Private-jet deliveries surge just as global economy cools off

Bloomberg

It’s all about that new plane smell. Private jets that can fly faster and go longer distances are causing a surge in new corporate-jet deliveries from General Dynamic Corp’s Gulfstream unit, Bombardier Inc and Textron Inc’s Cessna. Innovations that have spurred sales include better fuel-efficiency, roomier, quieter cabins and gadget-packed cockpits that can predict the weather and smooth out bumpy rides.
Business aircraft deliveries are expected to rise 9% this year to about 690, and will climb to about 740 planes next year, according to an annual report from Honeywell International Inc.
“Every time we have a wave of new products coming to the market, typically that’s positive for overall deliveries of business jets,” said Gaetan Handfield, senior manager of marketing analysis for Honeywell’s aerospace unit. “That’s what’s driving this.”
The rise in deliveries comes as the US-China trade war, the UK’s looming break from the European Union, and a shaky global economy threaten to cut the momentum short. Shipments of private jets will fall off slightly in 2021, according to Honeywell’s report, which is the broadest survey of private aircraft operators.
The current gains are a welcome boost for a $20 billion industry that has yet to return to the frothy heights preceding the 2008-2009 recession, when deliveries peaked at 1,300 aircraft. Corporate jets were a prominent casualty of the crash when companies
focussed on cutting costs
and using their cash to buy back shares instead of renewing fleets.