Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Business jet deliveries hit decade high in 2019, helped by new models

Published 02/19/2020, 03:03 PM
© Reuters. FILE PHOTO: Prototypes of chaise lounge for Bombardier's Global 7500, the first business jet to have a queen-sized bed and hot shower, is shown during a media tour in Montreal
GD
-
HON
-
BBDb
-

By Allison Lampert and Mike Stone

MONTREAL/WASHINGTON (Reuters) - Business jet deliveries across the globe hit a decade high in 2019, the General Aviation Manufacturers Association (GAMA) said on Wednesday, helped by strong market demand for new models.

Deliveries rose 15% from 703 to 809 jets, the highest level since 2009, GAMA said in its 2019 year-end aircraft billing and shipment numbers.

Business jet deliveries are being underpinned by the ramp-up of new models by manufacturers like Bombardier Inc (TO:BBDb) and General Dynamics Corp (N:GD) unit Gulfstream Aerospace that offer longer ranges and amenities such as beds and hot showers at 40,000 feet.

Honeywell Aerospace's (N:HON) business aviation outlook from last year expects a 7% rise in deliveries in 2020.

Business jet executives who are bringing new planes to market defended the U.S. Federal Aviation Administration (FAA)'s certification process, which has come under fire following the March global grounding of Boeing's (N:BA) 737 MAX jet.

Crtics have said the FAA’s long-standing practice of delegating “a high level” of certification tasks to manufacturers like Boeing needs significant reforms to ensure adequate safety oversight. In 2019, a global panel pointed to the FAA's review of a MAX safety system that was later tied to two crashes that killed 346 people.

Textron Aviation (N:TXT) President Ron Draper called the 2019 certification of its super-midsized Cessna Citation Longitude as "the most rigorous certification process on any airplane we've done in our history."

Draper told reporters at a GAMA event in Washington DC that the delegation system overseen by the FAA remains "rigorous," and it would not make sense to scrap it.

"The FAA orchestrates this like a conductor from the entire process and we have to show compliance on every system every safety aspect of the airplane," he said.

GAMA said North America accounted for 67.1% of business jet deliveries, the largest market for corporate aircraft followed by Europe.

© Reuters. FILE PHOTO: Prototypes of chaise lounge for Bombardier's Global 7500, the first business jet to have a queen-sized bed and hot shower, is shown during a media tour in Montreal

Gulfstream generated the highest value of deliveries with almost $7.9 billion in billings, followed by Bombardier at $5.7 billion.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.