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Honeywell stated that 80 percent of the flight departments and other operators polled said that their buying plans have not been affected by the COVID-19 pandemic. Five-year purchase plans for new business jets are largely unchanged from a year ago, Honeywell said.
“Business jet usage is expected to rebound to 80% to 85% of 2019 levels in the 4th quarter of 2020 and fully rebound by the middle of 2021, indicating demand for business travel is returning after the global pandemic caused a slowdown in the industry earlier this year,” said Heath Patrick, president, Americas Aftermarket, Honeywell Aerospace. “The information we gleaned from operators shows a less than 1% decline in five-year purchase plans, so despite the short-term effects of the pandemic, we don’t expect long-term changes to purchase plans or to the overall health of the business jet market.”
Other findings and predictions from the 2020 Outlook include:
Among those planning to buy in the next five years, 30 percent say they’ll buy in the next two years. That’s 5 percent less than last year’s forecast. Large-cabin through ultra-long-range bizjets are expected to account for 70 percent of sales in the next five years. Respondents plan to purchase used jets to replace or expand 25 percent of their existing fleets over the coming five years, down 6 percent from 2019. Bizjet deliveries in 2021 are expected to increase 13 percent from 2020. 10 percent of all respondents plan to sell one or more aircraft without replacement in the next five years—compared to 8 percent in last year’s survey.
A regional breakdown noted that North American purchases will be flat compared to last year, with used aircraft purchases down 8 percent. However, 64 percent of worldwide demand for new jets will come from North America, an increase of four points from last year’s survey.
Europe’s share of total global demand in the next five years will be 18 percent, down 1 percentage point from last year’s outlook, with only 24 percent of operators planning to buy new aircraft in the next two years. That’s down 6 percent from last year and 6 percent below the 30-percent worldwide average.
In Latin America, economic pessimism should create a 4-percentage-point drop in demand over the next five years. The Asia-Pacific region should experience stable purchase plans, with respondents reporting plans to buy new jets for 14 percent of their fleet over the next
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