By Allison Lampert
(Reuters) -U.S. trade tensions have slowed opportunities for business jet deals in China, the president of corporate planemaker Gulfstream Aerospace said, in a rare case of demand softening in an otherwise upbeat global market for private aircraft.
U.S.-based Gulfstream Aerospace, a division of General Dynamics, is set to grow output of its private jets through 2029, underpinned by strong U.S. demand and new aircraft models coming to market, President Mark Burns said.
The U.S. is
the world's largest market for business jets.
Burns said he sees broader global strength, but U.S. trade tensions with Beijing have "definitely slowed a number of opportunities" in China, where the U.S. planemaker has about 150 aircraft flying.
“It’s a good market for us," Burns said. "But you know, obviously the trade tensions do create some slowdown in that marketplace. So I'm hopeful that there's something that gets done in the near future."
China and the United States have taken steps to ease tensions in recent days following a meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
Business jet makers are seeing swelling order books after demand for private flying grew by high-net-worth individuals during and after the COVID-19 pandemic. In the U.S., affluent consumers remain resilient, even as lower-income customers scale back purchases.
Gulfstream is also seeing higher demand from Fortune 500 corporate customers, following quarters of strong results, Burns said. As of November 7, more than 82% of 446 S&P companies beat third-quarter earnings expectations, compared with a long-term average of 67.2%, according to LSEG data.
Burns said Gulfstream could expect to grow its share of the expanding private aviation market with the certification and entry into service of the company's recently announced super-mid-sized G300 jets, which fly up to 10 passengers and would compete with Bombardier's Challenger 3500 jets. Gulfstream has not disclosed a date for certification and entry into service.
Burns said Gulfstream expected to grow plane production through 2029, following long-term company plans, assuming demand remains robust and its supply chain has capacity.
"Our plans are to continue to grow," he said. "The supply chain right now is supporting that ability to grow."
(Reporting by Allison Lampert in Montreal; Editing by Jamie Freed)
