Travel Industry News at TravelNewsAsia.com since 1997. Interviews, podcasts, videos, pictures and more
Thu, 8 October 2020

Business Jet Usage Expected to Fully Rebound by Mid-2021

Honeywell’s 29th annual Global Business Aviation Outlook forecasts up to 7,300 new business jet deliveries worth $235 billion from 2021 to 2030, down 4% in deliveries from the same 10-year forecast a year ago.

Despite the dip, 4 out of 5 business jet operators in the survey indicate that purchase plans have not been affected by the ongoing global COVID19 pandemic. Short-term reductions in both deliveries and expenditures due to the pandemic aren’t expected to have a lasting impact on the business jet industry.

“Business jet usage is expected to rebound to 80% to 85% of 2019 levels in the 4th quarter of 2020 and fully rebound by the middle of 2021, indicating demand for business jet travel is returning after the global pandemic caused a slowdown in the industry earlier this year,” said Heath Patrick, president, Americas Aftermarket, Honeywell Aerospace. “The information we gleaned from operators shows a less than 1% decline in five-year purchase plans, so despite the short-term effects of the pandemic, we don’t expect long-term changes to purchase plans or to the overall health of the business jet market.”

Luxurious seating onboard a Dassault Falcon 8X. Picture by Steven Howard of TravelNewsAsia.com Click to enlarge.

Specifically, in the Asia Pacific region, purchase plans are stable, largely unchanged from last year.

• Operators in Asia Pacific report new jet acquisition plans for 14% of their fleet over the next five years.

• Based on the expressed level of purchase plans, Asia Pacific remains at a 10% share of global new jet demand over the next five years.

• About 30% of respondents in Asia Pacific plan to schedule their new purchases within the first two years of the five-year horizon, compared with 40% a year ago.

“Despite being at the centre of the pandemic, we are seeing that the business jet demand in the Asia Pacific region remains stable,” said Amit Kaul, leader, Business & General Aviation, Asia Pacific, Honeywell Aerospace. “Business jets are an alternative solution to commercial air travel, as the industry is dealing with flight restrictions, quarantine, and social distancing rules. We have seen how the market has withstood the challenges from past crises and we remain cautiously optimistic in region’s potential to bounce back.”

Key findings in the 2020 Honeywell Global Business Aviation Outlook

• Five-year purchase plans for new business jets are down less than one percentage point compared with last year’s survey.

• Among those purchase plans of new business jets over the next five years, 30% are expected to occur in the next two years. This is 5 percentage points lower than last year’s survey, due mainly to near-term uncertainty.

• Business jet deliveries in 2021 are expected to be up 13% from a COVID-impacted 2020.

• Operators plan to make new jet purchases equivalent to about 16% of their fleets over the next five years as replacements or additions to their current fleet, in line with 2019 survey results.

• Operators continue to focus on larger-cabin aircraft classes, from large cabin through ultralong- range aircraft, which are expected to account for more than 70% of all expenditures of new business jets in the next five years.

• The longer-range forecast through 2030 projects a 4% to 5% average annual growth rate of deliveries in line with expected worldwide economic recovery. This figure is higher than in 2019 due in part to COVID-related declines in 2020.

• Purchase plans for used jets show a moderate decline in this year’s survey. Operators worldwide indicated that 25% of their fleet is expected to be replaced or expanded by used jets over the next five years, down 6 percentage points compared with survey results from 2019.

Effects of COVID-19 on the industry:

• 4 of 5 operators in the survey said their buying plans have not been affected by COVID-19. Most of the operators who indicated their buying plans have been affected say they now plan to hold onto their current aircraft longer.

• 82% of respondents in North America expect to operate their business jets less frequently in 2020 versus 2019. Other regions are seeing similar declines. Global business jet usage is expected to recover to 2019 levels by the second half of 2021.

• Survey respondents did not signal sales of late-model aircraft due to COVID-19. Specifically, only 10% of all respondents in the survey are planning to sell one or more aircraft without replacement in the next five years compared with 8% in last year’s survey.

• Survey responses do not support the hypothesis that a decline in commercial travel has led to an increase in purchases of business jets. More than 95% of operators expect no change to fleet size due to a decrease in commercial travel.

Breakdown by Region

North America – Compared with last year, new aircraft acquisition plans in North America are flat.

• New jet purchase plans remain unchanged in North America in this year’s survey. Over the next five years, 15% of the fleet is expected to be replaced or supplemented with a new jet purchase.

• About 32% of operators responding to the survey plan to schedule their new purchases within the first two years of the five-year horizon. This is 4 percentage points lower than in last year’s survey.

