2013, they expect global HNWI financial wealth to recover to $48.5 trillion, after advancing at a sustained annual rate of 8.1%. They also forecast Asia-Pacific to overtake North America as the largest region for HNWI financial wealth. This is good news since many expect that China and India will probably be the next two markets to experience major growth in business aviation once the economy recovers. Economic growth and vast geography make China a promising market and the industry seems encouraged by the government’s attempts to improve the infrastructure and regulatory environment, including
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easing its air space restrictions. Once many of these political and cultural challenges are met, business aviation will be able to flourish. In India, the flexibility of their government and its openness to commerce could help the business jet market develop at a much quicker pace than even that of China’s.
terrupted decline. And according to the Aviation Research Group/ US (ARG/US), the latest business jet activity (IFR arrivals and departures) shows a continued upward trend. Flight activity was up 3.2% in November 2009 over October 2009 and when compared yearover-year, activity was up 22.7% over November 2008.
Beechcraft, and Learjet. The center now predicts the region will experience fewer than half of the 3,550 job losses that it had originally expected for this year. They cite increasing corporate profits (which they say have been growing for three quarters) as one reason for the amendment to their original predictions.
As these factors take several years to mature, industry insiders are going to be keeping a close eye on near-term indicators such as the strength of the used market and flight activity. In December, J.P. Morgan reported that used jet inventory (measured by ‘aircraft for sale as % of active fleet,’) decreased to 12.8%, its fifth unin-
In one more piece of encouraging news, Wichita State University’s Center for Economic Development and Business Research adjusted its economic predictions for 2010, including a reduction in the number of projected job losses in and around Wichita, Kansas – home to legacy business jet manufacturers Cessna, Hawker
It was by most measures a rapid descent to troubling times for this industry. Now that several positive indicators have finally emerged, some may be breathing a little easier in the new year. But, to say with absolute certainty that the industry is out of the woods would be nothing short of extraordinary.
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