Ultimate Jet #73 - Phenom 300E Flight Test
After more than 14 years, Ultimate Jet is the leading magazine dedicated to Business Aviation. In this latest issue, an analysis of how business aviation manufacturers faced Covid-19; an interview of Jahid Fazal-Karim CEO of JetCraft; a cabin design review by M&R Design Concepts; and discover the long awaited exclusive Embraer Phenom 300E Flight Test.
After more than 14 years, Ultimate Jet is the leading magazine dedicated to Business Aviation. In this latest issue, an analysis of how business aviation manufacturers faced Covid-19; an interview of Jahid Fazal-Karim CEO of JetCraft; a cabin design review by M&R Design Concepts; and discover the long awaited exclusive Embraer Phenom 300E Flight Test.
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MARKET ANALYSIS I 42<br />
One of the enduring narratives in bizav since the Great Financial<br />
Crisis has been the decline in the market for small and midsize<br />
aircraft and the relative resilience of large cabin, long-range jets. This<br />
was largely enabled by the long bull run in oil prices, which sprang<br />
new business jet demand in Emerging Markets. This offset the overall<br />
drought in demand in mature US and European markets, which had<br />
brutally exposed the smaller aircraft end of the market. The last few<br />
years have seen OEM production lines migrate towards the more<br />
robust top end, typified by Textron, the archetypical light aircraft<br />
manufaturer, launching Latitude and Longitude models into the<br />
Super Mid and Large cabin segments. The impact of the pandemic<br />
has thrown this migration into question. The economic impact of the<br />
virus has precipitated the collapse in oil prices, hobbling the petrodollar<br />
earnings of many emerging business aviation markets, also<br />
hitting the once-booming shale sector in the US. Reinforcing the<br />
economic impact of lower energy prices, the virus effect on public<br />
health will significantly blunt demand for international travel. At the<br />
extreme end, quarantine measueres for all international arrivals will<br />
have a drastic effect on movements. Even with an optimistic pathway<br />
towards relaxing suppression, the absence of a vaccine for at least<br />
the next 18 months is going to see significant decline in international<br />
business and leisure travel. In terms of preference for aircraft type,<br />
the airline industry is already anticipating this effect will show up in<br />
the demise of wide-body sales in favour of narrow-bodies.<br />
For business jet manufacturers, these trends suggest that customers<br />
may decide that midsize and smaller jets offer more versatility and<br />
certainly most cost-acceptability than ultra-long range models. We<br />
may see this trend start to pan out in the next couple of months. For<br />
now, as shown in Chart 4, most of the surviving business aviation<br />
activity has shifted to turboprops.