By Rebecca Rayko
AWN Editor

NEW ORLEANS - It could hardly be a better time to be in the business aviation industry. The 53rd annual gathering of the National Business Aviation Association held in New Orleans October 10-12 reflected the exceptionally good economic climate this industry segment is currently experiencing.

Three new business aircraft models were launched on opening day alone, and more than $2 billion in new aircraft orders were announced during the convention.

"Today, more companies are operating more aircraft as an aid to business than ever before, and our membership, at more than 6,200 companies, has never been larger or more active," said NBAA president Jack Olcott. "We are seeing substantial growth in traditional corporate flight departments, fractional ownership programs and charter activity."

The NBAA Convention floor space increased more than 12% over last year's record-breaking show, and attendees numbered over 28,400. In addition, there were 150 aircraft on static display at nearby Lakefront Airport.

Fueling the prosperity of business aviation is a combination of several factors: the record-breaking economy, the inability of traditional air service to meet current travel demands and unprecedented levels of personal wealth.

This environment has changed perceptions of the industry as well. Business aircraft aren't so much viewed as luxury items anymore, but productive tools that help companies grow faster and become more profitable.

Nor are business aircraft limited to the upper echelon of companies, although 90 of the Fortune 100 companies do operate or own business aircraft. Today business aircraft users range from individuals who often fly rented, single-engine, piston-powered airplanes to the largest multinational corporations operating a fleet of multi-engine jets. There are currently close to 9,000 business aircraft operators in the US alone, and this number is expected to increase going forward.

As good as it gets?

Olcott expressed confidence in continued prosperity for the industry. Demand for corporate productivity is a mainstay and with it are the tangible benefits business aviation provides.

Forecasters at Honeywell Aerospace agree with Olcott's assessment. In its 9th annual business aviation market outlook, Honeywell predicts continuing strong demand for new business aircraft. For the period from 2001-11, Honeywell forecasts a $90 billion market for new business jet aircraft with deliveries of nearly 6,800 units.

Besides the economy, Honeywell credits the vigorous development and introduction of several new jet models across business aviation as a key factor to continued strength of this market.

North America remains the strongest and largest business jet market, with operators saying they will replace or expand about 14% of their existing jet fleet with new aircraft during the next five years. Nearly 71% of all new jets will be sold in North America during this period. Aircraft age and larger cabin passenger space were the most frequently mentioned reasons by North American operators for acquiring new jets. Other key factors were improved range, speed and performance.

However, Honeywell does project a potential cooling of near-term order levels (although you wouldn't know it from the atmosphere at NBAA 2000) offset over the next few years by already high backlogs. A slowing economy in North America and gyrating stock prices have begun to affect purchasing decisions there, and regulatory uncertainty and increasing taxes are affecting Europe and Latin America, respectively.

Attitudes at NBAA 2000 were certainly more bullish than the Honeywell survey results. Raytheon topped the manufacturers on the orders scale after logging 105 orders for its newly launched Hawker 450 light midsized jet among others. Cessna received its largest ever one-day sale to Latin America operators (see related story), and Gulfstream received a 20 aircraft order for its newly launched GV-SP (see related story).

Fractional ownership continues to be a rapidly growing trend. Many observers feel that only a small percentage of this market has been developed. NBAA 2000 saw a major order for Gulfstream by Executive Jet. Raytheon's TravelAir placed big orders for the new Hawker 450 and for the Premier I. Executive Jet owner Warren Buffet was also seen making the rounds on the convention floor throughout the show.

Boeing and Airbus carried their traditional rivalry over to the business aviation stage. Boeing Business Jets had a large presence at NBAA 2000, the venue from which it provides its annual orders update (see related story). Airbus, who trails its rival drastically on the orders front, revealed its first airline customer order and some partnership news (see related story).

Dassault's business aviation division Falcon Jet added a new model - the Falcon 2000EX. The new addition adds 25% more range over its predecessor, the Falcon 2000 (one of Falcon Jet's all-time best sellers).

Bombardier marked the delivery of its 200th Learjet 31A at the show, and the 100th Learjet 45 was on display at Lakefront Airport. The Challenger 604 program also marked a milestone at NBAA 2000 with the delivery of the 500th aircraft to the chairman and CEO of E*trade.

Two regional aircraft manufacturers new to the business aviation market, Fairchild Dornier and Embraer, were relatively quiet at NBAA 2000. Fairchild announced a partnership with Lufthansa Technik for its Envoy 7 program, but no updates were provided for Embraer's Legacy program, which received a substantial launch order at Farnborough 2000.

Also quiet were newcomers AASI and VisionAire. A flight test version of AASI's Jetcruzer 500 was at the static display, and the company is still aiming for a June certification date for the aircraft. Cash-strapped VisionAire unveiled a new flight deck arrangement for its VA-10A Vantage but still needs a major infusion of capital to bring the aircraft to flight test.

Socata announced a 31 aircraft order from New Avex, its US distributor. The $33 million order includes 10 TBM700s, 10 TB 20 Trinidad GTs, 10 TB 21 Trinidad GT Turbos, and one TB 10 Tobago GT. Sino Swearingen also received an order for the new SJ30-2 from German charter operator FAI Airservice.

Next year's NBAA meeting will also be held in New Orleans on September 18-20, 2001. NBAA gatherings have become so large it is limited to conference halls in excess of 800,000 sq ft.