Research PREVIEW forGlobal Business Aircraft Market

Global Business Aircraft Market Recovers as Economic Conditions Stabilize

Executive Summary --- Key Findings

• The number of pre-owned aircraft for sale is a trend indicator for new business aircraft demand. The number has been declining, and pre-owned aircraft prices remain fairly low. This creates a gap between new and pre-owned aircraft pricing that restrains new aircraft purchases.

• Asia Pacific, China, India and the Middle East have become the most significant growth areas for the business aircraft market, but North America and Europe remain the largest markets.

• Modifications tend to be reduced in scope, but modification facilities in North America and Europe are booked up through the foreseeable future.

• New deliveries of large airframes are at record levels and is the major market sales area.

• The medium jet market has started to recover, predominantly in the longer range portion. Light jet market growth is still small, but there is some hope for market growth.

• The aircraft manufacturers are careful with their production rates. Estimates of future production rates are restrained.

• The “Great Recession” has changed the business aircraft business model. In 2007, virtually every type of business aircraft usage was said to be growing.

Source: Frost & Sullivan analysis.

Drivers and Restraints

Source: Frost & Sullivan analysis.

Dri

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Dri

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Total Business Aircraft Market: Key Market Drivers, Global, 2014-2020

Drivers 1–2 Years 3–4 Years 5–7 Years

Reduced recent purchases drive demand for new aircraft. H H H

Asian economic growth may drive significant aircraft demand in later forecast years.

M M M

Operating efficiency of new designs drives sales. L L L

Total Business Aircraft Market: Key Market Restraints, Global, 2014-2020

Restraints 1–2 Years 3–4 Years 5–7 Year

Reduced flight hours substantially reduce growth in both MRO and modification spending.

H H H

Western economic stagnation reduces the number and extent of modification programs and new aircraft acquisitions.

H M M

Industry consolidation reduces innovation and new product design.

M M M

CEO’s Perspective

2 Asia and Latin America are the primary growth regions.

3 Heavy airframe aircraft is the largest portion of the market.

4 Included in full research access.

1 Three companies comprise nearly 75 percent of the market share.

Source: Frost & Sullivan

The Full Analysis Features the Following Content

Section Slide Numbers

Executive Summary 5

Market Overview 9

Total Market -

• Drivers and Restraints 14

• Forecasts and Trends 19

• Market Share and Competitive Analysis 29

Heavy Jet Segment Breakdown 35

Medium Jet Segment Breakdown 40

Light Jet Segment Breakdown 45

Turbopro Segment Breakdown 50

Business Model Assessment 55

North America Breakdown 66

Europe Breakdown 70

Asia Pacific Breakdown 74

Middle East and Africa Breakdown 78

The Full Analysis Features the Following Content (continued)

Section Slide Number

Latin America Breakdown 82

The Last Word 86

Appendix 89

Key Information Slides in this Research

Source: Frost & Sullivan

Executive SectionExecutive Summary Total marketKey Findings Total market

Market Engineering Measurements

Total market including: market stage, market revenue for base year,

market size for last year of study period, base year market growth

rate, compound annual growth rate

CEO's Perspective Total marketMarket Overview

Market Overview Total marketMarket Definitions Total marketKey Questions This Study Will Answer

Total market

Market Segmentation Areas-Pie Chart

Segments: components, large, medium, light and turboprop

Drivers and Restraints--Total MarketMarket Drivers Total marketMarket Restraints Total market

Forecasts and Trends--Total MarketMarket Engineering Measurements Total marketForecast Assumptions Total marketUnit Shipment and Revenue Forecast

Total market

Percent Revenue Forecast by Country or Region

Total market split by region: NA, LA, MEA, Europe, and APAC

Revenue Forecast by Country or Region

Total market split by region: NA, LA, MEA, Europe, and APAC

Country, Regional, or Global Hot Spots

Total market

Revenue Forecast by Vertical Market Total market split by vertical market

Market Share and Competitive Analysis--Total MarketMarket Share and Competitive Analysis--Total Market

Total market

Market Share Total marketMarket Share Analysis Total marketCompetitive Environment Total marketTop Competitors Total market

Segment breakdown

Segment Key FindingsSegments: heavy, medium, light,

turboprop and services

Market Engineering MeasurementsSegments: heavy, medium, light,

turboprop and services

Unit Shipment and Revenue ForecastSegments: heavy, medium, light,

turboprop and services

Provider SnapshotSegments: heavy, medium, light,

turboprop and servicesRegion Breakdown

Country or Region Key FindingsRegions: NA, LA, MEA, Europe,

and APAC

Unit Shipment and Revenue Forecast Regions: NA, LA, MEA, Europe,

and APACThe Last Word

The Last Word--3 Big Predictions Total market

Key Questions This Study Will Answer

Have cessations of business activities reached a logical conclusion?

Can aircraft manufacturers expect new models to gain additional sales?

Will price point pressure drive less functionality?

Do very light jets have much of a future?

Will production of new aircraft eliminate the need for modifications?

What effect will the reduction of OEMs have on the aircraft price point?

Source: Frost & Sullivan

Total Business Aircraft Market: Key Questions This Study Will Answer, Global, 2014-2020

Interested in Full Access? Connect With Us

Kayla Belcher Corporate Communications – North America

210.247.2450

kayla.belcher@frost.com

Research Authors

Wayne PluckerResearch Director

Aerospace and Defense

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