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Sales of Business Aircraft Grounded Even With Increased Flights


Tuesday, May 4th, 2010

Sales of aircraft in general is stalled this year, and business planes are no different, even though there will be an increase in flights because of ongoing excess capacity in the sector.

Assuming there is an eventual global economic recovery, an increase in demand for business jets is projected to come in about 12 to 18 months.

Aircraft manufacturers stated at the annual European Business Aviation Conference and Exhibition that they are looking for an upswing from 2011 to 2013. If it's on the latter end, it could be a tough couple of years for the industry as a whole, extending the dismal sales of the last two years.

The problem is excess capacity, and until that's used up, there's little reason for airlines to order new aircraft, and that will continue to be the case until it's filled up.
 
While there have been reports of increased business flights so far in 2010, with a 5.2 percent rise in Europe and a 12 percent increase in America for March, it has to be taken in light of how bad last year was during the same time, so while improvement is positive, it's not that impressive when measured by business flights in past years.

In the short term Europe is expected to lead the way in new orders for business jets and aircraft, possibly ordering new planes as early as 2011.



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: aircraft sales , business aircraft , business travel