Business jet makers will be bolstered by lower U.S. tax rates, says association

MONTREAL — The United States government’s plan to cut corporate taxes will bolster the business jet industry which last year had its weakest performance since 2004, says an association representing the sector.

“It will be a good shot in the arm for the industry,” said Pete Bunce, chief executive officer of the General Aviation Manufacturers Association.

With 62 per cent of business jet sales coming from North America last year, he said President Donald Trump’s plan to reduce corporate taxes to as low as 15 per cent could spur spending on aircraft.

Bunce declined, however, to say if such moves could offset the possible introduction of a border adjustment tax that would raise the cost of items imported into the States. He said legislative process means that such a proposal could end up being very different from what is being discussed.

Bombardier bucked the industry trend by increasing business jet deliveries last year, according to the group’s annual survey.

The Montreal-based company shipped 163 aircraft, valued at $5.87 billion US compared with 135 aircraft valued at $5.06 billion US in 2015.

Rival Gulfstream fell behind Bombardier as deliveries dropped 25 per cent to 115 aircraft, from 154 a year earlier. The U.S. company’s billings fell 24 per cent to $6.2 billion US.