NBAA: Business jet sales remain flat despite corporate growth
Despite double digit growth for the S&P 500 over the past 2 years, business jet sales have remained flat, market analysts said during the National Business Aviation Association's (NBAA) convention in Las Vegas last week.
With the United States accounting for just 60% of new business jet deliveries, down form 75% in the 1990s according to Honeywell's Aerospace division, the US market still play a dominant role in private jet sales. The company expects business aircraft deliveries to diminish by 30 planes this year.
Manufacturers believed that sales would soar following the election of US President Donald Trump, who had promised tax breaks for large corporations. Over the past few weeks, private jets have however been under controversy in Washington and have been viewed as a sign of excess.
Trump's health and human services secretary, Tom Price, resigned after taking private flights in what spurred a nationwide controversy. Meanwhile, General Electric is also shutting down its corporate jet fleet according to Reuters.
Some on the other hand believe that flat business jet sales are caused by a large number of preowned aircrafts on the market. According to Bombardier's VP for Marketing, Brad Nolen, about 1 in 10 airplanes is currently on the market, down from 1 in 5 shortly after the financial crisis of 2008.