Overall Deliveries Rise On Strong Turbine Demand

On Thursday, the General Aviation Manufacturers Association (GAMA) reported worldwide deliveries of general aviation airplanes for the first nine months of 2008... and while the overall report continues to be positive, there's no denying this is a tough time to be a manufacturer of piston-engined aircraft.

A total of 2,977 airplanes were shipped in the first three quarters, valued at $18.2 billion, compared to 2,918 units valued at $15.1 billion during this same period in 2007. That surge comes on continued strong demand for turbine-powered aircraft, at the expense of planes powered by reciprocating engines.

Piston-powered airplane shipments totaled 1,646 units compared to 1,857 units delivered in the first three quarters of 2007, an 11.4 percent decrease. Turboprop shipments increased from 300 units in the first three quarters last year to 341 units in 2008. Business jet shipments totaled 990 units in the first three quarters of 2008, a 30.1 percent increase over the 761 units delivered during this same period in 2007.

Despite the positive report for the market as a whole, GAMA President and CEO Pete Bunce cautioned the good times may be coming to an end, given the shaky state of the US and global economies.

"Notwithstanding these positive third quarter numbers for turbine powered aircraft deliveries, our industry is experiencing difficulties due to the weakness of the global economy," said Bunce. "Reacting to the lead and lag nature of this economic slowdown, several companies have announced layoffs and are working very aggressively to retain orders and encourage new ones. Even as the price of fuel has declined from the debilitating high levels we saw this past summer, the uncertainty of financial markets worldwide is negatively impacting the entire aviation industry."

All piston aircraft manufacturers listed on GAMA's 2007 and 2008 reports saw declining sales through the first three quarters of 2008, with three exceptions. Liberty Aerospace held steady at 28 deliveries of its XL2 for the same periods in 2007 and 2008, while Australia's Gippsland Aeronautics saw a two-aircraft uptick in YTD deliveries for its GA8 Airvan. And Piper Aircraft saw a healthy increase in its overall sales solely on strong demand for its Malibu Matrix... which offset steep declines in deliveries of Piper's other piston lines, and even a slight decrease in Meridian turboprop deliveries.

Unfortunately, that's where the good news ends for piston aircraft. Cessna posted declining delivery numbers for its entire piston line... including a 43 aircraft drop in deliveries of the newly-rebadged 350 and 400 lines, compared with deliveries of those aircraft through the first three quarters of 2007 while still branded as Columbias.

Market rival Cirrus has delivered 36 fewer aircraft this year, than over the same period in 2007.

Bunce pointed to those declining numbers in calling on the government to help spur GA sales. "GAMA is committed to working with the US Congress and the Administration to utilize measures that in the past have helped stimulate aircraft orders. At the same time, we will urge US government entities, as well as the European Commission and Parliament, not to enact new regulation or implement policies without a full assessment of the economic burden that would be imposed on aviation operators, manufacturers or their employees."

FMI: Read The YTD Deliveries Report (.pdf), www.gama.aero