Honeywell: Bizav Recovery Expected in 2012
After four years of decline, business aviation is poised for moderate recovery beginning in 2012, according to Honeywell Aerospace’s annual Business Aviation Outlook, released yesterday. Honeywell forecasts that deliveries of 600 to 650 new business jets in 2011 will reflect a decline of 15 percent below the 732 aircraft delivered last year, while deliveries in 2012 are expected to rebound to a level still less than 700 airframes, though improved over this year’s total. Overall, from 2011 to 2021, the company predicts that up to 10,000 aircraft worth $230 billion will be purchased. This represents approximately a 2-percent increase in total expected sales compared to the 10-year projections from the 2010 Honeywell forecast. The company cites several leading indicators pointing to a modest recovery next year, including a climb in positive net aircraft orders in the first half of the year; rising business aircraft flights worldwide; robust demand for large-cabin, ultra-long-range jets; declining supply of late-model pre-owned aircraft; strong near-term demand for aircraft from the BRIC (Brazil, Russia, India, China) countries; and five-year purchase plans that suggest order intake should strengthen in 2012 and 2013. This is the 20th edition of Honeywell’s annual forecast.