More Smaller Aircraft Sales & eVTOL Crash

General Aviation Deliveries PIcking-Up,

More Entrepreneurs Learning to Fly

General aviation is showing remarkable resilience, with increased deliveries and billings across all segments in the first half of 2023, as reported by the General Aviation Manufacturers Association (GAMA). Total industry billings grew from $9.1 billion to $9.2 billion, and rotorcraft sales surged by 29.9 percent from $1.4 to $1.9 billion.

In the world of business jets, global deliveries increased by 2.4 percent year-over-year in the first six months, with 296 aircraft handed over. Notably, Bombardier delivered five more Challengers than the previous year, reaching a total of 51 aircraft. Embraer also saw a boost in deliveries, particularly for the Phenom 300E, with nine more aircraft delivered compared to the same period in 2022.

Gulfstream's deliveries for the first half of the year fell slightly behind the 2022 total by two aircraft, while Textron delivered eight fewer Citations. Dassault, which releases delivery totals biannually, was five units short of last year's pace.

In the light jet category, Cirrus recorded a significant increase by delivering 14 more SF50 Vision Jets in the first half of 2023. In contrast, Pilatus remained relatively stable, with one fewer PC-24 delivered compared to the previous year. Honda Aircraft maintained consistency by delivering 10 HondaJets, matching their first-half 2022 total.

Eclipse Aerospace, resuming production of the Eclipse 550 after a five-year hiatus, delivered two VLJs in the first half of this year.

Within the turboprop segment, overall deliveries rose by 17.4 percent. High-end pressurized turboprop deliveries in the first half of 2023 exceeded 2022 figures by nearly 15 percent. Daher played a significant role in this increase by producing 16 more single-engine TBMs year-over-year. Pilatus improved its first-half 2022 total by delivering five additional PC-12s, while Piper increased M600 deliveries from 14 to 18 in the first half of 2023. Epic Aircraft remained steady, delivering six E1000 GXs in both years.

Multi-engine turboprop deliveries declined, with Textron Aviation delivering 22 King Air 260s and 360s in the first half of this year, down from 30 in the previous year. Piaggio had no deliveries in the same period of 2023 after delivering one Avanti Evo in the first half of last year.

In the bizliner category, Airbus delivered no ACJs in the first half of 2023, compared to four (three ACJ330-200s and an ACJ TwoTwenty) the previous year. Boeing did not hand over any BBJs in the first half of either year.

Piston-powered aircraft production saw an 11.4 percent improvement compared to the same period last year.

On the rotorcraft side, turbine helicopter deliveries in the first half of the year increased by more than 30 percent compared to the first six months of 2022, primarily led by Leonardo Helicopters, which delivered 79 rotorcraft, an 84 percent improvement year-over-year. Airbus Helicopters also recorded a better than 27 percent increase from its 1H2022 numbers. Robinson Helicopter increased R66 deliveries from 47 to 62, nearly a 32 percent rise. Bell's deliveries were only two units short of its 1H2022 total. MD Helicopters, emerging from bankruptcy, resumed production of its MD530F, adding three to the rotorcraft delivery totals for 1H2023. Sikorsky handed over one S-92 in the first half of the year, compared to two in the previous year.

As the aviation industry continues its recovery from the pandemic and associated supply chain challenges, GAMA President and CEO Pete Bunce stressed the importance of stability and direction from regulatory authorities, particularly in the U.S. He highlighted the need for effective leadership at the FAA during a transformative time for aviation and the ongoing process of FAA reauthorization by Congress.

Interestingly, there is a growing trend of entrepreneurs in the U.S. learning to fly and purchasing their aircraft, driven by the reduction of regional airline routes after COVID-19 lockdowns. This trend is expected to boost sales of aircraft such as Pilatus PC-12s, TBMs, Phenom 300s, and single-pilot aircraft as more entrepreneur-pilots enter the market.

Is this Accident Going to Kill the eVTOL Market?

In other news, Vertical Aerospace experienced a crash of its VX4 eVTOL prototype due to a propeller bonding issue during flight testing. However, the company has resolved the issue and is preparing to test a more advanced prototype in early 2024. Despite this setback, Vertical Aerospace remains committed to its eVTOL program, and type certification timelines remain unchanged.

With over 500 eVTOL projects in development, some well-funded, the accident is not expected to have a significant impact on the eVTOL market. To learn more about this growing segment of the private aircraft market, you can read a three-part series in avbuyer magazine.

Additionally, you can watch an interview with David Miller, a private jet owner, discussing how he uses his jet to grow his business in the following link:

Hope you enjoyed this issue of our weekly newsletter. Please share and if you want to get on a one to one call to develop a strategy for you to buy or lease your own plane OR even learn to fly, reach out to me on [email protected].

Regards,

Fabrizio Poli