16 December 2007:
Business jet orders are soaring from China, Russia, and India. According to the latest data from Frost &
Sullivan the world business jet market will reach almost $23 billion in 2009 -- an increase of 26 percent from
2006. Year 2006 marked the first time regions outside North America generated the majority (more than 50
percent) of business jet orders. This represented a significant shift from the past, wherein the United States
and Canada generated about three-quarters of business jet sales.
“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. “A close look at the growth of corporate profits and the
impressive run of the business jets market over the past three years reveals a positive correlation; strong
corporate profits are poised to continue sustained demand for business jets.”
Simultaneously, Europe has experienced an unprecedented surge in the number of multinational firms and wealthy
executives using business aircraft.
Frost & Sullivan concluded though that terrorist threats, limited infrastructure, shortage of cabin-completion
capacity and the lack of quality employees to operate the aircraft pose formidable barriers to continued market
expansion.
“One of the main restraints for the growth of the business jets market in Asia is the time taken for landing
slots and approvals, which can extend to two to three weeks,” Cleetez said. “Furthermore, the absence of local
service centers and the fewer number of paved airports in Asia compared to western countries also serves as a
barrier.”
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