Jet sales taxiing, might be ready for takeoff
Business-jet sales may increase worldwide starting in 2012 as emerging-market demand outweighs a sluggish U.S. economy that fueled a probable decline this year, according to projections from Honeywell International Inc., Bloomberg reported.
Purchase expectations are growing in Asia, followed by the Middle East and Africa, while the free-fall in developed markets such as North America has stabilized, according to an annual survey of 1,500 companies by Honeywell, which manufactures avionics and cockpit instruments.
Companies also have cash to spend now, compensating for individuals who might hold back amid economic uncertainty, Rob Wilson, president of Honeywell’s business and general aviation unit, said in an interview.
Replacement of aging planes has combined with international travel demand to boost potential sales of longer-range models, he said.
Customers continue to say that they still intend to buy new aircraft in the next five years, though some have pushed out the timing to the latter half of that period, Honeywell President Rob Wilson told Bloomberg.
Air-travel demand has been boosted by growing trade between Africa and China, a run-up in commodity prices and oil and the exploration of new business opportunities in those regions, he said.
Global deliveries probably will decline to 600 to 650 from last year’s 732, then climb in 2012 to less than 700, Honeywell projected.
Business-jet manufacturers are building new models with greater range to lure buyers away from the used-aircraft market. General Dynamics Corp.’s Gulfstream, Textron Inc.’s Cessna and Embraer SA are developing new planes to enter service in the next two years, Bloomberg said.