Press Release
Contact: Raymond Jaworowski, Senior Aerospace Analyst
Phone: (203) 426-0800
Web site: www.forecast1.com
E-mail:
ray.jaworowski@forecast1.com
Forecast International, Inc.
22 Commerce Rd. Newtown, CT 06470 USA
FOR IMMEDIATE
RELEASE
Business Jet Production Set for Recovery in 2004
FARNBOROUGH, U.K. [July 19, 2004] — Forecast International, in a new study titled "The World Market
for Business Jet Aircraft," projects that a total of 10,809 business jets will
be produced between 2004 and 2013. The value of this production, in constant
2004 U.S. dollars, is estimated at some $135 billion.
Following two difficult years (2002 and 2003) that saw
double-digit declines in business jet production, the business jet industry
appears poised for a slow but steady recovery. The mood at many business jet
manufacturers currently appears to be one of cautious optimism.
Data for the first quarter of 2004 already indicate that
business jet production is up nearly 14 percent compared to the same period in
2003. While this pace is expected to slow as the year proceeds, 2004 is
nevertheless shaping up as the year that growth resumes in business jet
production. Forecast International predicts that business jet production will
indeed begin rising in 2004, and will continue increasing through most of the
next 10 years.
The study analyzes the reasons why various companies use
business jets, and the benefits of such use. According to Raymond Jaworowski,
a senior aerospace analyst at Forecast International, "Companies that
utilize business aircraft can control the travel schedules of their
employees." By providing point-to-point, on-demand transportation, the
use of business aircraft can result in significant time savings to employees.
The need for connecting flights disappears, while the time spent at airports is
considerably reduced.
The market leader in unit production during the 2004-2013
forecast time period is projected to be Cessna with production of 3,268
business jets, representing a market share of 30.2 percent. Cessna will be
followed by Bombardier (1,699 aircraft; 15.7 percent) and Eclipse Aviation
(1,317; 12.2 percent). Gulfstream and Raytheon are expected to tie for fourth
place, with production of 1,083 business jets each, which translates into a 10 percent
market share for each.
When the market is measured in U.S. dollars, Gulfstream is
expected to take the lead spot, with production worth $32.8 billion, a 24.3
percent share. The Savannah-based company will be followed by Bombardier
($32.5 billion; 24 percent), Dassault ($22.3 billion; 16.5 percent), and Cessna
($22.2 billion; 16.4 percent).
One of the more dynamic segments within the business jet
market is expected to be the entry-level segment, which generally consists of
the smallest business jets that are on the market. This segment not only
includes such aircraft as the Cessna CJ1/2/3 and the Raytheon Beechcraft
Premier I, but also includes new, so-called "personal jets" such as
the Cessna Mustang and the Eclipse 500. These latter two aircraft are expected
to provide much of the growth in the entry-level category during the next 10
years.
Another dynamic market segment is expected to be the
long-range business jet class. Among the aircraft in this segment are several
new models that either just recently entered service (the Gulfstream G500), or
are not yet in service (the Bombardier Global 5000, the Dassault Falcon 7X, and
the Gulfstream G450).
Forecast International, Inc., is a leading provider of
Market Intelligence and Analysis in the areas of aerospace, defense, power
systems and military electronics. Based in Newtown, CT, USA, Forecast
International specializes in long-range industry forecasts and market
assessments, including regular 10-year forecasts. Its products are utilized by
strategic planners, marketing professionals, military organizations, and
governments worldwide. To arrange an interview with Forecast
International's analysts, please contact Monty Nebinger (203-426-0800,
monty.nebinger@forecast1.com).
