Keeping with the theme of a flat patch in the demand for new business jets, JetNet iQ officials unveiled their latest State of the Market report on Tuesday that projects fewer orders in the next couple of years before a rebound around 2018.
On the opening day of the National Business Aviation Association Convention in Orlando, JetNet managing director Rolland Vincent and vice president of sales Paul Cardarelli said the industry is in the “doldrums.”
“We are truly bullish on business aviation, but the fact is right now we are a bit of a challenged industry,” Cardarelli said.
Cardarelli and Vincent said that while demand is expected to be flat to lower this year and next – 660 new jet deliveries this year – they expect a recovery beginning in 2018.
“2018 looks like a very good year for the industry,” Vincent said.
Globally, there’s an oversupply of business jets in the market. That’s a function of older business jets — some as old as 40 years — still actively flying.
Until some of those airplanes are retired over the next couple of years, the oversupply will persist, affecting values of used aircraft and also forcing manufacturers to discount their new aircraft.
Add to that the economic and political uncertainty in parts of the world, and the industry faces a couple of challenging years.
Between 2016 and 2025, the industry should deliver 7,380 business aircraft worth $219 billion, Vincent said.
JetNet’s State of the Market report is based on quarterly surveys of more than 500 business jet and turboprop aircraft owners and operators in more than 50 countries.