This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Honeywell Global Business Aviation Forecast Sees Three To Four Percent Average Annual Industry Growth In Next Decade

Stocks in this article: HON

Higher purchase expectations continue to be placed upon larger aircraft, implying they will command the bulk of the value billed from now until 2022. This class of business jet is expected to account for nearly 70 percent of all expenditures on new business jets. Volume growth between now and 2022 will also be represented by this class of aircraft, reflecting more than one-third of additional units and two-thirds of additional retail value.

"The trend toward larger cabin aircraft with ever-increasing range expectations and advanced avionics continues to be reflected in this year's survey," said Rob Wilson, president, Honeywell Business and General Aviation. "As a full spectrum supplier to the industry, Honeywell has been successful in building strong content levels on most of the more popular super midsize and larger aircraft in production or scheduled to enter service over the next few years."

"The Honeywell operator survey has been an invaluable tool for the industry over the past two decades," explained Carl Esposito, Honeywell Aerospace Vice President of Marketing and Product Management. "The annual outlook has helped guide our own product decision process that has led to focused investments such as designing and developing optimized propulsion offerings, flight efficiency upgrades, innovative safety products, and enhanced services."

REGIONAL BUYING DETAILS

Regional purchasing results are nuanced according to each market's maturity, economic environment and other characteristics. Emerging markets generally show higher but historically more volatile levels of demand, as well as a more pronounced preference for larger aircraft. As developed markets' performance strains under both economic sluggishness and business lifecycle transitions, emerging markets have been shaping the industry's growth, backlog and portfolio composition or mix.

The overall level of forecast aircraft demand coming from outside North America continues to increase as projected. This year, roughly 53 percent of projected demand comes from North American operators, down two points from the 2011 survey.

Honeywell first spotlighted growth in the BRIC countries ( Brazil, Russia, India and China) last year. In 2011, these results led the survey with 50 percent of respondents reporting acquisition plans. This has since lowered to 46 percent but with a firming profile. While last year less than one-third of BRIC purchases were planned to happen within two years, this year more than 40 percent of those surveyed say they intend to begin purchasing activity in the next two-year timeframe. Some signs of uncertainty regarding business conditions do show up in this group's timing profile, with a marked increase of purchases not allocated to a specific year or placed by default in 2017.

Together, the emerging market results from BRIC countries reflect a slight tempering of enthusiasm compared to a year ago but are still quite strong when compared with other regions, or with results accrued during the more than 20 years Honeywell has been conducting this survey.

2 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs