Business jet OEMs report increasing demand for aftermarket services in the second quarter

Business jet OEMs report increasing demand for aftermarket services in the second quarter

Reports on second-quarter results from Gulfstream, Embraer and Bombardier – whose new service center in Melbourne, Australia, is pictured here – reported increasing demand for aftermarket services. (Photo courtesy of Bombardier)

Demand for aftermarket services from the world’s largest business jet manufacturers rose sharply between April and June, executives commented on recent conference calls.

The increase in demand for services is mainly driven by the increase in the number of flight hours flown by private jet operators. According to the latest report released by WingX on global business jet operations, business jet flying increased by 22% in the first six months of 2022 compared to the same period last year. That’s also a 21% increase from the number of business jet flights that took place in the same period prior to the 2019 pandemic.

Bombardier released its second-quarter earnings report this week, which included revenue of $1.6 billion for the quarter, reflecting 28 deliveries and “a 22% year-over-year increase in aftermarket revenue to $359 million.” dollars” reflects.

“Our goal of achieving $2 billion in annual aftermarket sales by 2025 is right on track,” Bombardier CEO Éric Martel told investors on a conference call on Thursday.

The Canadian business jet manufacturer opened an expanded version of its service center in Singapore in June to meet the growing demand for aftermarket services in the Asia Pacific region. Bombardier is also expanding its facilities in Miami and London and will open a new facility in Melbourne, Australia later this year.

One of the ways Bombardier has also increased demand for aftermarket services from independent maintenance and repair providers is by including SmartLink Plus on new production aircraft models to provide operators with a common digital infrastructure that monitors condition, maintenance , and real-time performance data.

Martel highlighted this feature of the new Bombardier jets during the launch of their new Global 8000 jet at the European Business Aviation Conference and Exhibition (EBACE) 2022, calling it the “digital evolution of services, enabling our operators to be connected at all times with the.” plane to stay connected.”

The Bombardier CEO wants to continue expanding the number of authorized aftermarket service facilities the company operates in key regions to “bring more of our jets home.”

Gulfstream St. Louis, pictured here, is expanding its workforce to improve service and production support. (Photo courtesy of Gulfstream)

Gulfstream has also been involved in the significant expansion of its aftermarket service facilities, including the addition of new avionics and cabin communications experts to a 24 hour support service operated at its Farnborough Service Center. The General Dynamics subsidiary opened a new service facility at Phoenix-Mesa Gateway Airport in March.

The company also announced a $55 million investment to hire 200 new engineers, mechanics and avionics technicians at its Appleton, Wisconsin facility, according to a June 2 press release. New joiners and finishers, upholsterers, aircraft painters and manufacturing engineers are among those being added to Gulfstream St. Louis’ growing workforce.

On July 27, General Dynamics released its second-quarter results, with Gulfstream generating $1.9 billion in revenue. “Revenue was $245 million higher than the year-ago quarter, or 15.1%, primarily due to higher service center sales at Gulfstream and higher service volume, particularly FBOs at Jet Aviation,” said Jason Aiken, CFO of General Dynamics to investors during their conference call last week.

Embraer also reported its second-quarter results on Thursday, in which the Brazilian business-jet maker’s executives noted that they are seeing a similar increase in demand for services attributed to increased utilization of their business-jet and regional aircraft fleets . The company has also invested in significant expansions for several of its service centers, including doubling the floor space from “20,000 sqm to 40,000 sqm” at the Sorocaba Service Center in Sao Paulo in June.

“Revenue for the quarter was $1.90 billion, a decrease of 10% compared to second quarter 21, driven by lower shipments in the commercial and defense segments, driven in part by our service and support business unit,” said Antonio Garcia, Embraer’s CFO, during Embraer’s earnings call on Thursday.

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