Honeywell Says Business Jet Demand Expected to be Down 15 Percent

October 10 00:00 2011

New York, October 10 (RainbowNewsLine.com) – After conducting a survey of 1,500 corporate flight departments between May and August, Honeywell Aerospace has said that global deliveries of new business jets are likely to be 15 percent down this year from 2010.

It is expected that deliveries of new business jets will be between 600 and 650, down from 732 in 2010, mainly because corporations are putting off their plans for expanding their fleets due to the current economic turmoil and uncertainties. Honeywell Aerospace is involved in making engines, electrical systems and other aircraft components. It is a unit of Honeywell International Inc. of Morris Township, NJ.

However, deliveries are likely to increase next year but they will still be less than 700. North America is expected to do better as purchases are likely to increase slightly despite the current stagnant job market, economic downturn, fear of recession and volatility in the stock market.

Honeywell said international demand depends on different countries’ economic situations and concerns. Purchase expectations are likely to be high in Asia and the Middle East but they will be lower in other regions, including Latin America and especially in Europe. It is expected that about 45 percent of new aircraft purchases over the next five years will be made internationally.

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