Jet makers forecast bleak future

JEDDAH — The demand growth projections for the Global Business Jet market for 2016 are not too bright with a weaker global macroeconomic outlook and complex as well as challenging global geo-political environment amid a challenging & difficult market scenario dominated by a host of complex economic challenges & pressures across key emerging markets, namely, Brazil, China & Russia which has impacted the demand for new business jets originating from these markets significantly as of late, the 2016 edition of the report provides a Comprehensive & Insightful Comparative SWOT Framework Analysis and analyzes the Near to Medium Term Strategy Focus for the Global Top 5 Business Jet Manufacturers said. However, services, especially, systems upgrade, MRO & aircraft customization are likely to drive slight to moderate growth over near term. The market demand for business jets is likely to improve slightly in 2017 and significantly from 2018 onwards. The market fundamentals & long term demand drivers for business jets remain robust & firmly in place indicating towards sustained, steady demand growth for business jets over medium to long term. Additionally, the market dynamics for business jets are likely to witness major transformation with the era of supersonic business jets likely to become a reality towards the early 2020s with a number of industry OEMs, led by Gulfstream & Aerion, actively pursuing R&D towards development of a range of supersonic flight technologies capable of enabling feasible supersonic flights while meeting regulatory requirements simultaneously. The Global Business Jet market continues to make slow progress on the recovery path spearheaded by continued strong economic growth momentum in the US, the introduction & certification of new business jet programs, especially, in the super midsize segment by the industry OEMs and strong fleet utilization & upgrade activity in a favorable oil price environment that has bolstered operator profitability. The latest aircraft programs; incorporating cutting edge technologies & innovations; have brought in enhanced performance, safety & optimized operating economics while a sustained low oil price environment continues to boost fleet utilization & profitability across operators driving aftermarket sales & services revenues for the industry OEMs. The global macroeconomic environment, however, remains difficult marked by financial markets volatility, continued weakness in commodity prices, plummeting of crude oil prices and continued geo-political conflict. The US economy continues to prove itself as the stable cornerstone of the global economy with steady economic growth momentum followed by EU which, too, continues to make slow economic recovery. The economic growth in China has slowed down to the lowest rate in over 25 years accompanied by continued financial markets volatility as the country strives to transition to a more consumption driven economy with limited reliance on manufacturing & heavy industries which has impacted the growth significantly. Brazil & Russian economies, on the contrary, have been impacted severely by the energy sector downturn and are in recession, in addition, to the ongoing political crisis in Brazil with pressures likely to prevail across these economies over near term. The OECD & IMF have already issued stress signals and have cut their global economic growth forecasts for the global economy for 2016 and the IMF has described the global economy as being highly vulnerable to adverse shocks.