GA orders fell sharply last year, GAMA says
March 9, 2010, 07:50 pm
The number of orders for new general aviation aircraft dropped 42 percent in 2009, the Wichita Business Journal reported last month.
The steep decline in new-aircraft orders can likely be credited to the tepid economy. Last year, the Commerce Department says, the U.S. economy shrank by 2.4 percent, and joblessness rose into double-digit territory late in the year.
While unemployment is still high and economic recovery is occurring slowly, there are green shoots in today's economic news - and that could bode well for GA sales. Gross domestic product grew in the second half of 2009 and unemployment declines appear to be slowing.
Among GA aircraft companies, General Aviation Manufacturers Association chairman Rob Wilson said at the group's annual meeting in mid-February, things are looking up. Used-aircraft inventory is shrinking, he said, and "flying hours are on the rise and inquiries for new orders are beginning to grow again."
But, at GAMA's meeting, Cessna chief executive Jack Pelton noted that the sector may not grow until 2011. "We do not anticipate this growth to be anything but gradual," he was quoted as saying.
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