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Thought Leadership: ISTAT Americas Industry Outlook

Thought Leadership: ISTAT Americas Industry Outlook

In the fifth of our Thought Leadership series Ameya Gore AVP-Asset Management last week attended the ISTAT Americas conference in San Diego and discusses the industry outlook for the next 2-3 years.

Industry Outlook (what ISTAT says):

  • Fuel prices expected to be stable for the next 2-3 years at least
  • Demand for narrow body single aisle aircraft will be continue to be upward.
  • Peak of the financial cycle still another 2-3 years away. Thereafter, depending on the market situation, we may see a downward trend.
  • Interesting to see the Large Regional Jets market in the near future as we see the Bombardier C -Series, Embraer E2 Jets and Mitsubishi Regional Jets (MRJ) programs gain traction.
  • Middle of market segment being watched closely but will remain a grey area with the phase out of B757 and B767 products.

Ameya Gore commented “It will be interesting to see how the next 2 -3 years pan out for the industry. There could be some innovative solutions coming into the market and we might hear some new products being launched. But with the profit margins being stretched to the limit, the financial community may want to play it safe and place their bets on the mature product lines rather than the new products, especially in the existing single aisle and twin aisle markets.”

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