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Industry optimistic for a turnaround in 2011

Industry optimistic for a turnaround in 2011

WASHINGTON, DC, February 22, 2011 – Today, the General Aviation Manufacturers Association (GAMA) announced the 2010 worldwide shipments and billings of general aviation airplanes. Speaking at GAMA’s “State of the Industry” press conference, GAMA Chairman John Rosanvallon, president and CEO of Dassault Falcon, reported that the global economic downturn continued to negatively impact general aviation manufacturers in 2010, but that signs of a recovery have started to emerge. “Our industry experienced another challenging year that required many manufacturers to continue to make careful decisions about production schedules, employment and product development,” said Rosanvallon. “However, despite the pain caused by the downturn, we are now seeing strong GDP growth on a global level and corporate profits are up. This bodes well for general aviation’s future as shipments have traditionally lagged an economic recovery by one to two years.” Rosanvallon also underscored other indicators that point to a turnaround. He added, “Markets other than North America and Europe are leading the global recovery, flying hours are steadily on the rise, and there are two critical U.S. tax provisions in place that will help our industry recover.” He concluded, “Two areas of concern continue to be the sluggish used market and the lack of third-party financing, especially for the middle and light end of the business jet segment, as well as turboprops and piston engine powered airplanes.” Worldwide shipments of general aviation airplanes declined for the third year in a row to a total of 2,015 units, an 11.4 percent decrease over the previous year’s total of 2,274 airplanes. Worldwide general aviation billings, nevertheless, rose by 1.2 percent in 2010 to .7 billion. 2010 was the third best year ever for total industry billings, which was driven by deliveries of long-range, large-cabin aircraft. This part of the business jet segment remained relatively stable during the recession with their delivery rates actually increasing in 2010. The piston airplane segment shipped a total of 889 units in 2010, compared to 963 units in 2009, a 7.7 percent decline. The turboprop sector was down 17.7 percent, shipping 363 units in 2010, compared to 441 units the previous year. The business jet sector declined 12.3 percent with 763 airplanes shipped, compared to 870 airplanes in 2009.

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