The mood for the industry in Geneva is optimistic, albeit cautiously so. Virtually all of the OEMs are forecasting growth in the business aircraft market, and are clearly focused on capitalizing on the opportunities in the near term.
Several factors are contributing to this optimism. First, used aircraft inventories have fallen to levels not seen in a decade, prior to the 2009 industry recession. This is particularly important as the number of younger used aircraft, under five years of age, that typically compete with new aircraft has fallen even more dramatically than the overall market. Without the competition from used airplanes, market prices are beginning to firm for new aircraft.
Second, global GDP growth remains on target, buoying optimism for continued growth and potential new companies entering the market for business aircraft. Several manufacturers commented on first-time buyers adding to market growth. Politically, business air travel may be back in vogue in the US, buoyed by the new corporate tax laws in the US market. With continued accelerated depreciation and more cash, including international repatriation of funds, the business aircraft market is a beneficiary of new policies.
