Strong corporate profits and increasing orders from fast-growing economies including China, India and Russia are driving continued demand for business jets, according the latest report from industry analyst Frost & Sullivan. The report: The world business jets market: investment analysis reveals that the combined earnings of the world's top 20 companies totalled $18 billion in revenues last year and is predicted to exceed $22.5 billion in 2009. "Previously, the increase in demand for business jets lagged one to two years behind corporate profit increases. At present, both the demand for business jets and the increase in corporate profits rise in tandem," says Frost & Sullivan senior research analyst Rani Cleetez. The business jet market has grown alongside corporate profits, it continues, notwithstanding various peaks and troughs due to cyclical downturns. The effect of the events of 9/11 on corporate profits has waned and profits will likely grow exponentially over the next four years.

Froast and Sullivan says 2006 marked the first time regions outside North America generated more than 50% of business jet orders, "which represents a significant shift from the past, when the USA and Canada generated about three-quarters of business jet sales", it says.

There are a number of factors that pose "formidable barriers to continued market expansion", says the report including the "constant terrorist threats, limited infrastructure, shortage of cabin-completion capacity and the lack of quality employees".


Source: Flight International