New on the ramp
A factory-fresh Citation Latitude awaits delivery to a customer at Wichita’s recently updated and renamed Dwight D. Eisenhower National Airport
Where: Wichita, Kansas
Photographer: Mike Fizer
Ever since the recession of 2008 began, an anomaly of sorts took hold of the turbine airplane market. Sales of new big-cabin business jets—those built by the likes of Bombardier, Dassault, Embraer, Gulfstream, and even Boeing—have been remarkably strong, until recently. So far this year, big-cabin jet sales seem on track to continue a decline. “It’s the start of a trend,” says market analyst Brian Foley. “Big-cabin jet sales are getting weaker year over year, while light jets are holding their own.”
There are big reasons why. China and the emerging markets in Asia and South America are in a downturn. Large companies driven by petroleum sales have been hurt by falling oil prices. The U.S. dollar is strong against foreign currencies. As a result, large-jet manufacturers have had to trim their expectations. There have been delays and order cancellations, as well as competition from Boeing’s 737 and Airbus’ A320. All of this has prompted Bombardier to slow production of its Global 5000 and 6000 business jets, and to delay production of its Global 7000 and 8000 models.
Meanwhile, light jet sales are showing new life, propelled by sales in the United States—the world’s biggest market for all aircraft. The drop in oil prices may hurt some mega-corporations in the oil business, but it’s a welcome relief to businesses in the market for a light or medium-sized jet. And you don’t need a large jet to cover the typical route segments in North America. True, the recent economic slowdown has hurt sales of new single-pilot jets, but there are plenty of competitively priced used jets to keep that market segment active.
But don’t shed too many tears for big-jet builders. A strong fractional-ownership market is snapping up many cancelled orders. So while the General Aviation Manufacturers Association may so far report drops in 2015 shipments of new turboprops and jets, it’s the orders that presage the future. Too bad some manufacturers aren’t exactly forthcoming with that information.
—Thomas A. Horne, Turbine Pilot Editor
