Strong corporate profits and steady orders from China, Russia, India and other fast-growing countries are driving continued demand for business jets, according to Frost & Sullivan's ''World Business Jets Market: Investment Analysis'' released yesterday.
According to the report, the top 20 companies in the world business jet market earned $18.03 billion in revenues last year. The report estimates that revenues are likely to reach $22.56 billion in 2009.
''Previously, the increase in demand for business jets lagged one to two years behind corporate profit increases. At present, both the demand for business jets and the increase in corporate profits rise in tandem,'' says Frost & Sullivan senior research analyst Rani Cleetez.
For the first time ever, last year also marked the first time ever that regions outside North America generated the majority of business jet orders. This is a significant shift from the past where the US and Canada generated about three-quarters of these sales.
While the business jet market is expected to remain healthy, Frost & Sullivan warn that ''constant terrorist threats, limited infrastructure, shortage of cabin-completion capacity and the lack of quality employees pose formidable barriers to continued market expansion.''