Business Jet Industry May Emerge Stronger Than Ever

October 13, 2011 by admin

By Molly McMillin

http://www.kansas.com

Last month’s wild swings in the stock market and the overall economic uncertainty is a short-term blip to the business jet industry and not a precursor to another industry free fall, aviation analysts say.

The stock market recently whipsawed as it responded to the political debate about the nation’s debt and the country’s credit downgrade. The Dow Jones industrial average had four 400-point swings in a row for the first time in its 115-year history. That volatility may result in a short period of slower sales for some business jet manufacturers, said Brian Foley, aviation consultant with Brian Foley Associates. But it also could lead to stronger demand down the road, he said.

“That means when the true recovery does take hold, it will have much more momentum,” Foley said. “There’s just so much pent-up demand out there from aircraft sales to maintenance services that people have been putting off.”

Manufacturers and their order books are stronger today than they were three years ago when the market plunged during the recession and buyers canceled droves of orders.

Their order books are of a higher caliber than they were before the downturn, Foley said. “Gone are the speculators and those that qualified for aircraft financing simply because they were breathing.”


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