# Slowdown foreseen in booming general aviation/utility market

ISSN: 0002-2667

Publication date: 25 January 2008

## Abstract

#### Citation

(2008), "Slowdown foreseen in booming general aviation/utility market", Aircraft Engineering and Aerospace Technology, Vol. 80 No. 1. https://doi.org/10.1108/aeat.2008.12780aaf.004

### Publisher

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Emerald Group Publishing Limited

In a new study titled “The Market for General Aviation/Utility Aircraft 2007- 2016” Forecast International projects that makers of general aviation and utility aircraft will turn nearly 27,140 aircraft worth approximately $22.55 billion during the period 2007-2016. The Connecticut-based market research firm, which excluded the production of business jets from this study, anticipates that production of general aviation and utility aircraft will peak in 2007 at about 3,243 annual deliveries and then fall off gradually to a low of 2,452 shipments in 2011, with annual production thereafter hovering in a band between 2,400 and 2,600 units for the remainder of the forecast period. “Strong economic growth led to continuous increases in production levels during the past five years, but this trend is unlikely to last for much longer” said Douglas Royce, Aerospace Analyst at the company. “The general aviation market has historically been highly sensitive to economic conditions, with the segment typically being the first in the industry to suffer during a prolonged economic downturn. The economic boom of the past years may be slowing, and slower economic growth will lead to reduced production levels in the years ahead.” Forecast International anticipates a decline in corporate demand for twin turboprops in favour of the fractional ownership of turbofan-powered aircraft. This trend is expected to accelerate with the appearance of the new class of very light jets (VLJ) now coming online from makers like Cessna, Eclipse Aviation, Adam Aircraft, and others. These VLJs offer the jet aircraft's speed and ability to climb above weather at prices that are competitive to those of twin turboprops, but Royce said that Forecast International does not expect to see demand for twin turboprops end altogether. “These aircraft offer far more spacious cabins than the typical VLJ, and not all operators will be willing to trade space for speed.” Of the total number of aircraft produced, 22,477 piston aircraft will account for the vast majority of units produced (82.8 per cent of the total). Turboprop aircraft manufacturers will turn out aircraft in lower numbers, for a total production of 4,660 units (17.2 per cent of the total). Turboprop value of production is projected to amount to$13.7 billion or 60 per cent of the total, while the value of production of piston aircraft will amount to \$9 billion or 40 per cent of the total due to the much higher unit prices of turboprop aircraft.