Farnborough 2008 Show News - July 15, 2008 - (Page 24) BUSINESS AVIATION FA R N B O R O U G H 2 0 0 8 U.S. Business Jet Market Shows Some Softening, But New Markets Thrive A Wall Street analyst sees signs of softening in the business jet market, but remains optimistic that any downturn will be buffered by new demand from markets outside the U.S. JP Morgan’s Joe Nadol says the number of used business jets for sale has reached 7.2% of the active fleet, up from 6.8% in March and 6.2% in January. The rise was driven by higher inventories of medium and light aircraft. “We have been expecting the used market to weaken due to the soft economy in the U.S. and Europe, and the data is beginning to bear this out,” Nadol wrote in a recent report to clients. The average asking price for used jets has fallen 1% since March, to $16 million, but is still 2.6% higher than a year ago. Prices for medium business jets have declined the most since March, 2.1%, while heavy jets were down just 0.5%. The big question is how much the sputtering U.S. economy will cool off record demand for business jets. The recent emergence of markets in places such as Asia, Eastern Europe and Russia has decreased the industry’s vulnerability to swings in the U.S. economy. North American operators, which used to make up nearly 80% of demand, are expected to account for just half of the business jet purchases over the next five years, according to a Honeywell forecast released last fall. “With U.S. corporate growth likely to decline in at least the first half of 2008, we believe that at least a slowdown in business jet delivery growth could occur in 2009 or 2010,” says Nadol. However, the size of the impact will depend on how much U.S. economic doldrums impact other nations. “As we see the global economy remaining relatively strong, we believe that continuing demand from emerging markets will likely mute the effect somewhat.” –Aviation Week & Space Technology Record Deliveries Chalked Up by Embraer Embraer (Chalet C33-35) delivered 97 aircraft during the first half of 2008, a 59 percent increase compared with the same period in 2007. Seventy-six of these deliveries were EMB 170/190 series regional jets. The remainder were older-generation ERJ 145 and Legacy 600 aircraft. Embraer, though, intends to become a dominant force in business aviation in future years. Deliveries of its 1,100-nm range Phenom 100 are expected by year-end, and the larger, longer range Phenom 300 variant is slated to reach the market by mid-2009. Embraer claims 800 orders for Phenom 100/300 aircraft. These aircraft will be followed by Embraer’s fly-by-wire Legacy 450 and 500 midsize aircraft, scheduled to enter service in 2012 and 2013, respectively. NRC Hosts Learjet 85 for Wind-Tunnel Testing Canada’s National Research Council Institute for Aerospace Research’s trisonic blowdown wind tunnel has been selected by Bombardier Aerospace to test the high-lift aerodynamics of its forthcoming all-composite Learjet 85 bizjet. The configuration of NRC’s high-speed wind tunnel allows researchers to predict maximum lift and stall characteristics. In addition, the tunnel’s high Reynolds number flow capability makes the facility an ideal tool for improving the aerodynamic performance of business and regional jets. Eaton Fuel System for Cessna Columbus Eaton’s selection as the complete fuel system provider for Cessna’s new Citation Columbus business jet will be worth an estimated $100 million over 20 years, says the supplier. And, the award “represents a new market segment win for our fuel systems business,” said Eaton aerospace business president Bradley Morton. “It also demonstrates the synergy and strengths of the legacy Argo-Tech and Cobham Fuel and Air Division acquisitions made in the last 28 months by Eaton.” he added. Eaton (Hall 3, Stand C5) says it will design, develop and manufacture electric fuel boost pumps, ejector pumps, flow control valves, the refuel/defuel subsystem and the fuel quantity measurement system. Gulfstream Rolls Out 200th G550 Less than five years after earning FAA type certification, Gulfstream (Chalet J-1) wheeled out its 200th GV-SP, commercially known as the 6,700-nm range G550 or G500 with reduced fuel capacity and 5,800 nm of range. The G550 features a large-area wing, sporty thrust-to-weight ratio, proven-technology systems and signature wide-oval cabin windows. The current dispatch rate is 99.87 percent for the 172 aircraft in service during the previous 12 months, Gulfstream officials claim. Marketleading customer support is one main reason for Gulfstream’s success with the G550/500 aircraft. Cessna’s Pelton Likes European Prospects “We see the potential for significant development in the population of the European business jet market, from small to transcontinental, during the next 10 to 20 years,” Pelton said. “Based on our commitments so far, we expect to add about 100-125 Citations each year during the next two or three years. To support this growth, we have progressively built a considerable service presence, both with our own facility in Europe as well as with independent maintenance providers.” Eaton Hydraulics for Learjet 85 Eaton Corp. (Hall 3, Stand C5) has been chosen by Bombardier as hydraulic system supplier for the Learjet 85. Eaton will be responsible for the design, development, integration and reliability of the hydraulic system. T key components will include two main-engine hydraulic pumps, a DC motor otal pump, hydraulic control valves, filters and a reservoir. Eaton’s hydraulic system will provide power for the landing gear, spoilers, brakes, flaps, nosewheel steering and thrust reverser systems. No freeze in the Falcon 7X market, pas du tout. 24 July 15, 2008 www.aviationweek.com/shownews http://www.aviationweek.com/shownews
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