Heavy Discounts and Downward Price – Business Jet Market at a Glance

What’s the update in the business jet market?

– Manufacturers are providing heavy discounts on new models

– Whereas, the price for used aircraft are falling steeply

Manufacturers have somewhat trimmed their production output in the last couple of years. However, that hasn’t helped much to stop the fall in price either.

The recent cost cutting move from GE that garnered a major media attention isn’t helping boost the ‘market optimism’ either.

According to Honeywell’s latest report, new aircraft deliveries in 2017 dipped 3% from the previous year.

– Europe: 11% decline

– N. America: 9% decline expected

– Asia, Middle East, Africa: DECLINE

In simple economics terms, as supply increases and demand decreases, most probably the ‘new equilibrium’ will occur at a lower market price.

So, isn’t this the right time for manufacturers to further slowdown churning out new models and adjust to the market demand?

AviationOutlook Daily: Major aviation industry updates of the day. 


Dipesh Dhital

Dipesh Dhital

Dipesh is the founder of aviationoutlook.com and an avid follower and enthusiast of aviation/aerospace industry. He has background in aerospace engineering and MBA (Aviation Management). “I am an advocate for the new technological advancements in aviation/aerospace industry. I have been avidly following the developments in drone industry, electric aircraft as well as emerging technologies (such as AR/VR, 3D Printing, IoT, AI and Blockchain), which will have huge impact on aviation/aerospace industry in near future”.

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