Private jets that can fly faster and go longer distances are causing a surge in new corporate-jet purchases. Innovations that have encouraged sales include better fuel-efficiency, roomier, quieter cabins and gadget-packed cockpits that can predict the weather and smooth out turbulant rides.
Business aircraft deliveries are expected to rise 9% this year to about 690, and will climb to about 740 planes next year, according to an annual report from Honeywell international released on Sunday.
The rise in deliveries come as the U.S.-China trade war, the U.K.’s looming break from the European Union, and a shaky global economy threaten to cut the momentum short.
In the meantime, the current gains are a welcome boost for a $20 billion industry that has yet to return to the frothy heights preceding the 2008-2009 recession, when deliveries peaked at 1,300 aircraft. Corporate jets were a prominent casualty of the crash when companies focused on cutting costs and using their cash to buy back shares instead of renewing fleets.
The market got a lift in 2017 when the U.S. approved a new tax break that allowed the immediate write-off of a plane’s total cost, spurring buyers to scoop up used jets.
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