Australian Aviation — December 2017

50 AUSTRALIAN AVIATION DECEMBER 2017

by security concerns – the threat posed

by an increasingly erratic North Korea

is one such example – with operators

scaling back plans to acquire new

aircraft.

The report said new jet purchases

would account for 13 per cent of

operators’ fleets over the next five

years, down “significantly” from the

prior year.

Further, only 27 per cent of Asia

Pacific respondents planned to schedule

new purchases within the next two years.

“Impacted by regional tensions,

purchase plans are down significantly

from last year and back to 2014 and

2015 levels,” the report said.

Every region except for Latin

America recorded a decline in new jet

purchase plans in the 2017 survey.

The report was compiled with

responses from 1,500 business jet

operators around the world alongside

macroeconomic analyses and

consultation with original equipment

manufacturers and industry leaders.

The report noted asking prices

for pre-owned business jets were

still declining overall, especially for

medium and long-range aircraft.

Further, the share of recent model jets

for sale was more than 30 per cent of

OUTLOOK FOR BUSINESS JETS SUBDUED
The annual survey from Honeywell
Aerospace showed demand for new
business jets was being hit by an
uncertain economic outlook and
political environment.
Further, a very competitive market
for pre-owned aircraft was also leading
to what Honeywell Aerospace’s 26th
annual Global Business Aviation
outlook described as a “modest pace
for near-term orders”.
The Honeywell forecast is for up
to 8,300 new business jet deliveries
between 2017 and 2027 worth US$249
billion.
It continues the downward trend of
Honeywell’s 10-year forecast in recent
times, given the estimates of 8,600
deliveries in the 2016 report, 9,200
deliveries in 2015 and 9,450 in 2014.
“Declining used aircraft prices,
continued low commodities prices, and
economic and political uncertainties
in many business jet markets remain
as near-term concerns for new jet
purchases, leading to a modest growth
in 2018,” Honeywell Aerospace
president for Americas Aftermarket
Ben Driggs said in a statement.
On a positive note, Driggs said
several new models that are being
introduced in the period ahead would
support “solid growth in new business
jet purchases in the mid term and long
term”.
The report said business jet
deliveries in 2017 would fall
somewhere between 620 and 640,
representing a decline of about 30
aircraft compared with the prior year.
Honeywell Aerospace said the
pullback was largely due to slower
order rates for mature aircraft models
and a transition to new models slated
for late 2017 and in 2018.
“There are several new and exciting
aircraft models coming to market,
which will drive solid growth in new
business jet purchases in the mid term
and long term,” Driggs said.
The report said 85 per cent of
worldwide new aircraft deliveries
was expected to be in the larger-cabin
aircraft classes, including categories
from super mid-size through to ultra
long-range variants.
Honeywell Aerospace said North
America, the world’s largest business
jet market, would continue to generate
the bulk of the global sales, with the
region tipped to have 61 per cent of all
purchases over the next five years.
Closer to home, the report said the
Asia Pacific region was being impacted

Global, Dassault and Gulfstream

jets at Sydney Airport in mid-

November.SETH JAWORSKI