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Honeywell sees steady business jet sales over 10 years

Published 2017-10-08, 08:15 p/m
© Reuters.  Honeywell sees steady business jet sales over 10 years
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Oct 8 (Reuters) - The business jet market is expected to get a tailwind from the global economy's steady pace of growth and as Corporate America upgrades to newer aircraft.

Aero parts maker Honeywell International Inc (NYSE:HON) HON.N said on Sunday that it expected deliveries of 8,300 aircraft worth about $249 billion between 2017 and 2027, assuming that the world economy grows at 3.1 percent on average over the next 10 years.

The company said starting in 2019, business jet sales are likely to see a steady growth of 3 to 4 percent for about eight to nine years.

However, Honeywell said it expected 2017 deliveries to fall by about 30 aircraft, compared with a year earlier.

Business jet shipments have struggled to recover after the financial crisis, having been cut in half from their peak of 1,317 in 2008 to 661 in 2016, according to General Aviation Manufacturers Association.

Aircraft sales fell in 2016 as economies sputtered, companies slashed their spending and oil tycoons retrenched due to weak oil prices.

Honeywell said it was expecting much of the growth in business jet sales in the coming decade to be fueled by introduction of new aircraft.

"There are several new and exciting aircraft models coming to market, which will drive solid growth in new business jet purchases in the midterm and long term," said Ben Driggs, president, Americas aftermarket, Honeywell Aerospace.

More than 60 percent of business jet sales are replacement aircraft for current owners.

The company said business jet operators continued to focus on larger-cabin aircraft - ranging from the super mid-size through ultralong range - which are expected to account for more than 85 percent of new business jet sales in the next five years.

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