Poll: Will COVID-19 accelerate potential consolidation in business aviation OEMs?

In the wake of the COVID-19 pandemic, business jet deliveries in 2020 could drop anywhere from 12.5% to as much as 40-50% compared to last year, with recovery unlikely before 2023, according to a new forecast by JetNet IQ. 

The coronavirus could potentially disrupt the supply chain for manufacturers and work to change the mix of business aircraft in demand as companies decide to put more of their employees on private jets as an alternative to the airlines, said Rolland Vincent, an aviation consultant and director of JetNet IQ. 

But by the end of 2020, there will be signs of sales returning, he predicts.

Manufacturers will now have “white tails”–or aircraft without buyers–on their production lines. “And buyers know that,” Vincent said. “We are going to have some amazing deals that OEMs are prepared to do. They need to move stuff. They need cash flow. We’ll see some very impressive deals from a buyer’s point of view.” 

Read the full article - COVID-19 Could Trigger Bizjet Demand Nosedive, Forecast Says

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