Honeywell Predicts Moderate Growth for Business Jets
Honeywell Aerospace, a subsidiary of the larger American multinational conglomerate Honeywell International, expects considerable growth in its business jet industry in the foreseeable future. Between 2011 and 2021, Honeywell estimates approximate sales exceeding $230 billion from business jets alone, according to its 20th edition of the annual Business Aviation Outlook.
Although this represents only a 2% increase from the company’s previous 10 year sales estimate which was forecasted in 2010, this still accounts for substantial growth in the saturated aviation market. In 2011, Honeywell Aerospace expected delivery on anywhere between 600-650 new business jets, which is a 15% decrease from the 732 jets delivered in 2010. Deliveries are expected to increase on a yearly basis as the economy recovers from the recent recession and begins another period of expansion and growth. Based on this trend, Honeywell expects the percentage of purchase expectations to remain at 30% in most regions of the world, with 80% of purchase expectations to occur in 2013 and onward. Sales are the strongest in countries such as Brazil, Russia, India, and China. Honeywell’s sales estimates reflects not only steady growth in the business jet market, but also reflects forecasts of major changes taking place in the industry, especially with the introduction of more light medium, ultra long range, and super midsize business aircraft.
Honeywell International, the parent conglomerate company, is a publicly-traded S&P 500 Component company that is involved in a large number of different commercial and consumer products as well as engineering services and aerospace systems. Their customers range from major corporations and governments to private consumers. Honeywell was listed a Fortune 100 company, ranking 77th as of 2012. They employ a workforce of 130,000 around the globe, with 58,000 employed in the United States. Honeywell International was actually formed back in 1999 as a result of the merger between Honeywell Inc and Allied Signal, which was an American aerospace, automotive, and engineering company valued at $15.1 billion. Although Allied Signal was much larger, they opted to keep the Honeywell brand name due to more brand name familiarity among consumers. Their annual revenue is reported to be $37.665 billion. The current CEO is David M. Cote.