Demand for market services from the world’s largest business jet makers rose significantly between April and June, according to comments from executives made on recent earnings calls.
The increase in demand for services is mainly due to the increase in the number of flight hours by private jet operators. According to the latest report on global business jet flights published by WingX, business jet flights in the first six months of 2022 increased by 22% compared to the same period a year ago. This is also a 21% increase over the number of business jet flights during the same period of the 2019 pandemic.
Bombardier released its second-quarter earnings report this week, which included revenue of $1.6 billion for the quarter, reflecting 28 deliveries and “a 22% YoY aftermarket revenue increase to $359 million.”
“Our goal of achieving $2 billion in annual aftermarket revenue by 2025 is absolutely on track,” Bombardier CEO Eric Martel told investors on Thursday.
The Canadian business jet maker opened an expanded version of its service center in Singapore in June to meet growing demand for aftermarket services in the Asia-Pacific region. Bombardier is also expanding its facilities in Miami and London and will open a new facility in Melbourne, Australia later this year.
One of the ways Bombardier has also captured demand for aftermarket services from independent maintenance and repair providers is by incorporating SmartLink Plus into new production aircraft models to provide operators with a common digital infrastructure that captures and analyzes aircraft health, maintenance. and performance data in real time.
Martel highlighted this feature of the new Bombardier aircraft at the 2022 European Business Aviation Conference and Exhibition (EBACE) at the presentation of their new Global 8000 aircraft, calling it “a digital evolution of services that allow our operators to stay connected to the aircraft at all times. “.
Bombardier’s CEO wants to continue to expand the number of authorized aftermarket service facilities the company operates in key regions to “bring more of our planes home.”
Gulfstream has also been involved in a significant expansion of its aftermarket services facilities, including the addition of new avionics and cabin communications experts to the 24-hour support service operating at its Farnborough service centre. The General Dynamics subsidiary opened a new maintenance facility at Phoenix-Mesa Gateway Airport in March.
The company also announced a $55 million investment to add 200 new engineers, mechanics and avionics technicians at its Appleton, Wisconsin, facility, according to a June 2 press release. New cabinet makers and finishers, upholsterers, aircraft paint technicians and manufacturing engineers are among the additions to the growing workforce at Gulfstream St. Louis.
On July 27, General Dynamics released its second quarter results, which saw Gulfstream generate $1.9 billion in revenue. “Revenue was $245 million higher than the prior quarter, or 15.1 percent, primarily due to higher service center sales and services at Gulfstream, particularly FBOs, at Jet Aviation,” General Dynamics CFO said. Jason Aiken to investors during their earnings call. last week.
Embraer also reported its second-quarter earnings on Thursday, where executives at the Brazilian business jet maker said they were experiencing a similar increase in demand for services due to an increase in their fleet of business jets and regional jets. The company has also invested in a significant expansion of several of its service centers, including doubling the usable space at its Sorocaba service center in São Paulo from “20,000 m² to 40,000 m²” in June.
“Revenue for the quarter came in at $1.90 billion, down 10% from 2Q11 due to lower deliveries in the commercial and defense segments, partially offset by our service and support business unit,” it said. Embraer CFO Antonio Garcia during Embraer’s earnings call. call on Thursday.