There has been a lot of discussions over the last few years about the troublesome pilot shortage in the Airline Industry. The fact that a shortage of commercial pilots will affect other segments of aviation hasn’t been at the forefront of these types of talks though. Corporate Aviation is making a comeback and that industry will need to compete for the shrinking pool of qualified pilots as well.
“The business aviation market is just starting to recover,” Teal Group vice president for aerospace analysis Richard Aboulafia said this morning during an aerospace and defense outlook teleconference. “Companies are making record profits and are literally stuffing about 7 percent of this cash under their mattresses,” meaning many have available capital that could be readily deployed to purchase business jets. He is also encouraged by the declining inventories of pre-owned business aircraft.
Aboulafia is forecasting a 12-percent compound annual growth rate for business aircraft through 2017.