Foreign demand seen as protecting aviation market

The Financial Times (5/20, Done) reported that, while "traditionally the U.S. has been the heartland of the global business aviation market,... the picture is changing rapidly" as "demand from other markets around the world is growing and already accounts for the majority of new orders for business jets." According to the Times, "The scale of the interest from markets outside North America is helping to assuage concerns that were spreading among the aircraft makers and business jet operators" stemming from "the weakness of the U.S. economy in particular and the turmoil in financial markets." There are some negative indicators: BBA Aviation "gave an early warning of signs that private jet flying in the U.S. could be starting to suffer from the weakening economy and credit market," and Air Partner "has also reported a slowdown in spending by the corporate sector." Even so, "private aviation has enjoyed an unprecedented global boom during the past three years," and many planemakers of all aircraft types report "a strong order backlog."

Regarding airports, Flight Global (5/20, Field) reported that the U.S. "is in an aviation slump, if not outright recession," with airlines "cutting flights across the nation, trimming not just spokes but hubs as well." The air transportation system, it adds, is "generally creaking toward gridlock," with delays and infrastructure problems at major hubs such as New York and Chicago creating "chokepoints."