EBACE:Business Aviation market shows signs of recovery

Dassault Aviation boss Charles Edelstenne says there is growing evidence of recovery in the battered business aviation market.

"We are starting to see some sign of change. The pre-owned market is stabilising in terms of aircraft for sale and price," the Dassault chairman and chief executive said at the show today.

"It will take some time before the trend reverses but this is the first positive sign that we have been expecting for months. We are meeting more prospects and customers willing to discuss and prepare plans for their future operations."

The view that the business aviation world is improving was reinforced by Lufthansa Technik.
At a press conference at the show this morning, the company said it is not expecting any significant decline in the demand for completions of large private and government jets.

"Interest in customised completions of large aircraft to the highest level of quality continues to be high," said Walter Heerdt, Senior Vice President Marketing & Sales.

The Hamburg-based completion operation continued to enjoy good utilisation, he said, and had only a few remaining layover slots to offer over the next four years.

Lufthansa Technik's Hamburg base is due to equip and deliver two Airbus A330 aircraft and two Airbus A340's just between now and 2011.

Although the delivery dates have not yet been confirmed, another two preliminary contracts have been signed for the Boeing 787 and two for the Boeing 747-8. According to Heerdt, the company has not yet had any large VIP aircraft completions cancelled, and is in discussions with additional customers.

"Lufthansa Technik is well prepared for this sustained high demand in the large VIP aircraft segment," said Heerdt in Geneva. "Thanks to measured growth in line with the market, we have been able to
maintain our delivery reliability and the established high quality level. As a result, our operation in Hamburg is well utilised through 2015, and between now and then we have only a few remaining
completion slots to offer."

According to Heerdt, the global financial and economic crisis is as yet having little impact in this market segment. Because of the age of the fleets involved, the demand for remodelling, modifications and
maintenance also remains virtually stable. "

The EBACE show appears to be stable too.

European Business Aviation Association chief executive Brian Humphries said early visitor registrations to EBACE - at just 4% lower than the corresponding period at last year's show - were "highly encouraging". Exhibitor space is sold out.

Humphries urged the industry to begin promoting business aircraft as a business tool, not a luxury item. "We have been our own worst enemy," he told delegates at a fringe meeting. "Manufacturer advertisements show gold seat buckles, flowers, lobster, champagne and glamorous girls. Eighty per cent of business aviation in Europe is corporate and government. Let's portray business aviation as it really is."