Things appear to be on the mend in the business jet market, says Brian Foley, president of Brian Foley Associates. But 2009 will go down as a year “the business jet manufacturers would like to forget,” he says.
I agree. The year has been one of the most challenging for new business jet orders and on Wichita manufacturers.
The industry could end the year with more order cancellations than new orders, Foley said.
Cancellations have subsided, but Foley warns to that more fallout may lie ahead as more aircraft progress payments can’t be met.
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Some buyers will have to scramble to find financing to make their next progress payment on jets that are nearing final delivery, he says. They’ll find tight credit markets.
“The easy credit culture is gone,” Foley notes.