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Too Many Jets, Too Few Dollars

by John M. White |

Well, it seems that despite the rosy outlook Honeywell predicted a short time ago that the world wide recession is hitting that giant China.  China has announced that it's booming aircraft industry has hit the wall, just like the American manufacturers, and that overcapacity is forcing it to halt all future aircraft orders until the overcapacity problem can be solved. CSeries

It seems there are more aircraft manufacturers and aircraft than the world market can absorb, and with huge losses on fuel hedges and mergers the Chinese government has invested some $ 540 million into just one of it's airlines.  Seems it is tough to make money in the airline industry.  Surprise, surprise, eh?

For the moment most airline aircraft manufacturers can only hope to hang on to the orders they already have, and not count on future orders.  With the Chinese airline problem growing companies like Bombardier who had expected to see significant sales in China are concerned as future orders become questionable.

I guess it does not matter whether you are trying to sell piston powered aircraft (whose sales have fallen by 50%), very light jets (whose manufacturers are going bust) or new wide bodied regional jets the aircraft business is in dire straights.

Bailout money please?  Anyone?

Until next time keep your wings straight and level Hersch!

JetAviator7

When it comes to testing new aircraft or determining maximum performance, pilots like to talk about "pushing the envelope." They're talking about a two dimensional model: the bottom is zero altitude, the ground; the left is zero speed; the top is max altitude; and the right, maximum velocity, of course. So, the pilots are pushing that upper-right-hand corner of the envelope. What everybody tries not to dwell on is that that's where the postage gets canceled, too.

— Admiral Rick Hunter, U.S. Navy.





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