General Aviation Predictions and Trends for 2006

General Aviation has seen some rocky years since 9-11, as it spun into a financial disaster for many Fixed Based Operators. Much of this was media induced, as general aviation had little to do with the International Terrorists attacks on that fateful day. Most of the collapse came from government over regulation and mass media hysteria calling for more laws in the general aviation sector. But even so General Aviation was not breaking any speed records prior to that due to high fuel costs, nothing like today, but high never the less and liability insurance costs due to outrageous litigation costs and kangaroo court awards. Typically a small aircraft has over $75,000 built into the cost merely so the manufacture can maintain a defense fund to fight finished products liability costs when a small aircraft crashes and generally it is due to pilot error and not the aircraft itself.

As 2006 gets underway the General Aviation Aircraft Maker Market is looking good with new light small jets being made for a fraction of what a jet aircraft would normally cost and thus tapping into another market for small and medium sized businesses to have a corporate aircraft. Additionally after 9-11 the FAA reduced barriers to entry for Fractional Jet Ownership, thus boosting that sector of General Aviation. Currently most of Wichita, KS is back to work and smaller start-up companies are opening up in other areas as these new small business jets get FAA Certification, many of whom have 100s of advanced orders. One issue is that India and China