According to a Reuters report, the head of aircraft maker Gulfstream Aerospace said that US trade tensions have slowed opportunities for business jet deals in China, in the event of a decline in demand in an optimistic global market for private jets. US-based Gulfstream Aerospace, a division of General Dynamics, is set to increase production of its private jets through 2029, supported by strong US demand and new aircraft models coming to market, President Mark Burns said.
Read also: The halt of US port duties on China sparks a sharp division in the industry
Burns said he sees broader global power, but US trade tensions with Beijing have “certainly slowed down a number of opportunities” in China, where the US planemaker has about 150 planes flying. “It’s a good market for us,” Burns said. “But you know, obviously the trade tensions are creating some slowdown in this market. So I’m hopeful that something will get done in the near future.”
China and the United States have taken steps to ease tensions in recent days following a meeting between US President Donald Trump and Chinese President Xi Jinping.
Business jet makers are seeing order books growing after demand for private aviation by high-net-worth individuals grows during and after the coronavirus (COVID-19) pandemic. In the United States, affluent consumers remain resilient, even as lower-income customers reduce their purchases. Gulfstream is also seeing increased demand from Fortune 500 corporate clients, after quarters of strong results, Burns said.
Burns said Gulfstream can expect to increase its share of the expanding private aviation market by certifying and entering service the company’s recently announced G300 midsize jets, which fly up to 10 passengers and will compete with Bombardier Challenger 3500 jets. Gulfstream has not disclosed a date for certification and entry into service.
Burns said Gulfstream expects to increase aircraft production through 2029, following the company’s long-term plans, assuming demand remains strong and the supply chain has capacity. “Our plans are to continue growing,” he added. “The supply chain right now supports this ability to grow.”
Source: Market intelligence platform IndexBox