• Purchase plans for used jets are lower, down 8 percentage points when compared with last year’s survey but back to historical levels as last year saw a five-year high.

• An estimated 64% of worldwide demand for new jets will come from North American operators over the next five years, up 4 percentage points compared with last year’s survey.

Europe – Operators have slowly been replacing aging aircraft in the fleet.

• Europe’s purchase expectations decreased this year to roughly 24% of the fleet, down 4 percentage points compared with last year’s results.

• About 24% of operators plan to schedule their new purchases within the next two years, down 6 percentage points and below the worldwide average of 30%.

• Europe’s share of global demand over the next five years is estimated to be 18%, 1 percentage point lower than last year.

Latin America – Purchase plans dipped 6 percentage points to a five-year low.

• In Latin America, 15% of the fleet is expected to be replaced or supplemented with new jet purchases over the next five years, down from 21% in last year’s survey.

• About 19% of this region’s projected purchases are planned between 2020 and 2022, lower than the worldwide average of 30%.

• Latin America will represent ~3% of the total projected business jet demand over the next five years versus 7% in last year’s survey. The decline is due to economic pessimism in the region.

Middle East and Africa – Higher purchase plans were reported, following a five-year low in 2019.

• 16% of respondents said they will replace or add to their fleet with a new jet purchase, up from 12% last year.

• Respondents plan to schedule more new business jet purchases within the first year of the survey compared with 2019. About 26% of operators in this year’s survey plan to purchase new business jets within the next year, up from 20% in last year’s survey.

• The share of projected five-year global demand attributed to the Middle East and Africa is 4%, in line with the historical range of 4% to 6%.

Used Jets

• Plans to acquire used jets in the next five years dropped by about 6 percentage points from last year’s survey. Twenty-five percent of used business jets will trade hands over the next five years, compared with a five-year projection of 31% in 2019.

Methodology

Honeywell’s forecast methodology is based on multiple sources, including, but not limited to, macroeconomic analyses, original equipment manufacturers’ production and development plans shared with the company, and expert deliberations from aerospace industry leaders.

 Honeywell also utilizes information gathered from interviews conducted during the forecasting cycle with over 1,050 nonfractional business jet operators worldwide.

The company says the survey sample is representative of the entire industry in terms of geography, operation and fleet composition.

See latest Travel News, Video Interviews, Podcasts and other news regarding: COVID19, Honeywell, Business Jets, Jets, Outlook, Forecast, Trends.

