The business jet market was impacted due to the lockdowns and restrictions imposed to curb the spread of COVID-19.
Verdict has conducted a poll to assess the extent of impact of the pandemic on business jet sales in the coming years.
Analysis of the poll results shows that business jet sales are expected to be highly impacted by the pandemic in the coming years, as voted by a majority 58% of the respondents.
The pandemic’s impact will be low, according to 30% of the respondents, while just 4% foresee no impact on the sales of business jets. The remaining 8% of the respondents do not know how the COVID-19 pandemic could impact business jet sales.
COVID-19 impact on business jet sales
The buyers, lessors, financial institutions, and manufacturers in the business jet market are expected to be impacted by various factors arising out of the COVID-19 pandemic including lockdowns, low cash flows and travel quarantines, according to GlobalData.
Business jet deliveries declined by 19.1% in the first quarter of 2020 compared to the corresponding period in 2019, according to the General Aviation Manufacturers Association. Aircraft utilisation also declined significantly at the start of the pandemic by 73.5% in the US and 77.7% in Europe compared to the previous year. Bombardier, Textron, and Gulfstream have announced lay-offs owing to the decline in demand.
Despite the impact on demand, the industry is expected to witness a V-shaped recovery compared to the L-shaped recovery forecast for commercial aerospace, says GlobalData. Physical distancing, better hygiene, and isolation provided in business jets will allow their demand to recover quicker.
The trend, however, will not translate into increase in the manufacturing of new aircraft, opines Aircraft Owners and Pilots Association, which adds that the continued use of business jets will depend on the revival of commercial aviation.