Analysts Bullish On Bizjets
Some analysts disagree with a Rockwell Collins forecast and are predicting a return to more normal business in 2014. At the International Corporate Jet Finance conference in London on Tuesday, several analysts interviewed by Bloomberg said sales will improve. “There is a lot of pent-up demand,” said Rolland Vincent, director of forecaster Jetnet iQ. “2014 is going to be a good year.” He said manufacturers will deliver 6 percent more aircraft in 2014 over 2013 with a book value of $21 billion. As we reported last month, Rockwell Collins said it didn't see any real improvement until 2016 because of stubbornly high inventories of used bizjets.
At the London conference, other analysts agreed the economy is on the rebound and business jet sales will follow. “We are entering the first phase of a period of stability,” Bradford von Weise, Citi Private Bank head of aircraft finance, said at the event. “The economy is in good shape to grow and sustain overall heavy asset purchases including business jets.” Currency fluctuations in some countries may slow demand there but overall the picture looks positive. “Optimism in the U.S. and European market will carry us through,” said Tom Perry, Cessna's VP of sales for the Middle East, Europe and Africa.