Largely due to program schedule recoveries
The 2014 Honeywell outlook reflects an approximate 7 to 8 percent increase in projected delivery value over the 2013 forecast. Slightly higher unit deliveries are coupled with modest list price increases and the continued strong showing of larger business jet models in the delivery mix to generate the growth.
Honeywell forecasts 2014 deliveries of approximately 650 to 675 new jets, a single-digit increase in percentage growth year over year. The improvement in deliveries expected in 2014 is largely due to program schedule recoveries, new model introductions and additional fractional uptake.
“2015 industry deliveries are anticipated to be up modestly again, reflecting momentum from several new model introductions and some gains linked to incremental global economic growth,” said Brian Sill, president, Business and General Aviation, Honeywell Aerospace.
The share of projected five-year global demand attributed to the Middle East and Africa region moved below its historical range of 4 to 7 percent this year.
In the Middle East and Africa, 18 percent of respondents’ fleets are projected to be replaced or added to with a new jet purchase, down from 26 percent last year. The level of purchase plans is under the world average and unsurprising in that it has been a year of significant political upheaval and ongoing conflict in the region as well as a year in which oil prices have drifted lower and health crises have emerged in Africa.
Regional distress has taken a toll, with operators in the region scheduling their purchases later in the next five-year window than expected last year, with only 21 percent of purchases planned before 2017.