Market Insights.qxp_MARKET INSIGHTS 17/05/2022 10:22 Page 1
MARKET INSIGHTS
Bizjet Development Prospects: Large Cabin Jets
With several new jet announcements in the past 24 months, René Armas Maes shines a spotlight on the 4,200nm to 4,750nm-range jet sector (Large Cabin Jets), with a view on how Gulfstream’s new G400 could impact OEM activity…
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o remain competitive and meet their customers’ needs, the leading business jet Original Equipment Manufacturers (OEMs) need to anticipate changes in customer demand. To stay ahead of the game, they must continuously develop and design new products, improve existing products and services, and develop new technologies to capitalize on market opportunities. However, introducing new products and technologies requires a significant commitment to Research and Development (R&D) investment. Operating in a highly competitive environment, OEMs are exposed to the constant risk that more innovative products, services, or technologies could be
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developed by competitors. Even after a new jet is introduced to the market, there’s no guarantee it’ll be successful – especially at times customer demands and preferences are changing, or if a new product hits significant turbulence en route to certification. Timing is also crucial – for example, reaching the market before a competitor’s jet does, or in relation to an older model becoming obsolete. In short, the long-term growth, competitiveness, and continued profitability of business jet OEMs are dependent on their ability to anticipate and adapt to changes in the markets, and reduce the costs of producing high-quality products – while continuing to develop products and portfolios that align to worldwide market opportunities.
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