Business jets worth $170 billion to be sold in 10 years

Tuesday, May 11, 2010 As the impacts of the economic turmoil are gradually diminishing on aviation, a rally has started in the business jets market. The sector will keep its stable growth after 2012. The sector will sell 11,933 aircraft worth $170 billion within the upcoming 10 years. The economic crisis, which started in September 2008 with the collapse of Lehman Brothers, has hit business jets most in aviation. Orders were either cancelled or delayed and companies facing financial troubles sold planes for less than their actual value. The crisis hit sales of planes with small- and medium-sized body, worth $4 million to $24 million, the worst. Due to the cancellation of orders, contraction reached 42.8 percent. Manufacturers were dismissed thousands of workers and new plane projects were suspended until the recovery of the market. The disruption in large-body, long-range aircraft worth more than $25 million was less than expected. The cancellation of orders to international companies with better financial situations remained at just 4 percent. Planes such as Gulfstream G550, Global Express, Falcon 7X could find customers over their actual value in second hand. Propeller planes, which normally see lower sales compared to jets, drew high interest due to the crisis. The companies flying in short distances and abstaining from the high costs of jets oriented to turboprop engine planes such as King Air, Piaggio P180 and Cessna Caravan. The sales rose 10 percent. The research revealed that the bad days are now over. As of 2012, the sales will reach the level of golden years of 2006 to 2008, with an average of 1,300 planes delivered annually. As of 2014, the figure is expected to climb to 2,000 planes annually. Within the upcoming 10 years, a total of 11,933 planes worth $170 billion will be sold. Light business jets draw highest demand. In this market, the total sales of Cessna Mustang, Embraer Phenom 100, Honda Jet models will reach 2,929 units. The sales of medium and larger body group such as Challenger 300, 605, Embraer Legacy 600/650, Falcon 2000, 900, Citation X, Gulfstream G250 will reach 2,184 units. From passenger to business jet Meanwhile, there is an activity in the market consisting of the business jets converted from former passenger planes. Once new planes such as Boeing 787 and Airbus A350 start operations at airlines, the delivery of their business jet models will also start. Businesspeople traveling with a crowd and need larger spaces, particularly Arabs and Russians, are among the top customers for these planes. In smaller body, there are business jets such as Brazilian Embraer’s Legacy 600, Lineage 1000, converted from regional aircraft. Moreover, Avro’s planes in RJ and ATR series, which airlines sell for cheap, are purchased for $3 million to $4 million and turned into business jets with slight costs. This market is closely monitored by the businesspeople that would like to own large planes with less cost. Private plane and helicopter manufacturers competed at the European Business Aviation Convention & Exhibition, or EBACE, which was more active compared to the previous two years. There were 486 companies with 74 planes in the fair on its 10th year in Geneva. The Turkey representatives of the manufacturers were also at the EBACE. Turkish companies Gözen Group and Arkas were also among the participants. Having overcome its financial problems, Eclipse has started production again. The manufacturer, whose name is now Eclipse Aerospace, aims at partnerships with Turkish companies to produce parts. The Turkish market is getting more active with the new aircraft to be delivered in the upcoming term, such as Gulfstream G550, Global Express XRS, Falcon 7X, Challenger 850, Challenger 300, Phenom 300 and Cessna Mustang

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