The major players who buy airplanes painted a gloomy picture for sales of big jets over the next few years, with global airlines facing a glut in capacity and lower fares. The outlook is worrying for Boeing's 777 in particular.
It’s bad timing for Boeing, which desperately needs to sell more new 777s and is also trying to drum up sales for the upcoming 777X.
Grabowski said the last few years have been perfect for the aviation business, with growing passenger traffic, low fuel prices and cheap capital, but he senses the good times cannot last much longer.
He’s advising investors to wait six months in anticipation of a fall in jet pricing that he foresees bringing major losses for some in the industry.
“We are at the end of something,” Grabowski said.
Adam Pilarski expressed similar worry.
In addition, AerCap CEO Aengus Kelly believes that airlines will continue to defer widebody aircraft deliveries:
“We see big deferrals in the widebody market,” Kelly told an audience at the Airline Economics Growth Frontiers conference in Dublin. “The OEM [original equipment manufacturer] will sell to anyone with a pulse,” he added.
http://www.seattletimes.com/business/bo ... rbus-jets/
http://aviationweek.com/commercial-avia ... -deferrals
We already noticed slower sales but now it appears to become a problem. More second hand aircraft will hit the market soon, making new sales more difficult.