Pain's Not Over, But Some Upturns Reported

When Cirrus announced a few weeks ago that it was stepping up production of its top-selling piston singles, it was tempting to think the first robins of an economic spring were hopping across business aviation's lawn.

Now, Brian Foley Associates, a New Jersey-based firm which assists investors on due dilligence in the business aviation segment, says there are other signs the business aviation slump is hitting bottom.

Firm President Brian Foley says there's more pain to come, including possible sales or consolidation among OEMs. But he adds that sectors of the business which were the first to feel the impacts of the economic downturn back in 2007, including charter operators, FBOs and piston OEMs, will also be the first to recover, and some are already reporting modest upturns.

For other segments, including manufacturers, the pain will last thru mid-2010. "The business jet industry is no longer careening off a cliff, it’s just bouncing off the rocks below. The worst of the cataclysmic economic events are behind us but the perturbations will continue rippling through the industry for awhile."

Several weeks ago, Foley predicted the swollen inventory of used business jets would level off by this summer, and start to decline early next year. Hear the full ANN Aero-Cast interview with Brian Foley on our recent Aero News Special Feature.

FMI: www.brifo.com, www.aero-news.net/fb/index.cfm?do=podcasts.viewEpisode&episodesid=2951