Latest UBS Index Paints Improving Bizjet Market Picture

Improvements in the small-cabin market drove up the latest UBS Business Jet Market Index, the analyst firm said. The index, based on industry surveys, measures perceptions of market conditions on a scale of 0 to 100 with the higher values reflecting improving conditions.

The new index reached 34, a 10-percent jump from the previous survey and up from the low of 29 in May. The light business jet market showed the greatest improvement, up 34 percent from the previous survey. The large-cabin jet segment also improved, by 3 percent, but with an index of 28 it still trails the midsize jet index of 31. However, that ranking for midsize jets declined by 5 percent.

Fueling the improved index was a strengthening in a number of factors, including consumer interest (up 11 percent), pricing (up 14 percent) and willingness of dealers to increase inventory (up 9 percent). UBS saw customer interest jump 15 percent in North America and 25 percent in Europe, albeit the increase in Europe was over a low level in July.

The index revealed ongoing concerns about the weakness in emergency markets, with large-cabin business jets expected to be the most affected.