LAS VEGAS, Nov. 15, 2015 /PRNewswire/ -- As a slow growth economic environment takes hold across many global markets, the business aviation industry is not immune to its impact. In its 24th annual Global Business Aviation Outlook released today, Honeywell Aerospace (NYSE: HON) forecasts up to 9,200 new business jet deliveries worth $270 billion from 2015 to 2025, with a 3 to 5 percent reduction over the value noted in the 2014 forecast.
"While emerging markets like Brazil continue to be a bright spot for business aviation over the medium term, we have seen weaker demand across other key growth markets, which may affect near-term order and delivery levels," said Brian Sill, president, Business and General Aviation, Honeywell Aerospace. "And while the sluggish economic growth and political tensions are driving a more reserved approach to purchasing, we are seeing operators invest in retrofits and upgrades for their existing aircraft, especially around connectivity, boosting aftermarket opportunities."
Key global findings in the 2015 Honeywell outlook include:
Breakdown by Region
Brazil, Russia, India, China (BRIC) Slight improvements in Chinese and Russian purchase plans compared with last year are not enough to support an improved overall BRIC outlook.
Asia Pacific Disappointing growth figures from several major regional economies, ongoing regional tensions and government austerity initiatives dampen operator enthusiasm.
Middle East and Africa Slightly lowered purchase plans were reported, which is not surprising given another year of significant political upheaval and ongoing conflict in the region in tandem with low oil prices.
Latin America The 2015 results remain above the world average, and planned acquisitions remain more front-loaded than the world average.
North America New aircraft acquisition plans in North America are very important given the region's size and the unsettled conditions elsewhere around the world.
Europe Operators are still contending with sluggish growth and increased political tensions, a refugee and migrant surge, and depreciated currencies.
Used Jets and Flight Activity
Turning to used jets and flight activity, over the course of the past year the pace of flight activity recovery has weakened somewhat. Ground lost by operators during the 2009 recession still remains to be recaptured. With respect to the used jet market:
Making an Impact on Business Decisions
This annual outlook reflects topical operator concerns but also identifies longer-cycle trends that Honeywell uses in its own product decision process. The survey has helped bring about investments such as designing and developing flight efficiency upgrades, optimized propulsion offerings, innovative safety products, and enhanced aircraft connectivity offerings. It also contributes to Honeywell's business pursuit strategy and helps position Honeywell consistently on high-value platforms in growth sectors.
Methodology
Honeywell's forecast methodology is based on multiple sources including, but not limited to, macroeconomic analyses, original equipment manufacturers' development plans shared with the company, and expert deliberations from aerospace industry experts. Honeywell also taps into information gathered from interviews conducted during the forecasting cycle with over 1,500 nonfractional business jet operators worldwide. The survey sample is representative of the entire industry in terms of geography, operation and fleet composition. This comprehensive approach provides Honeywell with unique insights into operator sentiments, preferences and concerns, and provides considerable insight into product development needs and opportunities.
Supporting Resources
Honeywell Aerospace products and services are found on virtually every commercial, defense and space aircraft, and its turbochargers are used by nearly every automaker and truck manufacturer around the world. The Aerospace business unit develops innovative solutions for more fuel-efficient automobiles and airplanes, more direct and on-time flights, safer flying and runway traffic, along with aircraft engines, cockpit and cabin electronics, wireless connectivity services, logistics, and more. The business delivers safer, faster, and more efficient and comfortable transportation-related experiences worldwide. For more information, visit www.honeywell.com or follow us at @Honeywell_Aero and @Honeywell_Turbo.
Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. For more news and information on Honeywell, please visit www.honeywellnow.com.
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