Business jet makers face battle on pricing as deliveries drop

Thu May 26, 2016 8:36am EDT
 
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* Industry deliveries to drop 10 pct in 2016 - Bombardier

* Buyers in Middle East, Brazil, Russia hesitant

* Makers cut output to protect prices

By Cyril Altmeyer

GENEVA, May 26 (Reuters) - Business jet manufacturers are locked in a price battle as deliveries of new aircraft remain weak and recently sold aircraft come back onto the market at attractive prices, delegates at an annual corporate jet convention said.

Demand for business jets reflects the health of economies and makers of corporate planes have been hard hit since the financial crisis.

Bombardier, unveiling its 10-year market forecast at the EBACE show in Geneva, projected industry deliveries to drop 10 percent this year to 540-560 jets after rising 1 percent in 2015. That compares with the peak of 811 deliveries in 2008.

"There is more offer than demand, there are too many airplanes in production," said Marco Tuilo Pellegrini, president and CEO of Embraer Executive Jets, highlighting competition from the market for used jets.

"The price war is being felt across the whole range," Eric Trappier, CEO of Dassault Aviation, told Reuters.   Continued...