ITC Report Says U.S. Business Jet Manufacturers Face Uncertain Future
The U.S. business jet manufacturing industry is facing tightened credit, uncertain government R&D funding, and new entrants into the industry, said the International Trade Commission in its report “Business Jet Aircraft Industry: Structure and Factors Affecting Competitiveness.” According to the report, which covers the period 2006-2010 with data from 2011 as available, deliveries of business jets have fallen significantly from the all-time high in 2008 and, although the U.S. industry and market are the world’s largest, the share of global production and market held by the U.S. declined during the period. Customers for the very light and light business jets, the market segments in which U.S. producers are most active, were the hardest hit during the recent recession, said the ITC.
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Regional demand, new entrants into the industry, workforce characteristics, government regulations pertaining to the environment, airspace usage, and aircraft user fees will all impact the future competitiveness of the U.S. business jet industry, said the report. In some cases, said the ITC, the impact of these changes, such as the opening of airspace in China, may benefit U.S. industry, whereas other changes, such as a proposed aircraft user fee in the United States, may pose challenges. Export credit agencies such as the U.S. Export-Import Bank are available sources of funding for export sales of business jets, said ITC, and are likely to play an increasing role in providing sales finance to the industry.
Full ITC report available here.