Asia, Credit Markets Explain Stark Industry Contrast
One might attribute the striking contrast between the business jet industry’s predicament and the more-than-healthy production rates at major commercial ai
Airbus plans to raise A320 production to close to 40 aircraft a month, while business aircraft manufacturers have cut production rates dramatically since 2008. Copyright Airbus
Airbus plans to raise A320 production to close to 40 aircraft a month, while business aircraft manufacturers have cut production rates dramatically since 2008. Copyright Airbus

One might attribute the striking contrast between the business jet industry’s predicament and the more-than-healthy production rates at major commercial aircraft manufacturers to several factors, but credit and the Asian market seem to rank as the two most prominent.

The business aviation sector has been suffering since 2008. While the upper segment has limited losses and maintained deliveries at comfortable levels, orders remain scarce; it would seem fair to say the entire business aviation industry is caught in the doldrums. Meanwhile, Airbus and Boeing have announced further production-rate increases, to levels of close to 40 per month for the A320 and the 737, starting in 2011-2012. A salesperson at a North American business jet manufacturer told AIN he is simply puzzled by these planned outputs.