Asian Sky Quarterly 2022 Q4
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GLOBAL BUSINESS AVIATION MARKET UPDATE<br />
OEM BACKLOGS<br />
<strong>Q4</strong> Backlog at Major Business Jet OEMs<br />
USD Millions<br />
Bombardier Gulfstream Cessna<br />
$32,178<br />
$40,277<br />
$23,611<br />
Dassault and Embraer have not reported as of publication<br />
<strong>Q4</strong> 2020 <strong>Q4</strong> 2021 <strong>Q4</strong> <strong>2022</strong><br />
ix<br />
OEMs had a strong year in <strong>2022</strong>, with orders from new users<br />
entering the business jet market, habitual pre-owned buyers<br />
electing to order new aircraft due to low pre-owned inventory,<br />
typical replacement and trade up orders, and fleet operators<br />
experiencing increased demand for their services. Despite slowing<br />
a bit in <strong>Q4</strong> <strong>2022</strong>, growth continued. The industry-wide book-to-bill<br />
ratio remained above 1-to-1 in the quarter. While orders were not as<br />
strong as in the beginning of <strong>2022</strong>, they hovered around historical<br />
norms. At the same time, year-end deliveries were high, a normal<br />
practice for the industry. The result of normalizing orders and high<br />
deliveries was a decline in the book-to-bill ratio in the quarter.<br />
TRANSACTIONS ($ VOLUME)<br />
Full Year Business Jet Transactions<br />
New<br />
$32.3B<br />
(3,964 Units)<br />
Pre-Owned<br />
$34.1B<br />
(3,364 Units)<br />
$26.0B<br />
(3,142 Units)<br />
$11.8B<br />
(2,536 Units)<br />
24.1%<br />
40.9%<br />
$16.7B<br />
(3,243 Units)<br />
5.5%<br />
14.6%<br />
$19.1B<br />
(2,709 Units)<br />
$14.2B<br />
(606 Units)<br />
10.0%<br />
$15.6B<br />
(721 Units)<br />
-4.2%<br />
$15.0B<br />
(655 Units)<br />
<strong>Q4</strong> 2020 <strong>Q4</strong> 2021 <strong>Q4</strong> <strong>2022</strong><br />
x<br />
Note that <strong>2022</strong> year-end figures reflect preliminary FAA data and may increase as more transactions are reported.<br />
Throughout <strong>2022</strong>, buyers acquired new and pre-owned aircraft at<br />
a strong pace. The total number of new deliveries and pre-owned<br />
transactions declined 15.1 percent in <strong>2022</strong> compared to 2021.<br />
However, <strong>2022</strong> transactions were 7.1 percent higher than 2020 and<br />
7.5 percent higher than 2019. The pace of transactions in 2021<br />
was not sustainable, given the substantial decline in pre-owned<br />
inventory and continued supply chain disruptions affecting new<br />
aircraft production. The strength of the market in <strong>2022</strong> compared to<br />
previous years, however, demonstrated the continued demand for<br />
business jets among fleet operators and individual users.<br />
Even as unit volume declined in <strong>2022</strong>, dollar volume increased 5.5<br />
percent due to rising aircraft prices. The increase in dollar volume<br />
was largely in the pre-owned market, driven by increases in trading.<br />
54 | GLOBAL SKY QUARTERLY — FOURTH QUARTER <strong>2022</strong>
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