– International Demand Continues To Drive Future Industry Growth
– Near-Term Economic Factors Temper Volume of New Jet Orders
Honeywell issued the 20th edition of its annual Business Aviation Outlook, forecasting sales and delivery of approximately $230 billion in new business jets from 2011 through 2021. This represents approximately a two percent increase in total expected industry sales value compared to the prior 10-year horizon Honeywell forecasted in 2010.
For 2011, Honeywell Aerospace estimates deliveries of 600-650 new business jets, down approximately 15 percent from 732 in 2010 due to continued slow global economic recovery. While 2012 deliveries are expected to be below 700 airframes, Honeywell anticipates higher delivery levels than in 2011. While five-year buyer interest remained steady versus 2010, based on the reduced economic growth outlook and this year’s survey responses, the industry appears to be positioned to begin another period of expansion in 2012, which is consistent with Honeywell’s current industry outlook.
One bright spot is the earlier demand timing coming from Brazil, Russia, India, and China (BRIC) countries and the Middle East. Acting on these purchase plans in 2011 and 2012 is critical to providing the industry momentum as current backlogs will not sustain delivery levels indefinitely despite recent book to bill ratios exceeding one at some manufacturers.
Honeywell surveyed more than 1,500 flight departments around the world for its annual business aviation outlook.
For more information, read the press release.