Rockwell Collins Predicts Prolonged BizAv Recovery

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Key Takeaways:

  • Rockwell Collins does not expect a significant recovery in the business jet sector until 2016, as the current economic recovery is driven by cost reduction rather than sales growth.
  • CEO Kelly Ortberg believes the business jet market has hit its lowest point and will likely remain at a low level of sustained production.
  • To adapt, Rockwell Collins has scaled its operations and is finding sales in the retrofit market, modernizing existing aircraft with systems like cabin management.
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Rockwell Collins says it doesn’t expect significant recovery in the business jet sector until 2016 and it has scaled its operations to reflect that. Rockwell Collins CEO Kelly Ortberg told Bloomberg that aircraft sales won’t rebound until companies start making more money. The current recovery is driven by cost reduction rather than sales growth, he said. On the other hand, he said, the bizjet market has only one way to go.

I dont think it can go down any further, Ortberg told Bloomberg. Were at a low level of sustained production. I think well stay at that low level. The company makes much of the avionics gear that goes into business jets. It’s gaining some sales in the retrofit market, particularly with its cabin management systems, as companies hang on to their existing aircraft and modernize them.

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