International Bureau Of Aviation Sees An 11,000-Airplane Increase

The 2013 Business Jet Asset Report from the International Bureau of Aviation forecasts that the global business jet fleet will grow to a total of nearly 31,000 aircraft by 2025, an increase of 11,000 jets. Much of the new growth is expected to come from new deliveries, implying many business jet models have a solid future ahead of them.

ISTAT Appraiser, IBA Senior Analyst and Report author, Jonathan McDonald, commented, “Current production models offering a more robust investment potential include the super mid-size Bombardier Challenger 300 as well as the Gulfstream G280 (pictured), both using modern Honeywell engines.  In contrast, IBA advises caution around the Hawker 4000 which could face product support issues due to the Hawker Beechcraft bankruptcy.”

During the period 2005 - 2010 the Very Light Jet (VLJ) sector saw a period of spectacular growth on products such as the Eclipse EA500, Embraer Phenom 100 and Cessna Citation Mustang.  Despite these entry level aircraft faring poorly during the recent economic downturn, IBA’s expert opinion predicts this sector will show significant growth by 2025.

“We regularly view the Boeing 737 and Airbus A320 as popular and robust investment opportunities in today’s market; their business jet variants are the pinnacle of the industry alongside the long range Gulfstream and Bombardier jets," said Dr. Stuart Hatcher, Head of Valuations and Risk for IBA. "These long range, intercontinental aircraft are predicted to be strong performers as the market continues to expand globally and we expect to see the MAX and Neo based business jets do well later this decade.

“IBA’s current Aircraft Ratings Investment Guide is a popular tool for Commercial Aircraft. Based on the demand for this to be made available for business jets, we expect the Business Jet Asset Report to be equally popular,” he said.

FMI: www.ibagroup.com