes
Key Takeaways:
- The General Aviation Manufacturers Association (GAMA) reported a 13.4% increase in billings for 2008 compared to 2007, but described the overall outlook as bleak due to weak new orders.
- GAMA member companies are reducing their workforce as increases in turboprop and jet shipments were fulfillments of pre-economic crisis orders, with significant cutbacks anticipated for the current year.
- Overall aircraft shipments in 2008 decreased by 7.1% (from 4,272 to 3,969 aircraft), with the piston segment experiencing a notable 20.8% decline.
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