Textron Inc. ( TXT Quick Quote TXT - Free Report) recently announced that its business segment, Textron Aviation launched a pair of its next generation business jets at the National Business Aviation Association - Business Aviation Convention & Exhibition (NBAA-BACE). Textron expects to start delivery of these two aircraft, namely Cessna Citation M2 Gen2 and Cessna Citation XLS Gen2 jets by the end of the first and second quarters of 2022, respectively. Specifics of the New Jet Models
The Citation M2 Gen2 comes with the latest updates to the Citation M2 platform, thereby offering an enhanced cabin experience that includes premium interior styling, ambient accent lighting, re-mastered illuminated cupholders and additional in-flight accessible storage.
On the other hand, the Citation XLS Gen2 offers a new entry curtain that has been added for inclement weather protection on the ground. This next-generation jet also provides improved cabin acoustics in flight as well as new pedestal seat design that enhances passenger comfort with individual controls.
The global aviation industry suffered significantly thanks to the COVID-19 outbreak, which resulted in severe air travel restrictions on domestic as well as international flights across countries last year. This resulted in the grounding of aircraft fleets and a sudden dip in aircraft orders and deliveries in 2020, with the business jet section suffering immensely.
However, with the rapid rollout of vaccines in the past few months, the situation has improved in the aerospace sector and so has the outlook. In fact, with certain relaxations across regions, business jet operators and service providers have been witnessing a sluggish demand for charter services lately.
The business jet market is expected to reach $38 billion by 2030 from $18.8 billion in 2020, at a CAGR of 7.3%, as projected by the Market and Markets research firm.
Such impressive growth projections should bode well for a prominent business jet manufacturer like Textron, which is well known for its Cessna brand of executive jets that includes the Citation aircraft, along with the Beechcraft family of jets that offers business aviation as well as other mission specific aircraft.
Other Stocks to Benefit
Considering the aforementioned growth prospects of the business jet market, other prominent business jet makers like
Embraer ( ERJ Quick Quote ERJ - Free Report) and General Dynamics ( GD Quick Quote GD - Free Report) are also expected to benefit.
Embraer is one of the pioneers in the business aviation industry that builds renowned executive jets like Phenom 100EV, Phenom 300E, Praetor 500 and Praetor 600. General Dynamics’ Gulfstream Aerospace unit offers a comprehensive fleet of executive aircraft, comprising the G280, the G550, the G500, the G600, the G650, the G650ER and the G700.
The growth prospects of the business jet market are also expected to boost revenues of companies like
Honeywell ( HON Quick Quote HON - Free Report) , with the business aviation industry relying on its state-of-the-art technology, products and services for safer and more efficient flight operations. For instance, its Primus Elite Synthetic Vision adds new levels of sophistication and safety enhancements to a jet’s cockpit, while its IntuVue RDR-7000 Weather Radar System gives business aviation pilots clear and timely information.