Chad is the editor of AINalerts, AIN's daily business aviation newsletter, and is also the news editor at AIN Media Group.&nbsp;He has been writing about aviation, with an emphasis on business aviation, since 1994. Chad started his writing career at The Avion,&nbsp;the&nbsp;student newspaper at Embry-Riddle Aeronautical University in Daytona Beach, Florida, serving as editor-in-chief before graduating with a bachelor's in aeronautical science. After a stint as managing editor at Professional Pilot&nbsp;magazine, he joined&nbsp;AIN in late 1998. Chad holds a commercial pilot certificated with instrument and multi-engine ratings, and he also is a CFI/CFII. He lives and works from his home in Venice, Florida.

Online Editor

Chad Trautvetter

According to its latest monthly business jet report, J.P.Morgan expects “measured commentary” when OEMs start to report earnings next week, despite the U.S. economic recovery now under way.

 


The financial firm’s aerospace analysts believe that Textron, parent of Cessna Aircraft and Beechcraft, has the most leverage in this recovery, though the OEM’s earnings report is expected to show flat deliveries for legacy programs and growth driven exclusively by the new Citation Latitude. “We expect deliveries will ultimately exceed this cautious initial guidance,” J.P.Morgan noted.

 


It said fourth-quarter Gulfstream deliveries “look solid, but we do not expect guidance for higher large-cabin deliveries this year due to slower emerging market demand, though the mix should shift toward the G650.” Rival Bombardier revealed strong deliveries for the quarter in a pre-announcement last week, though J.P.Morgan analysts are concerned about pricing pressure. For 2015, the Wall Street firm does not anticipate much delivery growth at Bombardier, “particularly considering the declining Global 5000/6000 backlog.”

 


Meanwhile, the new Legacy 500/450 should drive deliveries this year for Embraer, it said, “but further pressure on the Legacy 650 is a key earnings risk and management has been consistently cautious in its commentary—something that is unlikely to change."

J.P.Morgan Expects Muted Optimism in 2015 Bizjet Guidance

Firm believes Textron, parent of Cessna Aircraft and Beechcraft, has the most leverage in the ongoing economic recovery in the U.S.

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