Page 17 - AAA MAY - JUNE 2016 Online Magazine

FEATURE BUSINESS AS USUAL

for turboprops is expected to lead, with 2,693 second-largest market with 2,606 aircraft.
deliveries over the next 10 years, followed by China, Hong Kong and the Asia-Pacific region
light jets at 2,467 and ultra-long-range jets at had modest growth in 2015, and together
2,062 aircraft. The total demand for business account for less than six per cent of the fleet.
jets is expected to total 10,004 over the 10- “The fact that the market grew is
year period, according to the forecast, which somewhat encouraging,” Rubel opines.
also predicts a 2.3 per cent annual growth
rate in the world’s business aircraft fleet. Leading Markets
The global market for business jets is Over the next decade, North America is
estimated to be worth US$21.5 billion as expected to lead the market for new jets
of 2014 and is projected to grow at 2.8 per followed by Europe and Africa.
cent Compound Annual Growth Rate (CAGR) While both North America and Europe
through 2033. The demand for business jets have a comparable size of economy, the
continues to recover steadily with aircraft private jet flight activity in North America
delivery numbers in 2014 registering a 6.5 per is 3.5 times larger. With emerging markets
cent year on year growth. experiencing pressure, North America has
The total worldwide business jet fleet steadily gained market share in the past three
expanded in 2015, with the U.S. market years. At the end of the third quarter of 2015,
growing slightly faster than the total market, North America accounted for approximately
according to Jefferies Group. 66 per cent of global deliveries in the private
“Despite all the worry about the jet market, up from 45 per cent of the market
business jet market, the fleet is still growing share before 2008.
somewhat,” Jefferies analyst Howard Rubel In Europe, it is expected that, new aircraft
writes in a note to investors. deliveries will be offset by older jets exiting
The worldwide fleet grew 3.4 per cent in the market which will result in almost zero
2015 to 20,127 aircraft, from 19,466 in 2014. net fleet growth through 2020.
The U.S. market expanded by 487 business Although the corruption crackdown and
jets year-over-year to 12,880 aircraft, equal the new government’s policies have slowed
to 64 per cent of the installed base. With the economic pace of China, outlook is still
almost 13 per cent of the fleet, Europe is the bright. The Greater China area is expected

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