Corporate jet manufacturers

Boeing, Gulf Stream and Bombardier dominate the corporate jet market. Technology barriers, the niche dimensions of the market segment and the sluggish world economy, prevent new entrants from joining the fray. Corporate jets have to combine state-of-the-art navigation and communications technologies, with sophisticated avionics and crafts related to interior design and exotic materials, to cater to the fastidious needs of prospective buyers of corporate jets. People who can afford such aircraft have a seemingly endless list of needs ranging from the safety imperative to plush interiors designed to pander to extravagant personal tastes.

Corporate jet manufacturers have extensive infrastructure geared to upgrading and refitting existing aircraft. Technology makes new aids for safer flying available from year to year and no aircraft owner would like to be out of date in this crucial aspect. There is a significant niche for pre-owned jets, as many potential owners do not want to wait for the delivery of a new aircraft- (this can be up to two years.) People and companies who buy such pre-owned aircraft most often want the interiors refurbished to suit their needs and tastes.

Corporate jet manufacturers require computer systems and large projection equipment that helps their clients visualize interiors during the customization phase of production or refitting. Colors, spaces and fabrics have to be evaluated and the ambience experienced by the customer before specifications are frozen.

Though the business of corporate jet manufacturers is so sophisticated and though there are just three big names in the field, profitability has been under pressure during recent times. Large corporations who can afford such aircraft are simply not growing fast enough to keep order books full.

The development of the Russian, Chinese, Indian, South American and African economies can change the picture as these nations and continents, with their large landmasses, can extend the market for corporate jet manufacturers beyond the traditional US base.

The emerging trend of fractional ownership may also augur well for corporate jet manufacturers, as more corporations find it economical to share airtime with like-minded companies or pay deposits in advance to fleet networks. Growing traffic from the US to Cuba may also fuel new demand for small aircraft operating between Miami and Havana.