Business or private jets were first introduced in the 1930s when light passenger planes were used to transport businessmen and politicians. But the sector significantly transitioned in the 1970s when companies decided to develop jets specifically for business travel. Presently, numerous manufacturers are competing with faster, more luxurious jets in the market. Driven by these advancements and several others, Inkwood Research predicts that the global business jets market is set to propel with a 3.9% CAGR during the forecast period, 2023-2032.
This blog discusses the top 3 manufacturers of business jets globally and some of their key strategic initiatives.
Strategies Adopted by Top Manufacturers
AIRBUS SE
Airbus SE was founded in 1970, with headquarters in Leiden, Netherlands. Recently they’ve simplified their organizational structure and entered several contracts. TwoTwenty large jets based on their A220-100 business class can go over 10,000 kilometers.
In February 2023, Tata Group-led Air India signed mega agreements with Airbus SE to supply about 250 new planes. By the second half of 2023, Air India is expected to receive 40 widebody A350s and 210 single-aisle A320neos worth over $50 billion. As per Christian Scherer, Chief Commercial Officer and Head of International of Airbus SE, “…The A350’s unique capability will unlock the pent-up potential of India’s long-haul market. Its technology, long reach and second-to-none comfort will enable… better economics and enhanced sustainability. Alongside the A350s, the A320 Family fleets will be the efficient, versatile asset to continue democratizing and decarbonizing air travel in the country – from domestic, regional, up to international levels.” (Source)
The A350 is an efficient wide-body aircraft in the 300-410 seat category. This aircraft features advanced technologies and aerodynamics, facilitating better fuel efficiency, lower operating costs, and reduced carbon dioxide emissions compared to its predecessor. Further, Airbus says the A350 boasts a 25% advantage over its competitors.
BOEING
Boeing is one of the most renowned aerospace companies in the world. Founded in 1916, they have been manufacturing telecommunication systems, rockets and planes ever since. According to Boeing, over 70% of government customers worldwide chose a Boeing Business Jet (BBJ) for its head-of-state business jet. Boeing Business Jets won the prestigious 2020 Design et al. Yacht & Aviation design award competition for building business jets for the Dutch government and was placed first among multiple competitors in the Interior Design/VIP Completions category.
In February 2023, Boeing and Air India agreed on a deal involving 220 airplanes (10 777Xs, 20 787 Dreamliners and 190 737 MAXs) and 50 additional 737 MAX options and 20 787-9s. Stan Deal, president and CEO of Boeing Commercial Airplanes, commented, “Air India’s selection of Boeing’s family of passenger jets shows their confidence in our products and services in the world’s fastest-growing aviation market… With the industry-leading fuel efficiency of the 737 MAX, 787 Dreamliner and 777X, Air India is well positioned to achieve its expansion plans and become a world-class global airline with an Indian heart.” (Source)
BOMBARDIER
Bombardier was founded in 1942 with headquarters in Montreal and specialized in public transportation services. In December 2022, it secured a contract worth $267 million for 10 Challenger 350 aircraft – their largest deal of 2020 – and two Challenger jets ($105 million) to replace aging planes of the Canadian Armed Forces. Also, Bombardier exceeded its 2021 targets on all guided metrics, with revenues surpassing $6.9 billion – a 14% increase year-over-year, mainly due to higher deliveries of aftermarket services which tallied $1.5 billion for 2022 alone. (Source)
Furthermore, Bombardier expects to boost business jet deliveries by at least 15% by the end of 2023 as strong demand for private flying drives the company’s resurgence. In 2023, the company plans to deliver more than 138 jets and target revenue of over $7.6 billion, a more than 10% increase over 2022. In speaking on a full-year earnings call, Chief executive Eric Martel said, “As we see the market stabilizing, we are not going to over tweak our rates. We will stick to the plan and ensure our production is de-risked.” (Source)
All in All
The business aviation industry is home to various manufacturers, each with unique strengths and offerings. When evaluating potential business jet manufacturers, it is crucial to consider safety, reliability, performance, and value factors. By partnering with a reputable and innovative business jet manufacturer, businesses enjoy the benefits of private air travel, including enhanced productivity, convenience, and flexibility. As the market evolves and new technologies emerge, staying updated on the latest global business jets market trends and advancements is crucial.
FAQs:
What are some of the latest trends in the global business jets market?
Digitization of the business aviation sector and the increasing popularity of membership programs, on-demand chartering, and fractional ownership are some of the latest trends in the global business jets market.
What are the key growth restraining factors of the global business jets market?
Negative impacts of trade wars, lack of infrastructure, and concerns about MRO labor capacity in aviation are the key growth restraining factors of the global business jets market.