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United States : DEMAND for light business jets improves in Q1

May 5, 2014

Corporate earnings reports have given evidence of enhancing market conditions in the long-depressed light jet segment in the first quarter of 2014, but yet not enough to raise deliveries.

Scott Donnelly, Textron chief executive who manages Cessna and now Beechcraft, recalled how just a year ago Cessna had to decrease Citation Jet production rates, as all the market signs continued to point to lower demand for small, twin-engined aircraft.

Donnelly, speaking on a conference call with analysts said, As we sat here a year ago, we were kind of concerned about what we were seeing in the market. While the overall numbers are not a lot higher in terms of unit deliveries, we certainly feel better about where we are going in the market.

The parent of Textron Aviation, which includes Beechcraft and Cessna, has been tracking availability and pricing in the used market, and they seem to have stabilized after a long free-fall in the aftermath of the 2008 financial crash and never recovered.

Donnelly says, We feel better that pricing has firmed in the used market. We feel better that pricing is better in the new market as well.

Bombardier, Learjet owner released an encouraging set of first quarter tracking data of the business jet industry.

The inventory of used light jets, as a percentage of the fleet, had stayed stubbornly above what Bombardier considers normal market levels until the first quarter.

After peaking at 14.3% of the overall light jet fleet in the third quarter in 2014, the inventory of used aircraft for sale decreased to 13.2%, which falls within the range that Bombardier considers normal.

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Source: TendersInfo (India)

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