Dassault forecasts growth for Southeast Asia’s business jet market
December 20, 2016
Dassault is projecting short-term to medium-term growth of sales in Southeast Asia’s business jet market despite the market lull in Northeast Asia. Dassault forecasts that more customers in Southeast Asia will place orders for business jet aircraft in 2017 as a result of positive changes in the region, according to Greg Waldron’s news article published at the FlightGlobal website on 16 December 2016.
Dassault experienced a decline in orders from the Southeast Asia region in 2016 due to difficult economic conditions and concerns over political uncertainties. The unprecedented slump in oil prices was particularly responsible for Dassault’s diminishing fortunes in the region. This is because the company’s clients within oil-dependent economies experienced tough market conditions and lacked sufficient financial resources to invest in new jets.
There are indications that these market challenges are gradually thawing away. Oil prices are rising now that the US election has ended. Indeed, like the rest of the world, Southeast Asia suffered the impact of the jittery responses of the global markets to the acrimonious US election campaigns. Waldron quotes Dassault’s Head of Sales for Asia-Pacific, Jean-Michel Jacob, as saying: “Also, the oil price is higher and seems to have stabilised. People are again considering investing in a business jet or replacing their old aircraft. There comes a moment where you have to replace an old jet anyway. Those who have postponed a replacement now feel safer.”
According to Waldron, Jacob remains optimistic that Dassault’s sales in the region will recover significantly in 2017 and going forward. Countries such as Malaysia have become crucial markets for Dassault’s long-range business jets. For instance, the company accounts for 12 business jets in Malaysia out of the 46 that are operating in the country. Dassault is betting on the region’s positive economic prospects to enhance sales performance in the coming years.