Consultant Sees Bizjet Consolidation
Business consulting firm AlixPartners predicts consolidation in the corporate aircraft sector as prolonged slow growth becomes the "new normal" in the aerospace sector in general and the bizjet market in particular. The firm released a study on the industry's outlook on Tuesday and says the future looks especially hard for business aircraft makers. "Business jets face an even tougher environment, while also still trying to shake the 'politically incorrect' stigma of a year ago," spokesman Phil Toy said in a news release. In an interview with Dow Jones Newswire, Eric Bernardini, managing director of the firm, said there are too many bizjet companies fighting over too few orders.
He told Dow Jones production dropped 34 percent among OEMs and the fractional business, which accounts for a significant portion of bizjet orders, has also been hard-hit. In general, he said, manufacturers are going to have to adopt different business, engineering and production models to stay afloat in the lean times ahead.