Asian Sky Quarterly 2022 Q1

GLOBAL BUSINESS AVIATION MARKET UPDATE
OEM BACKLOGS
Q4 Backlog at Major Business Jet OEMs
USD Millions
$29,282
Bombardier Gulfstream Cessna
$32,178
$23,611
Dassault and Embraer have not reported as of publication
Q4 2019 Q4 2020 Q4 2021
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Strong demand for business jets drove robust orders for new
aircraft in Q4. With orders surpassing revenue, the industry-wide
book-to-bill ratio was 1.3-to-1 and backlogs increased to $32.2
billion – a 36.3 percent increase from a year earlier. The rising
backlogs have increased lead times for new aircraft, improving
flexibility and manufacturing efficiency for many OEMs. Orders
for new aircraft are being driven by new users to the business jet
market, habitual pre-owned buyers ordering new aircraft due to low
pre-owned inventory, typical replacement and trade up patterns, and
fleet operators who are experiencing demand for their services.
TRANSACTIONS ($ VOLUME)
Business Jet Transactions, 2019-2021
New
$28.2B
(3,129 Units) $26.0B
(3,143 Units)
$11.4B
-7.7%
(2,334 Units) $11.9B
(2,537 Units)
Pre-Owned
13.8%
$29.6B
(3,624 Units)
$15.3B
(2,997 Units)
-4.5%
29.2%
$16.9B
(795 Units)
-15.9%
$14.2B
(606 Units)
0.9%
$14.3B
(627 Units)
2019 2020 2021
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Note that 2021 figures are based on preliminary data and may increase as more transactions are reported.
In 2021, new and pre-owned transaction dollar volume increased
13.8 percent compared to 2020 and increased 5 percent compared
to 2019. The recovery in business jet transactions is being led by
the pre-owned market, which increased 29.2 percent in 2021 from a
year earlier and 34.2 percent from 2019.
The number of pre-owned transactions increased despite low
inventory (which can reduce selection for buyers), demonstrating
both strong demand and buyers’ resourcefulness in finding aircraft
when relatively few options exist on the market. Strong demand
drove the number of 2021 pre-owned transactions to the highest
level on record. It remains to be seen if transactions can continue
at these high levels with continued diminishing inventory levels.
During the early stages of the pandemic, many manufacturers
reduced production due to supply chain issues and anticipated
reductions in demand. In response to strong order activity,
deliveries in 2021 were 0.9 percent higher than in 2020. However,
production remained about 15 percent below 2019 levels as
manufacturers gradually increased production rates. Some
manufacturers expect to return to 2019 production levels in 2022.
FIRST QUARTER 2022 — ASIAN SKY QUARTERLY | 53