Text size:

  • Small
  • Normal
  • Large

Sales of business jets poised to top $250bn over next decade

Business jet sales are to top $250bn over the next decade as buyers look to trade up to bigger planes.

Business jet sales are set to top US$250 billion over the next decade as buyers look to trade up to bigger planes.

Honeywell Aerospace says 9,250 of the aircraft will be delivered between this year and 2022.

Larger planes will constitute more than 80 per cent of the orders, with buyers focusing on the super mid-size and ultra-long range jets.

The United States-based aircraft components maker based its conclusions on more than 1,500 interviews with business-jet operators, macroeconomic analyses and studies of manufacturers’ development plans.

“The trend toward larger-cabin aircraft with ever-increasing range expectations and advanced avionics is seen more strongly than ever in this year’s survey,” said Rob Wilson, Honeywell Aerospace’s president of business and general aviation.

Buyers in the Middle East and other emerging markets tend to favour bigger jets, say analysts.

About 26 per cent of Honeywell’s survey respondents in the Middle East and Africa said they planned to replace or add a jet to their fleet, down from 32 per cent last year.

“The level of purchase plans is near the world average even though 2013 has been a year of significant political upheaval and ongoing conflict in the region,” Honeywell said.

“Despite the regional distress, operators in the region indicate their purchases may happen sooner in the next five-year window than expected last year, with about 47 per cent of purchases planned before 2016.”

Business-jet operators in Asia-Pacific said they planned to buy planes that would make up 24 per cent of their fleet. That is below last year’s reported figure of 34 per cent and is below the world average. In Latin America, operators said they expected 39 per cent of their fleet would be replaced or be augmented with new jet purchases, unchanged from last year’s result.

Over in North America, the world’s largest business-jets market, purchase plans have improved to the world average of about 28 per cent, after averaging about 25 per cent for the past six years.

In contrast, the market in Europe has declined 25 per cent, from the 30 to 33 per cent levels achieved in the previous three surveys.

However, Mr Wilson said there was reason to be optimistic about the global industry’s prospects.

“We continue to see underlying macro[economic] trends that support potential demand for business jets, making the industry’s long-term prospects attractive.”


Back to the top

More articles

Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.


To add your event to The National listings, click here

Get the most from The National