Headlines: Korean Air to Resume More Flights; Increase Services to Select Destinations  WestJet Appoints APG as Representative in South Korea; Airline to Launch YYC-ICN Flights in May  Courtyard by Marriott Hotel Opens in Fukui, Japan  Rolls-Royce to Expand Engine Build and Services Capacity in UK and Germany  United Airlines to Launch Los Angeles - Shanghai Flights; Increase LAX - HKG Service  Nine Exclusive HD Video Interviews from Routes Asia 2024 in Langkawi, Malaysia  AirAsia X Launches Direct Flights Between Kuala Lumpur and Almaty, Kazakhstan  Singapore Airlines Revamps Premium Economy Class with New Menu and Amenity Kit  Amadeus Completes Acquisition of Voxel  Minor to Rebrand NH Museum Quarter Hotel in Amsterdam, Netherlands  U-Tapao Airport (UTP) in Rayong / Pattaya, Thailand - HD Video Interview with Ampika Chadawong  IndiGo to Launch Flights Between Mumbai and Colombo, Sri Lanka  Perth Airport (PER) in Western Australia - HD Video Interview with Stephanie Juszkiewicz  China Airlines to Launch Flights Between Taipei and Seattle, USA  TUMI Launches Capsule Collection in Partnership with NEOM McLaren Extreme E Team  AirAsia Malaysia to Resume Flights Between Kuala Lumpur and Pattaya, Thailand  Thai Airways to Launch Flights from Bangkok to Colombo, Kochi and Perth  Munich Airport (MUC) in Bavaria, Germany - HD Video Interview with Michael Haeffner  Japan Tourism, World Expo 2025 and Japan Expo 2025 - HD Video Interview with Akira Watabe of JNTO  BBN Airlines Indonesia Receives Additional AOC from DGCA  Vietnam Airlines to Launch Flights from HAN and SGN to Munich Airport in Bavaria, Germany  Sabre Launches Booking Solution for New and Independent Travel Consultants  AirAsia Malaysia Launches A321neo Flights Between Kuala Lumpur and Perth, Australia  Saudi Arabia's Air Connectivity Program - HD Video Interview with Rashed Alshammari, Vice President Commercial  Lui Chong Chee to Succeed Bob Tan as Chairman of the Boards of CapitaLand Ascott Trust  Sabah Tourism Board - HD Video Interview with Julinus Jeffery Jimit, Chief Executive Officer  Berlin Airport (BER) - HD Video Interview with Simon Miller, Senior Manager Market Intelligence  IndiGo to Launch Flights Between Chandigarh and Dharamshala, India  Skyco Partners Airbus; Orders Six H175 Helicopters  Jumeirah Appoints Michael Grieve as Chief Brand Officer  Cam Ranh Airport (CXR) in Nha Trang, Vietnam - HD Video Interview with Le Thi Hong Minh  Mercure Langkawi Pantai Cenang - HD Video Interview with Hotel GM, Jasmine Keh  Courtyard by Marriott Phnom Penh Appoints Lenen Mar Porras as ADOSM  United Confirms Flights to Cebu, Philippines as Airline Expands Network  Jumeirah Soft Opens First Hotel in Saudi Arabia  IHG Signs Two Luxury Hotels in KAFD Riyadh, Saudi Arabia  Qatar Airways' NDC Content Now Available on Travelport+  Estelle Vassallo Moves to Italy as GM of Anantara Convento di Amalfi Grand Hotel  Aviation: International RPK Up 20.8% in January 2024  Amora Completes Refurbishment and Rebranding of Hotel in Brisbane, Australia  Scoot Unveils Embraer E190-E2 Routes  IndiGo to Launch Flights from Jagdalpur to Hyderabad and Raipur  Jazeera Airways Appoints Barathan Pasupathi as CEO  Marriott Signs Le Meridien Hotel in Zanzibar  IATA Reports Air Cargo Data for January 2024  BFS Receives GDP Certification for Dedicated Pharma Handling Facility at BKK  Solomon Islands Welcomed 26,036 Visitors in 2023; Positive Outlook for 2024  Vietjet Signs MOU with Airbus for 20 A330-900 Aircraft  Hong Kong Airport Reports January 2024 Passenger and Cargo Numbers  Malaysia Aviation Group Becomes Official Airline Partner of MATTA Fair 2024  AirAsia Malaysia Launches Flights Between Kota Kinabalu and Shanghai, China  Taiwan's Starlux Airlines Orders Five Airbus A350 Freighters and Three A330neos  United Airlines to Resume Flights to Tel Aviv, Israel  Hahnair Appoints Stephen Chung as Regional Vice President Asia Pacific  Korean Air Cargo Expands Partnership with Vienna Airport  IndiGo to Launch Daily Flights Between Bengaluru and Bali, Indonesia  Thai Airways Confirms Boeing 787-9 Order  SkyScape Becomes Eve Air Mobility's First Urban ATM Customer in Japan  Royal Brunei Airlines Orders Four Boeing 787-9 Aircraft  TransNusa Airlines Rebranding as a Premium Service Carrier  Moxy Hotel Opens in Bangkok, Thailand  Peninsula Bangkok Appoints Masahisa Oba as Managing Director  Silk Avia Takes Delivery of First New ATR 72-600 Turboprop Aircraft in Central Asia  Korean Air to Enhance Retailing Strategy with Accelya's FLX Platform  Rohit Pandey Returns to Minor as GM of the Anantara Jaipur Hotel  Marriott Soft Opens First Moxy Hotel in Malaysia  AirAsia X to Launch Flights Between Kuala Lumpur and Almaty, Kazakhstan on 14 March  Malaysia Airlines Opens Ticketing Outlet at Paradigm Mall in