As Business Prospers, So Do Bizjet Makers
Business analyst Frost and Sullivan says there's no end in sight to increased corporate profits so business jet manufacturers can expect to ride the current boom for some time. In fact, corporations are so confident about future profitability, they're ordering jets in anticipation of having the money to pay for them. "Previously, the increase in demand for business jets lagged one to two years behind corporate profit increases. At present, both the demand for business jets and the increase in corporate profits rise in tandem," Frost & Sullivan senior research analyst Rani Cleetez told Jets.ru.
The world's top 20 companies are expected to earn profits of $22.5 billion in 2009 as they shake off the doldrums that were associated with the 9/11 hangover. However, the impact of 9/11 illustrated just how sensitive the market can be to that kind of uncertainty and Frosh and Sullivan is quick to point out that all bets are off if something of similar importance rocks the world in coming years. It also sees a lack of infrastructure, the shortage of finishing centers for aircraft and shortage of skilled workers as challenges facing the bizjet industry.