Avionics News May 2022 - 30

AIRCRAFT AND AVIONICS SALES ON THE UPSWING
Continued from page 29
top-down recovery in general aviation. At that time, heavier
business jets with large cabins led the way.
Pete Bunce, GAMA president and CEO, said a breakout of
business jet sales in 2021 by weight class showed an uptick
from 2020 in all weight categories. This included sales of
aircraft weighing 12,500 pounds and less, aircraft weighing
12,500 to 50,000 pounds and business jets weighing more than
50,000 pounds. Total business jet shipments with all weight
classes combined were up 10.2% to 710 aircraft. Billings rose
5.6% to $19 billion.
Amalfitano said that several industry analysts in the
audience had forecast business jet sales rising 6% or 8%. " It's
nice to see that we actually exceeded expectations in that sector
(by reaching 10%), " he said.
Some new buyers cane into the marketplace for the first time,
specifically in the jet category, but across all segments. Corporate
flight departments started coming back into the market for
aircraft in late 2021, and some of the interest is being driven
by bonus depreciation that might come to an end in 2026. Tax
considerations may have moved some purchases into 2021 as
high net worth individuals prospered in a robust economy.
" We're seeing activity across the entire spectrum recover, "
Bunce said. " This is driven not only by buyers of aircraft, but
users of a lot of the (business aircraft) models that have been
created since the financial crisis in terms of fractional jet cards
and social memberships that are clearly driving the distribution
across those segments. " While 2021 activity was driven mainly
by leisure use in the charter market, there was also a significant
increase in the owner pilot market.
" We saw from the numbers that the industry turned a
corner, " said Omar Bar-Yohay, founder and board member of
GAMA member, Eviation. " We see a lot of new interest from
flight departments, individual owners and even major operators
renegotiating what their fleet will look like in 2025 and 2026. "
Eviation is developing the Alice all-electric commuter aircraft
to carry nine passengers to 440 nautical miles at a max cruise
speed of 250 knots. The 2024 to 2025 time frame matches up
with when the first advanced air mobility aircraft will enter the
market. AAM includes passenger air taxis, autonomous aircraft,
electric vertical takeoff and landing aircraft, cargo drones
capable of lifting a ton or more and other novel air vehicles.
Exactly who will get to market first is yet to be seen.
Meanwhile in 2021, people were putting aircraft that have
been stored for years back into service, which also requires
a lot of initial pilot training to get back in operation. And for
buyers, it is not only new aircraft but also used that are finding
new homes. Record low levels of used aircraft inventories
30 avionics news * may 2022
means it can be hard to even find one to buy.
Piston helicopter shipments increased 27.5% over 2020, on a
par with pre-pandemic levels in 2019. Billings in this sector were
up 31.4% to $80.3 million. Turbine helicopter shipments were
preliminary because Leonardo didn't report its results until late
March. The rest of the companies in this sector delivered 645
aircraft, up 24.8%. Billings rose 27.9% to $3.6 billion.
Turboprop aircraft deliveries bounced back nicely from
2020 with an increase of 19% with the delivery of 527 aircraft.
This figure moves the segment back up to pre-pandemic levels
recorded in 2019. Billings rose 31.8% to $1.8 billion. The
largest market share continues to be in North America, but
in 2021, Latin America overtook Europe and Asia to claim
second place. Latin America logged $1.8 billion in sales, a 32%
increase over the previous year.
GAMA officials cited the Aircraft Electronics Association's
year-end market report. The avionics market recorded more
than $2.3 billion in sales, a 6.5% increase in 2021 from the
previous year. This is for all business and general aviation
aircraft electronics sales of hardware and software.
Avionics sales in 2021 were 54.6% in retrofit and 45.4% in
forward-fit installed by airframe companies. The geographic
breakdown saw 75.2% of sales occurring in North America and
24.8% in foreign markets.
Another positive sign is that avionics sales increased for six
consecutive quarters as they were recorded by the AEA. After
the first two quarters of the pandemic in the first half of 2020,
sales have been on an uptick.
Amalfitano introduced AEA President and CEO Mike
Adamson who was in the audience and congratulated him on
these results. The AEA began the market survey in 2013, and in
2021, there were 21 companies reporting.
Airframe booking rates are good, and they go out for a year
or two or longer. Phil Straub, Garmin executive vice president
and managing director of aviation, said the booking rate has also
been good in the aftermarket where avionics make flying safer
and more accessible. But according to an AEA-member survey,
80% of the shops that do the installation work are either hiring
now or will be later this year. This is a headwind for the avionics
segment along with the supply chain " that is affecting everyone. "
Another issue the general aviation industry is working on
involves the Federal Aviation Administration and the backlog
of regulatory and policy work needed to move forward on all
sorts of projects. One example is simplified vehicle operations
being developed for novel AAM air vehicles. Straub said this
technology will also be useful with traditional aircraft. There
will be a need for minimum operational performance standards,
consensus standards and other things the industry and the FAA
will have to formulate.
Embraer has certified 30 aircraft in 25 years in business
Avionics News May 2022

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