| The National Business Aviation Association Annual Convention In Las Vegas In October 2011. |
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It was again dominated by desperate challenge in finding some good news as the worlds economic crisis appears to deepen with the General Aviation Manufacturers Association (GAMA) reporting continued sales slides. As always at NBAA however, the halls did their to celebrate the morsels of good news, which everyone fervently hoped would indicate, not a turnaround but some sign that the numbers could not get worse. GAMA released their second quarter statistics in August, which revealed total general aviation shipments worldwide fell 15.5 percent from 936 in 2010, already considered a tough year, to 791 in 2011.Billings were down by 22.3 percent, or US $ 7.3 billion. America, to many international observers, appears hell bent on self destruction with little government unity in attempts to solve the vast national budget deficit. Depending on which way you look at it, the business jet community is not always focused on the global economic sword of damocles hanging over it with US President Barack Obama targeting punitive charges on private and private business jet operators. GAMA say the industry has been singled out by the administration although it seems the Democrats are searching for any form of relief to help the nations huge debt challenge. At issue is the current five year depreciation facility available to business jet owners.Obama says this presents a ‘tax loophole’ and the period should be extended to seven years. Predictably, industry representatives urge that the minimal revenue generated will have a negligible effect on the deficit and loudly complain that similar attention has not been given to operators of car fleets, buses and trucks. Much of NBAAs efforts are now directed at stopping any such move to alter the depreciation period. Worst hit by the further decline in shipments are business jets-down by a whopping 26.5 percent. Piston and turboprop engines are down by over 8.5%. NBAA nevertheless boldly proclaimed the 2011 event a resounding success. They supported the claim by pointing out an increase in both attendees and exhibitors, although in terms of deals, there were also topical including approaching environmental legislation, especially from Europe, which will have significant effects on US manufacturers. Of great significance is the ‘China effect’ amongst the worlds business jet manufacturers .Many see the rise of the Chinese dragon to be the industry’s current savior and many are investing heavily to take advantage of a forecast boom in aircraft sales as well as an increase in associated service and facilities .CEO of the China Business Aviation Group, Jason Liao, spoke before a large gathering of media and industry representatives. Few appear to have any reliable numbers on how this market will emerge, especially when the Chinese military relax their hold over further blocks of airspace. Banking personnel closely involved with general aviation say there were only 28 jets based in the peoples Republic of China in 2008. The following year there were 46 and today, there are over 90.Many believe over 1000 will have found a home in this highly populated and vast nation within 10 years. All major manufacturers are reporting increased interest and sales activity from this part of the world. Minsheng Financial Lea sings spokesman, Zgang Bo, said US $ 2.6 million worth of orders had been placed during NBAA 2011. Many barriers remain in China, including the difficulty in retaining trained crews. Maintenance facilities are also scarce and fuel shortage prevails at many national airports. With the convention taking place off-airport at the Las Vegas Convention Centre, for the first time a dozen aircraft were towed along the highway from nearby McCarran International Airport to provide a static display close to the entrance. Further static displays were located at Henderson Executive Airport where 90 aircraft were on show to visitors. Whilst there was plenty to see despite the spread of static displays, aircraft orders were scarce, even though many companies tend to use the convention to ‘collect ‘announcements .An early news item was the 30-aircraft order for Piper Seminoles’ for training company, Airline Transport Professionals. This represented a welcome and much needed US$ 18 million deal for the piston engined sector. Piper recently announced they were suspending development of their Altaire Very Light jet, which was a surprising turn of events considering the company’s assurances that financing was in place to certify the model. The Altaire has been much mooted as being a great product to satisfy VLJ demand in China-proof that few have any real insight into how this market will emerge. Bombardier appeared to be under pressure to raise sufficient funding to continue development of its four new business jets. These include the Global 7000 and 8000, parts of which will be manufactured in Queretaro,Mexico. The situation is not helped by desultory Learjet sales, forcing the Toronto-based manufacturer to draw down US$ 1 billion of its US$ 7 billion cash reserves. The need for development cash has been reflected in a reduction of 43% in Bombardiers tock market value. Dassault has also been badly hit by the recession, reporting deliveries down by a significant 44% over 2010. The French has only company delivered 19 aircraft to June last year compared to 45 during same period 2009.However 22 orders have been received during the first half of 2011. Better news appears to have emerged from Boeing, which has sold a total of 205 Boeing Business Jets (BBJs) since the concept of private jet airliners was born with the launch of its 737 BBJ. Boeing appears to have a healthy backlog, although it mostly consists of wide-body types like the 747 and 787. Next years Orlando Florida event represents the 65th NBAA convention .No one is predicting or seeing any signs that the deep recession is recovering and whilst there is hope that the Far East will show the way forward in terms of market development and thus revenue, any meaningful domestic recovery is seen as being at least two to three years way. Air operators are striving through recession to remain afloat in the business jet operations. The recent National Business Aviation Association convention in Las Vegas deliberated on issues affecting the business jet business. The Convention was critical on discussing issues affecting the air transport industry and how to overcome them. Anthony Juma is the Editor and Senior Aviation Director at Wings Over Africa Aviation Limited. <br><a href='http://www.wingsoverafrica-aviation.com’> This is an Air Charter Company that specializes on Air News On The National Business Aviation Associations Annual Convention Held In Las Vegas Held In October 2011. </a> The website has guided thousands of travelers to achieve their dream holiday. For more information and guidance, visit the site at http://www.wingsoverafrica-aviation.com/index.php/flight-news.html</a>
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