As the Great Recession moves into its sixth year, the market for used business aircraft remains something of a quagmire, with some models still searching for a price bottom. But there are bright spots where values have stabilized, and inventory overall is headed in the right direction.
This year’s early round of business aviation market forecasts–from Bombardier, Embraer and Honeywell–present a mixed picture where a moderately optimistic outlook for the U.S. still fails to outweigh economic uncertainty in Europe and slowing growth in Asia.
NBAA released a new study today showing that even during the worst economic times since the Great Depression, companies that relied on business aviation outperformed those that did not. According to NBAA, the companies that use business aircraft have better shareholder value and recovered from the recession more quickly than their peers.
The only certainty is continued uncertainty when it comes to the outlook for the global economy in 2012. For business aviation at least, it used to be assumed that you had to look only at the state of the world’s major stock markets to assess the market’s prospects. But share price fluctuations tell only a small part of the story these days.
Key airspace safety and modernization efforts contained in the Next Generation Air Transportation System (NextGen) will play a vital role in spurring long-term sustained growth in air travel and the nation’s overall economic health, the FAA predicts in its annual aviation forecast.
Here’s an entry worthy of Ripley’s Believe It or Not: in the midst of the Great Recession of 2009, as U.S. jobs evaporate across the country, especially in the airline industry and particularly among skilled maintenance workers, Uncle Sam is working feverishly to fill jobs at domestic repair stations.