Honeywell Reports 7,600 New Business Jet Deliveries Worth Nearly $250 Billion Expected Over Next 10 Years
Strong support for short-term growth and continuing impact during the mid- and long-term is the forecast for new business jet deliveries, according to Honeywell’s 28th annual Global Business Aviation Outlook. "Production ramp up on many new business jet platforms are expected to lead to a 7% increase in deliveries in 2020, following a strong projected growth in 2019 over 2018 aircraft deliveries," says Heath Patrick, Honeywell Aerospace president, Americas Aftermarket. Overall, Honeywell is predicting up to 7,600 new business jet deliveries from 2020 to 2029 worth $248 billion, a 1 to 2% decrease from 2018’s 10-year forecast.
The Shift To Used
Honeywell’s report indicates operators will make new jet purchases equal to roughly 17% of their current fleets across the next five years as replacement or additions, a 3% decrease from 2018. Operators also plan to focus on larger-cabin aircraft classes, with such aircraft representing more than 71% of planned new business jet expenditures in the next five years. Notably, operators expect to replace or expand 32% of their fleet with used jets over the next five years, an 8% increase from 2018.
For North America, new jet purchase plans fell 2% for 2019. New jet purchases over the next five years are expected to replace or supplement 15% of the North American fleet. Purchase plans for used jets, meanwhile, were “significantly higher” for 2019, rising 11% from 2018. “A full one-third of the fleet is expected to be replaced or supplemented with a used jet over the next five years,” says Honeywell. “That is the highest percentage measured in the past five years of the survey.”
“Very Good Prices”
Worldwide, Honeywell says used jet purchases for 2019 were higher in all regions except Europe. The significant increase in purchase plans for used jets for 2019 could indicate that respondents anticipate that with “the expected increase in new aircraft deliveries in the short term, a greater number of young used aircraft will be available for sale at very good prices,” Honeywell reports. Notably, 15% of survey respondents say they’ll transfer from the new to the used jet market in 2019, a 3% increase on the survey average across the last five years.
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Source: Honeywell
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