LAS VEGAS, Oct. 20, 2013 /PRNewswire/ -- In its 22nd annual Business Aviation Outlook, Honeywell (NYSE: HON) is forecasting up to 9,250 new business jet deliveries worth over $250 billion from 2013 to 2022.
The 2013 Honeywell outlook reflects an approximate 3 to 4 percent increase in projected delivery value over the 2012 forecast. Despite slightly lower unit deliveries, the expected value comes from pricing increases and a continued change in expected business jet delivery mix, which reflects the ongoing trend toward larger business jet models.
Honeywell forecasts 2013 deliveries of approximately 600 to 625 new business jets, a single-digit decrease over levels reported last year. The reduced deliveries expected in 2013 are largely due to new program delays rather than deterioration in demand.
"2014 industry deliveries are anticipated to be up modestly, reflecting recovery in supply- side constraints and some gains linked to the projected pace of global economic recovery," said Rob Wilson, president, Honeywell Business and General Aviation.SURVEY FINDINGS In its latest survey, Honeywell found that the operators interviewed plan to make new jet purchases equivalent to about 28 percent of their fleets over the next five years either as a replacement or in addition to the their current fleet. This level of interest has been largely stable for the past four survey cycles, and compares favorably with results of 25 percent or less that were the norm until 2006. Of those new business jet purchase plans, 19 percent are intended to occur by 2014, with larger shares of more than 22 percent each year scheduled for 2015 and 2016 purchases. The survey does not allocate specific years beyond 2016. This is slightly improved from last year's results and leads to a modest gain in projected demand in the near term.