Honeywell's closely watched forecast for the corporate jet market predicted a slightly weaker global demand for new business jets and increasing competition from the used market.
Honeywell's Global Business Aviation Outlook released Oct. 8 at the start of the National Business Aviation Association's annual convention in Las Vegas said global economic and political uncertainty, combined with low commodity prices and stiff competition from the used-jet market, will restrain new aircraft deliveries.
"Declining used aircraft prices, continued low commodity prices, and economic and political uncertainties in many business jet markets remain as near-term concerns for new jet purchases," said Ben Driggs, a Honeywell Aerospace executive. "That said, there are several new and exciting aircraft models coming to market which will drive solid growth in new business jet purchases in the midterm and long term."
Honeywell estimates up to 8,300 new business jet deliveries valued at $249 billion will take place in the next 10 years.
Other highlights of the report estimated:
In the used-jet market, asking prices declined about 7 percent this year and are still falling. Used jet inventory has dropped, but sales remain soft.
"We expect roughly similar delivery levels in 2018 compared with 2017," Driggs said.