Even though aircraft sales are slumping at aircraft manufacturers like Cessna Aircraft and Hawker Beechcraft, there is now significant growth in the aftermarket segment of the business aviation industry.
“They’re the first to see a change, particularly because business jet operations – takeoffs and landings – start to decrease as the economy slows down,” said aircraft industry analyst Brian Foley with Brian Foley Associates. “The aftermarket is very dependent on business jet operations.”
The aftermarket business aviation industry generates billions of dollars every year as was worth $6 billion in 2009 – the latest figures available – according to Kevin Michaels, vice president of ICF SH&E, an aviation and aerospace management consultant.
More than 30,000 turbine-powered airplanes in the active aviation fleet and must be maintained, repaired, overhauled or upgraded, he said. That doesn’t include piston-powered aircraft.
Hawker Beechcraft is one example, as its global support business generates 20 percent to 25 percent of the company’s annual revenue, according to company officials. Also, Aero Mach Labs has about 70 percent of its business from repairing and overhauling aircraft instruments in active airplanes. “It’s a huge part of what we do,” Chuck Perkins, the company’s president, said in the Wichita Eagle
Over the past two years, Hawker Beechcraft has added service centers, employees and new products to support its fleet of 30,000 active turbine and piston-powered airplanes. Sales of Hawker Beechcraft’s global support segment grew from $483.3 million in 2009 to $508 million last year. In the past five years, its support network has shown compounded annual growth in profits of nearly 17 percent.
“Where we’re recognizing growth is on product development,” said Christi Tannahill, the company’s vice president of global customer support. That includes upgrades for its Hawker 800XP, 400XPR and King Air 200 planes with retrofits to upgrade technology, performance, fuel performance and operating costs.
Last month, the company announced it will increase production of 400XPR upgrades after its planned production sold out. The company is also working on upgrade programs for its Premier and King Air 350.
