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Rebuilding Phase?

Gemini Sparkle

Key Takeaways:

  • The general and business aviation industries show cautious optimism, with 1Q 2021 aircraft deliveries increasing from early pandemic lows but suggesting that pent-up demand may now be satisfied.
  • Avionics sales are slowly recovering despite recent declines, while the closure of Aerion Supersonic highlights ongoing financial challenges in developing advanced aviation projects.
  • The author theorizes a post-pandemic "reset" in travel needs, especially for business, where virtual connections are increasingly replacing physical travel, signaling fundamental changes for the industry.
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May 2021 brought three news items of interest to anyone paying attention to how the general and business aviation industries are faring as the Covid-19 pandemic winds down in the U.S. Taken together, the top story seems to be cautious optimism tempered by a healthy dose of reality and an understanding that the pandemic may usher in fundamental changes in the ways we travel.

First-quarter delivery results reported by the General Aviation Manufacturers Association (GAMA) show a welcome increase when compared to the same period of 2020, when the pandemic’s effects first began to be felt. Deliveries of new airplanes in 2020 were off by more than nine percent; 1Q 2021 numbers exceeded them, but not the subsequent quarters of 2020.

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