Large Bizjets will fare well – not so midsize
Looks like green shoots are finally appearing for the new production business jet sector.
AIN reports that Bombardier and Gulfstream are both more bullish about outlook for new-production large-cabin business jets over the next two years. Gulfstream’s parent General Dynamics chief Jay Johnson said yesterday (September 3 2009) at the Morgan Stanley global industrial conference that midsize jets will be “challenged due to high pre-owned inventory levels of midsize jets.”
Meanwhile, Bombardier president Guy Hachey told investors that cancellations are down. Both inferred that the business jet industry is “stabilizing” and that sales of new large-cabin jets are steadily rising. Johnson also noted that business aircraft service activity is on the up.
Gulfstream has a $2 billion backlog, primarily comprising large-cabin jet orders. Globals have a 29 month backlog, with Challengers standing at 17 months.
Announcements like these can only be good news for an industry hit hard by the global recession. Next month’s NBAA convention in Orlando could well prove to be a more cautiously optimistic affair than this spring’s EBACE.