Dubai: Boeing said on Tuesday that the sale of its business jets has slumped by fifty per cent globally when compared to last year due to a combination of various factors including low oil prices.
The US based aircraft manufacturing company which sells about six business jets every year sold only three this year, David Longridge, president of Boeing Business Jets told reporters at a press conference in Dubai.
“This year has been tougher when compared to previous years due to a combination of factors including Brexit, US elections and low oil prices but things are picking up now and we are working on two or three deals currently,” said Longridge.
Oil prices have halved since 2014 impacting the economies of oil producing countries globally. From more than $110 per barrel two years ago, oil prices dropped to less than $50 per barrel in recent times.
Both Brexit and the US elections led to uncertainly in the market with decision makers adopting a wait and watch attitude as there was no clarity on which direction the economies are going to move.
Giving an outlook on the Middle East growth plans, Longridge expressed optimism that business is going to increase in the coming years.
“I am positive about sales. I am going to sell one Max 7 business jet into the Middle East this year. We are seeing more proposal activity requests in the past six months than we’ve seen in months before.”
Middle East is one of the important markets for business jets as many businessmen and executives own business jets to travel around the globe.
The company has not sold any aircraft in the region this year, he added.
Longridge also said the Donald Trump’s win in the US election will be positive for the growth of the business in the US.
Meanwhile, Boeing announced the sale of the first BBJ Max 7 at the Middle East Business Aviation Association event to a customer based in the Asia Pacific region. The BBJ Max 7 is longer than the original Boeing Business Jet with more space in the cabin and less operational costs.
The company said it has twelve BBJ Maxs on order with one BBJ Max 7, ten BBJ Max 8s and one BBJ Max 9.
Boeing also said on Tuesday that it will work with GKN Aerospace’s Fokker business to develop, produce, offer and support the Skyview Panoramic Window, the largest window available on any passenger jet offered today.
