This book describes and analyzes factors shaping the competitiveness of the U.S. business jet industry during 2006-11, as well as the industry’s structure worldwide. The United States has been the leading player in the industry since its inception in the 1960s. Three of the six global business jet producers are headquartered in the United States, while the other producers maintain at least one U.S-based production activity. However, competition is strong, frequent cutting-edge updates are necessary, and demand is cyclical. During the recent economic downturn, deliveries dropped 57 percent. This decline largely reflected customers’ lower profits and the scarcity of credit, which especially weighed on potential buyers. U.S. industry officials also indicated that sales and developments of business jets were affected by the availability of financing, continued investment in research and development to maintain innovation capability, and the timely certification of business jets to provide state-of-the-art aircraft to the market.
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