By Rebecca Rayko,
Farnborough, England - The Executive Jet program announced another fleet addition on the heels of yesterday's Dassault Falcon 2000 order.
Executive Jet purchased an additional 20 Hawker 800XPs from Raytheon Aircraft for its NetJets Europe fractional ownership program in an order valued at more than $200 million. Executive Jet purchased 20 Hawker 800XPs plus 16 options last May. The combined order is valued at over $670 million.
Raytheon CEO Art Wegner said Executive Jet is their largest customer by far.
The backbone of the Executive Jet fleet is the mid-sized jet like the Hawker 800XP, said Richard Santulli, Executive Jet chairman. He hopes to put a minimum of 12 planes in Europe now and increase that number as demand merits.
"We haven't even touched the surface of our market" in Europe, Santulli says. Executive Jets will enter the Asia market by next year.
Executive Jet says a share in the fractional ownership program for the Hawker 800XP is around $1.5 million, and the fractional aircraft ownership program is the fastest growting segment of the aviation industry. Under the NetJets concept, an owner purchases a portion of a specific aircraft based on the number of actual flight hours needed and constracts with Executive Jet to manage the aircraft. NetJet owners are guaranteed availability, 24 hours a day, 365 days a year.
Analysts from the Teal Group project that 4,100 business aircraft will be produced over the next 10 years worth $53 billion.
"After spending the late 1980s and early 1990s in the doldrums, the bizjet market is in the midst of a terrific growth spurt," Teal says. Growth from 1996-97 represents the biggest single one-year rise in the history of the market, and fractional ownership is contributing to this upturn.
However, Teal isn't as optimistic for Raytheon's role in this upswing.
"Thanks partly to its status as a well-funded Canadian company, Bombardier will be number one in market share, followed closely by Gulfstream, Cessna and Dassault. Raytheon will be fifth, but will be boosted by new models after 2000," says Teal.
Bombardier says it will have delivered 110 business aircraft by the end of the year. Its Global Express business jet has 80 firm orders. Twelve aircraft are in final assembly and deliveries will occur by the end of the year. The Lear 60 program is gaining momentum with its 100th delivery just completed, says Michael Graff, head of the business jet division at Bombardier.
The Lear 60 will go on a European tour after the Farnborough Air Show. The second of the newer Lear 45 aircraft will delivery this week. Twenty Lear 45s are on order in Europe. Bombardier's Challenger business jet program will complete a record 38 deliveries this year.