Petaling Jaya  Marriott Expands Apartments with Properties Signed in Italy, USA and Saudi Arabia  Stockholders of Hawaiian Holdings Vote to Adopt Merger Agreement with Alaska Airlines  Thailand Travel Mart Plus (TTM+) 2024 Opens Online Registration for Buyers and Sellers  Lore Group's Five Design-Led Hotels Join Global Hotel Alliance  Hilton Partners Small Luxury Hotels of the World  British Airways Using E-Logs Platform to Predict and Enhance Aircraft Maintenance Issues  Surf Air Mobility Secures Early Delivery Positions for 90 Electra eSTOL Aircraft  Nine Exclusive Video Interviews with VIPs at ASEAN Tourism Forum 2024 in Vientiane, Laos  Thai Airways to Unveil Details of Boeing Aircraft Order at Singapore Air Show 2024  Hong Kong Reports Provisional Visitor Arrival Numbers for January 2024  Accor Hotels in New Zealand to Become Gold Standard Sustainable Tourism Businesses  American Express Opens World's Largest Centurion Lounge at ATL Airport in USA  Minor Hotels Reports Record Full Year Figures  Korean Air's Acquisition of Asiana Gets Conditional Clearance from European Commission  CapitaLand Establishes CLARA Fund II; Acquires Two lyf-Branded Properties as Seed Assets  ATR Receives B-Score from CDP Climate Change  Dassault to Showcase Falcon 6X and Falcon 2000LXS at the Singapore Air Show 2024  IHG's Expanding Hotel Portfolio in Vientiane - Interview with Murali Viswanathan, CGM  Settha Palace Hotel in Vientiane, Laos - Interview with Hala Krimi, General Manager  Vietjet Launches Flights Between Saigon and Chengdu, China  Inthira Vang Vieng Hotel in Laos - Interview with Charles-David Hay, General Manager  IHG Hotels at Dubai Festival City Appoints Pranav Vohra as Cluster Commercial Director  S Vang Vieng Boutique Hotel in Laos - Interview with Sengnikone Bouphaphanh  Full Moon Island Resort in Kaoh Sdach, Cambodia - Interview with Indra Khanitha Lay Prohas  Jetstar Launches Flights from Brisbane to Osaka and Seoul  IHG to Expand Six Senses Brand to Kyoto, Japan  DiscoverLaos - HD Video Interview with Southisack Sayasavanh, Tours Director  Cosi Vientiane Nam Phu Hotel - Interview with Pasin Nopsuwan, General Manager  Hyatt Expands JdV Brand of Hotels to Goa, India  Thailand to See Increase in Chinese New Year Tourism Spend  Lao Airlines - Exclusive Video Interview with Chanthanon Khampheng at ATF 2024  Dansavanh Nam Ngum Resort in Laos - Interview with Michelle Wang, Travel Director  Marriott Hotel Opens on Gurney Drive in Penang, Malaysia  Emirates to Increase Capacity on Flights to Osaka, Japan  Michelle Lee Joins Pullman Bangkok Hotel G as General Manager  Rosewood Makes Changes to Senior Management Team  Smiths Detection to Upgrade Security at Fukuoka Airport in Japan  Standard to Open Residences in Hua Hin and Phuket, Thailand; Video Interview with Amar Lalvani  AirAsia Indonesia Launches Flights Between Jakarta and Kota Kinabalu, Malaysia  Philippine Airlines to Deploy Amadeus Traveler DNA  Mantra Club Croc Airlie Beach Completes A$8 Million Refurbishment of All 160 Guestrooms  Vietjet Wet Leases Two Aircraft to Meet Surge in Lunar New Year Travel Demand  Singapore Cruise Centre to Upgrade Tanah Merah Ferry Terminal  IHG Signs New-Build 150-Key Holiday Inn Hotel in Guwahati, India  Thai AirAsia Launches Flights from Bangkok (DMK) to Shanghai and Kaohsiung  TFE Signs New-Build Apartment Hotel in Brisbane, Australia  Ritz-Carlton Hotel Opens in Las Colinas Area of Dallas, USA  8 NTO Press Conferences from the ASEAN Tourism Forum 2024 in Vientiane, Laos  13 Exclusive HD Video Interviews from World Travel Market 2023 in London, England  5 Exclusive HD Video Interviews from APG World Connect 2023 in Monaco, France  15 Exclusive HD Video Interviews from Routes World 2023 in Istanbul, Türkiye  Electric Airport Taxis at Almaty Airport in Kazakhstan - Video Interview with Co-Founder  Pictures from Miss International Queen 2023 Transgender Beauty Pageant in Pattaya, Thailand  Exclusive Video Interviews with 17 Miss International Queen 2023 Contestants  Living With One Eye - Six Years On by Steven Howard  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS Feed - Travel Industry News  Ticker - Travel Industry News  Travel Industry News Archives  Travel Trade Shows  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Subscribe to our Travel Industry News RSS Feed Travel Industry News RSS Feed from TravelNewsAsia.com. To do that in Outlook, right-click the RSS Feeds folder, select Add a New RSS Feed, enter the URL of our RSS Feed which is: https://www.travelnewsasia.com/travelnews.xml and click Add. The feed can also be used to add the headlines to your website or channel via a customisable applet. Have questions? Please read our Travel News FAQ. Thank you.

     
Advertising
Advertising
Copyright © 1997-2024 TravelNewsAsia.com