ORLANDO, Fla., Oct. 28, 2012 /PRNewswire/ -- NBAA – In its 21st annual Business Aviation Outlook, Honeywell (NYSE: HON) is forecasting nearly 10,000 new business jet deliveries worth about $250 billion from 2012 to 2022.
The 2012 Honeywell survey reflects an approximate 9 percent increase in projected delivery value over the 2011 forecast. The expected gains come from pricing increases and a change in expected business jet mix, which reflects a continued trend toward larger business jet models.
Honeywell forecasts 2012 deliveries of approximately 680 to 720 new business jets, a single-digit increase over levels reported last year."Next year's totals are anticipated to be of similar magnitude, reflecting the protracted nature of the global economic recovery," said Rob Wilson, president, Honeywell Business and General Aviation. "Over the medium term, a return to historical growth conditions supported by globalization, wealth creation in developing nations and new aircraft development should boost orders and support accelerated growth beginning mid-decade. Despite the economic challenges our industry has been dealing with for the past 40 months, we believe some progress is being made." SURVEY FINDINGS In its latest survey, Honeywell found that about 30 percent of operators interviewed have plans to purchase a new business jet over the next five years either as a replacement or in addition to the respondent's fleet. This level of interest has been largely stable for the past three survey cycles, and compares favorably with results of 25 percent or less that were the norm until 2006, but below the peak of 40 percent in 2009. This year, about 20 percent of those with plans to purchase a new business jet intend to make it by 2013, with a similar proportion planning 2014 and 2015 purchases. The survey does not allocate specific years beyond 2015. This is similar to last year's results and leads to a relatively stable level of projected demand in the near term.