In a press release by AlixPartners on July 6th the authors note that business jets face a tough environment while trying to shake the stigma of business jets politically incorrect.
The report notes the continued weak demand for business jets as corporations remain skittish about profits and wonder what the future holds in terms of the national debt, taxes and the upcoming health care changes. Without certainty about the future businesses remain cautious about expansion and hold lingering fears about the economic recovery prospects here in the U.S. and around the world. While most of the report focused on the airline and defense industries, the remarks about mergers and acquisitions (M&A) indicate that perhaps fractionals and buinesses may find merging flight departments and operations necessary to survive in the upcoming environment. At the same time Cessna Aircraft's parent company Textron has indicated confidence in the future and has indicated that it will introduce new models and upgrades to existing models as early as next year. Textron CEO Scott Donnelly said work is already under way on the recovery plans.
Meanwhile battles rage over the replacement for 100LL Avgas and the implementation of ADS-B with its impact on general aviation. One thing is for sure: it's going to get interesting! All of which goes to prove the old adage "Stick around a few minutes and things are bound to change." Until next time keep your wings straight and level Hersch! JetAviator7 ps: Don't forget to sign up for our newsletter "All Things Aviation" here!