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Thu, Jan 10, 2013

New Industry Forecast Optimistic For BizAv Industry

But Study Indicates Commercial Jetliner Orders Have 'Probably Peaked'

A new study released this week by RBC Capital Markets indicates that there may be better times ahead for the business jet sector of aviation, but that the record orders experienced by Boeing and Airbus the past couple of years could be the top of that cycle.

The report, titled "Global Aerospace & Defense: The 2013 Oracle," indicates there may be a "belated pickup" in the bizjet market, according to a report appearing in the Wichita Eagle. But the surge of orders for airliners, particularly the re-engined narrow-body Boeing 737 MAX and Airbus A320neo, have probably peaked over the past couple of years. The report shows the two planemakers with a combined backlog of nearly 9,000 airplanes. Analyst Robert Stallard said that Boeing's deliveries are expected to peak at nearly 720 airplanes in 2015 before starting to decline, while Airbus will likely see a peak of 755 aircraft by 2018.

Stallard also predicts that business jet manufacturers are likely to focus on the European market to bolster their order books during the EBAA in May, and may delay any new product introductions until the NBAA convention in October.

He also says that the aftermarket sector will see a return to growth as airlines look to invest more in airplane upgrades and retrofits.

(File image Lear 85)

FMI: www.rbccm.com

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