Business Jet Travel Headed Toward RecoveryOctober 29, 2010
 The National Business Aviation Association that represents the business jet industry held its annual convention and trade show in late October. The gathering resembled a massive pep rally to bolster the spirit of the 25,000 industry representatives, according to a piece in The New York Times. "We are out of our defensive crouch," said Ed Bolen, the head of the association, despite other research that paints a far gloomier picture. Bolen noted that flight-hours, a measure of overall business jet activity, have risen 13% over the past year. But another report released by Honeywell Aerospace notes that only 675 to 700 new business jets will be delivered worldwide this year compared to 849 last year. That report also projects next year’s number to remain below 700 jets. That is a far cry from the 1,313 jets delivered in 2008. The Honeywell report does have a healthier long-term outlook, suggesting that the business jet industry will begin to rise again in 2012 after bottoming out in 2011, according to the Times article. The economic downturn has buffeted the business jet industry and the overall negative public perception toward the industry has compounded its troubles. People were upset thinking about CEOs flying around in business jets while their portfolios tanked and they were stuck at commercial airports. This, plus the overall economic downturn, caused many companies to sell their corporate jets leading to a glut in the used-jet market, according to the articles, and a further slowing of sales for new jets. The reality, many supporters of corporate-jet travel contend, is that using jets or even helicopters can make sense for running a business most efficiently. The commercial industry’s production cuts are also affecting business jet travel. As airlines cut whole routes connecting small- and mid-sized cities, executives often need to use small jets to help their employees access these markets, according to the article. |
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