C-Suite in the Sky

A year ago, the big three North American manufacturers, Bombardier, Cessna, Gulfstream and Hawker-Beechcraft, did not have planes to deliver. Customers were given delivery dates in 2011 and even beyond.

Today in the USA, the biggest business aircraft market by far, dozens of companies are giving up their delivery slots for the planes. To cut losses, some are asking manufacturers to find buyers at prices 20 to 25 percent below original rates. A top-of-the-line craft, once available for $50 million to $52million can be picked up for around $40 million now.

Insiders like Ravi Menon of Air Works, India’s oldest and largest general aviation maintenance outfit, are advising customers to buy now. “The market has hit the bottom and is beginning to firm up. We are asking buyers to make their call soon.”

Nigel Harwood, CEO of InterGlobe General Aviation, the business aircraft wing of the group that owns Indigo, and representatives for Hawker-Beechcraft, says they are attempting to woo customers with aggressive pricing, and packages with maintenance contracts, financing options and buyback offers. All to lock-in customers willing to take quick delivery. “If a customer is willing to pay now for an aircraft, we are giving them the option to return the plane after a year. We write off approximately 20 percent of the price.”

Bombardier spokesperson Danielle Boudreau says the company is looking at introducing options like fractional ownership and jet card programmes in India.