Business jets are touted to be on the increase in sales for 2012 a leading global provider in avionics forecasted in its annual report.?Unit deliveries will rise 3 to 5 per cent in 2012 for models such as the Gulfstream, Honeywell Aerospace said in a press release on Saturday.
The aviation business in private jets has seen a sharp downfall since the 2009 after effects of the recession, with developed markets like the US and UK reluctant to spend more money than needed.
But Rob Wilson, President of Honeywell believes 2012 will be a turning point in the business. ?I believe 2011 did not play out as we expected to see the growth and orders being placed, so we’re shifting our hopes to 2012,? he said in a statement.
Emerging markets in Asia and the Middle East seem likely to be the recipients of these sales, as the markets are likely to be more stable in the coming 12 months.?”The classic indicator for business jet deliveries is corporate profits, which are at record levels,” said Richard Aboulafia, an aerospace analyst with Teal Group. “The problem is that people are reluctant to spend,” he added.
Sales for the smaller jets have been difficult, with likes of Cessna and Bomabrider having to cut their workforce. Deliveries of large jets rose 13 per cent from 2008 to 2010, while light-jet shipments fell 61 per cent during that time, according to data from the manufacturers’ association.
“The larger the jet, the more positive the market feeling is,” Eddy Pieniazek, director at the global aviation consultancy Ascend, said while expressing his views on aviation industry. “That small end is bouncing along the bottom and requires some more consistent economic growth to push it forward.”
On the positive side, producers of Cessna, Gulfstream and Embraer are in the process of bringing new models to bring in to service in the next two year, to bring their companies up to scratch with new demands in business jets.