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.