Slow but steady recovery is the byword for the business jet manufacturing industry, with many executives declaring that the 2002-03 downturn is over.

And while those tough times may well be over, the current state of the business jet market is nevertheless best described as tenuous. The mood at many manufacturers seems to be one of cautious optimism, as seen at the National Business Aviation Assn. (NBAA) convention and exhibition last fall.

Due to the recent spate of well-publicized corporate scandals, business practices have come under greater scrutiny by both company shareholders and the media. This could result in a hesitation on the part of some companies to acquire aircraft for the first time, or to add to their fleets, through purchase or a fractional share, no matter how justifiable the purchase may be. Also, at a number of corporations, policies regarding use of the firm's business aircraft are receiving greater attention.

Other factors that can have a negative impact on the business jet market include environmental restrictions and limitations on airport access. Local noise regulations and airport capacity constraints weigh heavily on business jet operators.

Overall, though, the business jet industry seems to have survived the downturn in reasonably good shape. Order backlogs remain healthy, due partly to a buildup of orders for several models that are still in development or have recently entered service. In addition, a number of manufacturers have been reporting increased sales levels since late 2003. Barring a serious disruption, order intake should further accelerate in 2005.

The years 2002 and 2003 were difficult ones for business jet manufacturers, especially following a nine-year expansion. Production declined by double-digit percentages both years. Several customers chose to defer or cancel planned deliveries. And the results for 2003 were exacerbated by temporary production shutdowns at some key manufacturers.

The next few years will see initial deliveries of a number of new business jets and derivatives. These include the Bombardier Learjet 40 XR; Cessna Mustang, CJ1+ and CJ2+; Dassault Falcon 7X; Eclipse 500; and Gulfstream G150, G350 and G450. Deliveries recently began of several other new jets and new derivatives, such as the Bombardier Challenger 300, Cessna Citation Sovereign and Gulfstream G550.

Meanwhile, airliner manufacturers Airbus and Boeing have moved into the business jet arena by marketing corporate-configured versions of narrow-body transports. In a joint venture with General Electric, Boeing builds the 737-based Boeing Business Jet (BBJ). Airbus has developed the Airbus Corporate Jetliner (ACJ) version of its A319. Both directly compete with the Bombardier Global Express and Gulfstream G550.

One of the factors driving the business jet market is growing frustration with travel on commercial airlines. Polls and surveys, as well as considerable anecdotal evidence, indicate that many corporate executives resent time spent waiting for commercial flights at airports, seeing it as lost productivity.

The inconvenience and frequent delays of airline travel increasingly may cause companies to turn to business aircraft to help solve at least part of their air transportation needs. Many companies recognize that business aircraft are tools to enhance productivity. Through point-to-point, on-demand, private transportation, the use of business aircraft can result in considerable time savings. The need for connecting flights disappears, while the time spent at airports is minimized as companies can control their employees' travel schedules. Employees also can use travel time more effectively, as business jets provide quieter working environments than do commercial flights. Corporations also use business jets due to personnel safety concerns and to project themselves positively.