Bizjet Deliveries Will Soon Recover,
Honeywell Says in Revised Forecast

The outlook for business aviation remains extremely bright with a recovery in orders likely to begin in the second half of next year, according to Honeywell's just-revised 10-year forecast.

Deliveries have slowed this year but will return to record levels in 2003-2004, the company said in a statement released today.

Demand for business aviation has held up remarkably well since September 11, given the rapidly deteriorating economic conditions since then," Honeywell Aerospace president Bob Johnson told Show News. "While new orders have slowed, demand for charter aircraft has soared anywhere from 30 to 200%, and fractional operators are continuing to hire pilots at nearly double the rate of 1999," he said.

"We've just moved the curve out to the right a little. There have been no program cancellations, and since 9/11 the OEMs are committed to providing a stream of new products into what will return to be a very positive economy," Johnson said.

The revised forecast calls for deliveries of 8,400 business aircraft over the next 10 years, valued at $130 billion-a slight downward revision from 8,900 and $136 billion forecast earlier this year. The backlog of 2,700 aircraft, worth $40 billion, has been little affected at all.

Actual deliveries will dip about 7%this year to 700 aircraft but pick up to 734 in 2002, signalling an end to the lull.

Johnson added the survey registered strong pent up demand for new aircraft that will begin to be realized as the economy begins to recover.

By John Morris