Up to 7,400 new business jet deliveries worth $238 billion are likely from 2022 to 2031, up 1% in deliveries from the same 10-year forecast a year ago, according to Honeywell's 30th annual Global Business Aviation Outlook forecast. 

 

In 2021, surveyed business jet operators reported a sharp increase in used jet purchase plans, 12% above last year's report, equivalent to 800 additional used business aircraft, it said. 

 

Business aircraft manufacturers also announced a strong increase in jet orders, indicating that the industry has almost completely shaken off the effects of the Covid-19 pandemic.

 

"The increased demand for used jets is estimated at more than 6,500 units over the next five years, putting pressure on an already record low inventory and driving additional demand for new jets," said Heath Patrick, President, Americas Aftermarket, Honeywell Aerospace. 

 

"Our latest operator survey results support continued private jet usage growth, as more than 65% of respondents anticipate increased business jet usage in 2022. Despite the ongoing challenges presented by the pandemic, flight hours have recovered and grown beyond pre-pandemic levels. The overall health of the business jet market is strong, and growth is expected to continue."

 

Key findings in the 2021 Honeywell Global Business Aviation Outlook include:

* Purchase plans for used jets show an increase in this year's survey. Operators worldwide indicated that 28% of their fleet is expected to be replaced or expanded by used jets over the next five years, up 3 percentage points compared with survey results from 2020. Business jet deliveries in 2022 are expected to be up 10% from 2021 in terms of units billed.

* The longer-range forecast through 2031 projects a 3% average annual growth rate of deliveries in line with expected worldwide long-term economic growth.

Five-year purchase plans for new business jets are down 2 percentage points compared with last year's survey. This can be attributed to uncertainty around the Covid-19 Delta variant at the time of the survey. The decrease is driven by fewer replacements in the fifth year; however, fleet additions grew by 1 percentage point.

* The sharp increase in demand for used jets, coupled with a lower-than-ever inventory of used aircraft available for sale, will inevitably drive additional demand for new-build business jets. Among those with purchase plans of new business jets over the next five years, 29% of purchases are expected to occur in the next two years. This is just 1 percentage point lower than last year's survey.

* Operators plan to make new jet purchases equivalent to about 14% of their fleets over the next five years as replacements or additions to their current fleet.

Larger-cabin, heavy aircraft classes are expected to account for more than 72% of all expenditures of new business jets in the next five years.

 

Minimal ongoing COVID-19 impact in 2021:

* 9 of 10 operators in the survey said their new or used jet buying plans have not been postponed by the ongoing Covid-19 pandemic. Nearly 100% of 2021 respondents said that they had not cancelled and do not plan to cancel a delivery on a new aircraft.

* Year to date, business aviation usage trends point to a nearly 50% increase in flight hours in 2021 versus 2020, roughly 5% above 2019 (pre-COVID). 

65% of respondents globally expect to operate their business jets more frequently in 2022 versus 2021.

* 2021 survey respondents are not signaling sales of late-model aircraft due to Covid-19. Specifically, only 4% of all respondents in the survey are planning to sell one or more aircraft without replacement in the next five years compared with 10% in last year's survey.  

* Very few respondents (6%) reported that conditions for their flight departments had worsened in 2021.

 

The survey marked a five-year low when it comes to purchase plans in 2021 in the Middle East and Africa (MEA) region.

 

Nine per cent of respondents said they will replace or add to their fleet with a new jet purchase, down from 16% last year. About 13% of operators responding to the survey plan to schedule their new purchase within the first two years of the five-year horizon, down from 46% a year ago.

 

The share of projected five-year global demand attributed to MEA remains at 4%, in line with the historical range of 4% to 6%, it said. - TradeArabia News Service