Forecasting of future sales is part art, part science, but when a major public corporation like GE makes such a definitive statement, it matters. The pronouncement of companies regulated by the SEC can impact the price of its shares; so, when it releases numbers which correlate with future GE earnings, that analysis has been carefully vetted. When GE issues a forecast that future engine sales will increase, that is a real number.
No segment of aviation has taken a bigger beating since 9/11 than the turbine powered, noncommercial aircraft. Increased fuel prices, efforts to impose a “user fee”, new security rules, Congressional criticism of the use of corporate aircraft and the economy’s problems have all negatively impacted this segment also known as business aviation.
Thus, the GE report that sales are on an incline is GREAT news. The substantial order books cited in their analysis is hard evidence of this trend. Equally important in the company’s statement (Passport turbofan, HF120 engine, and even H80 turboprop engine for crop dusting application) is the technological advances and research that support this increased demand.
Aviation is a maturing industry. The business is over 100 years old; so it is susceptible to stagnation.
The product development, that is part of the growth forecast by GE, is critical to aviation maintaining a positive climb attitude!Share this article: