Every country is experiencing economic downtown while the political stability is still questionable. All these factors will impact on the purchase of business jets starting early next year. In a survey done by the Honeywell International Inc, the sale of new jets is most likely going to fall to less than 10% in the year 2016. This negativity on the sales of business jets is seen as a reverse of the recent gains that was seen to the slowly reviving market.
The research done shows that there are many current unsettled conditions in every continent. This is forcing people and Multi Corporation to respond in a wait and see fashion. This is replicated in the purchase of businesses jets as companies are pushing the purchase to see if the market will stabilize. With this wait and see response, it impacts on the companies order and delivery of jets.
The findings come from a research of 1500 non-fractional jet buyers also showed an expectation of 625 to a new 725 purchases and delivery of jets in 2015, which is a small rise from 2014 that recorded 692 sales.
The increase in the acquisition of new business jets in 2015 has come because there is a shoot in the new Super size models, seen from the Bombardier Inc, General Dynamics, Unit Gulfstream and the Embraer. The manufacturers have also released new Cessna Jets, a medium plane that is effective in doing business.
The research also showed that the world market has the potential to buy 9200 business planes at a value of $270billion in the next coming 10 years. This is a fall from the previous 9450 jets totaling $280 billion forecasted last year. According to research done, the sales slowdown will not prompt it to reduce capacity because the slow sales are modest.
According to the lead researcher for business jets sale, it is expected that the sales will be constant, or grow at a small percentage in the year 2017, then followed by increased growth in the year 2018.
The reduced sales arise from slower economies in different emerging markets. An expected rise in the sales of business jets to fractional plane companies will reduce the decline. Besides, many companies buying the passenger planes are crossing their fingers waiting for new models to be released in the coming two years.
The purchases done by the Latin American countries are expected to remain average despite their weakening economies such as in Brazil. In European nations, North America and Asia, the sales are expected to remain flat. High valued buyers such AS China and Russia, though they buy more cannot fill the deficit.
Some companies, instead of buying, plan to upgrade the existing aircraft through cabin improvements, avionics and connection via satellite.