DE HAVILLAND SEES MARKET GROWTH STARTING IN LATE 1992
DE HAVILLAND SEES MARKET GROWTH STARTING IN LATE 1992 DOWNSVIEW, Ontario, April 6 /PRNewswire/ -- The worldwide economy
will regain its footing in late 1992, marking the beginning of a stable long-term economic environment, according to de Havilland's current market forecast released today.
"We have just come through a period that saw the air transport industry, at times, near paralysis. Many of the world's economies struggled through recessionary conditions and the Gulf War had a far-reaching and lingering impact," says Steven Ridolfi, director of marketing for de Havilland Inc. "But 1992 promises to be a much-improved year. It will see the worldwide economy return to solid, continuing growth. "While world air travel in 1991 was marked by declining traffic, poor yields, monumental losses, airline bankruptcies and the eventual shutdown of several major carriers, air-travel growth is already showing signs of improvement this year. Indications are that the world's major airlines should be returning to profitability and 1993 could be very, very good." He said regional airlines, the mainstay of de Havilland's market have, in fact, generally maintained modest traffic growth and profits throughout the 1990-91 recession and have expanded into markets vacated by the major carriers. "They are entering this recovery phase in fairly healthy condition and are poised to benefit from opportunities arising from liberalization and privatization. Regional airlines are already a key element in the strategy of majors and flag carriers, and will continue to demonstrate strong growth in the long term." The de Havilland forecast calls for worldwide Gross Domestic Product growth averaging 3.3 percent annually over the period 1991 through 2010, with resulting benefits for the regional airline industry. The number of seats offered by regional carriers is expected to grow at an annual average rate of 3.7 percent over the same period, and de Havilland calls for delivery of 7,420 aircraft in the 15-to-90-seat range, with a value of US$75 billion, over the next 20 years. The Toronto-based aircraft manufacturer says the largest growth will be in the larger-aircraft sizes, with a corresponding decline in the smaller aircraft segments. Factors influencing the trend toward larger aircraft for regional operations include continued dramatic growth in regional traffic, increasing replacement of older-generation small jets and congestion at major hub airports. Largest percentage growth, compared to the 1965-1990 period, will be in the 60-to-90-seat range at 28 percent (2,083 units), up from 14 percent historically. The largest number of units, however, will be in the 40-to-59-seat range. Over the forecast period, de Havilland says that size category will account for 2,345 deliveries, or 32 percent of the market (up from 20 percent historically.) The 20-to-39-seat size range will increase to 26 percent (1,923 units) from 21 percent. A significant decline, however, is forecast for the 15-19-seat category, which accounted for 45 percent of the market until 1990. Over the forecast period, that share will plunge to 14 percent, or 1,069 units. Regional airlines will continue to be the largest customers, accounting for 6,714 units or 91 percent of the market. Government, military and corporate customers will order the remaining nine percent. The United States, as it has historically, will provide the largest market, with 43 percent of the deliveries (3,169 units). European customers will account for 20 percent (1,462 units), followed by the Asia/Pacific region with 14 percent (1,062 units), Latin America at nine percent (702 units), Africa at seven percent (498 units), Canada with six percent (453 units) and the Middle East at one percent (74 units). The de Havilland Dash 8 family of regional airliners -- the 37/39-passenger Series 100, the newly-introduced high-performance Series 200 and the 50/56-passenger Series 300 -- is expected to continue its front-running position in the industry, Ridolfi says. "With more than 300 in service worldwide, the Dash 8 has clearly been the first choice for the leading regional carriers around the world," he says. "With our continuous improvement and product development programs at de Havilland, and with the stability afforded by our new ownership, we fully intend to keep the confidence of our customers and their passengers, and be prepared to keep leading the market for the next 20 years." -0- 4/6/92 /CONTACT: Colin S. Fisher of de Havilland, 416-375-3030/ CO: de Havilland ST: Ontario IN: AIR SU: SM -- NY052 -- 5351 04/06/92 12:13 EDT
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|Date:||Apr 6, 1992|
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