Analyst Brian Foley is predicting that a number of unproven, start-up fleet purchasers may end up deferring or canceling orders after launching unproven businesses into a deep worldwide recession, according to AVWeb’s Russ Niles. Foley thinks Embraer is particularly at risk, as well as Bombardier and Cessna, but he also expects more established companies to also defer purchases.
”The possibility of financial turmoil within the ‘Big 6′ business jet manufacturers cannot be
entirely ruled out…The manufacturing slowdown will quickly trickle down the supply chain, which will be one of the last segments to recover. Things will have settled by mid?2010 and the industry will once again be poised for growth, albeit slower than we’ve been accustomed to in the recent past.”
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