Fractional Ownership News

Fractional jet orders to rise in 2011 and 2012

Aviation products manufacturer Honeywell has forecast that deliveries of new aircraft to fractional jet operators will rise slightly in 2011 and 2012 after the recession-induced slump of 2009 and 2010.

Honeywell's latest Business Aviation Outlook says: “Owners of fleets serving fractional shareholders and jet card purchasers have reduced demand sharply in the current recession. Fractional fleet operators still account for about 10 to 12 per cent of the backlog for business jets, but have drastically curtailed current new aircraft additions in the face of net share sales erosion.”

“New jet deliveries to fractional fleet operators are off more than 66 percent through the first half of 2009. Sales of new ownership shares have deteriorated further after 2008 posted a 13 percent loss. As a result, Honeywell is projecting much lower deliveries into this segment for the next few years as excess capacity is worked off and shareholder levels are rebuilt.”

“Replacement demand for new aircraft contributes a significant share of new jet purchases in the fractional segment which should support some improvement in new jet deliveries to the sector by 2011-2012. This segment’s higher utilization and its desire to maintain a consistent passenger experience with newer aircraft and hold down operating costs leads to replacement at shorter intervals than is typical for traditional operator groups.”

www51.honeywell.com/aero/

03/02/10
 

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