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Business Air News Bulletin
Business Air News Bulletin
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AEA figures reveal avionics sales drop
Of the more than $660 million in first-quarter 2020 sales, 52.3 per cent came from the retrofit market while forward-fit sales amounted to 47.7 per cent of first-quarter sales. The overall fall in sales was 8.8 per cent.

The Aircraft Electronics Association has released its first-quarter 2020 Avionics Market Report. In the first three months of the year, total worldwide business and general aviation avionics sales amounted to more than $660 million as reported by the participating companies.

The figure represented an 8.8 per cent decrease in total sales compared to the first-quarter 2019 amount of more than $724 million. It also ended a streak of 12 consecutive quarters with a reported increase in year-over-year sales. However, this year's first-quarter sales showed a 3.2 per cent increase compared to the same period two years ago in 2018, when sales were more than $639 million.

The dollar amount reported (using net sales price, not manufacturer's suggested retail price) includes all business and general aviation aircraft electronic sales including all component and accessories in cockpit/cabin/software upgrades/portables/certified and non-certified aircraft electronics; all hardware from tip to tail; batteries; and chargeable product upgrades from the participating manufacturers. The amount does not include repairs and overhauls, extended warranty or subscription services.

Of the more than $660 million in first-quarter 2020 sales, 52.3 per cent came from the retrofit market (avionics equipment installed after original production), while forward-fit sales (avionics equipment installed by airframe manufacturers during original production) amounted to 47.7 per cent of first-quarter sales.

According to the companies that separated their total sales figures between North America (U.S. and Canada) and other international markets, 75.2 per cent of the first-quarter sales volume occurred in North America, while 24.8 per cent took place in other international markets.

“With the passing of the January 1 2020 deadline to equip aircraft with ADS-B Out avionics in the United States, the end to 12 consecutive quarters of sales growth may not come as a surprise,” says AEA president and CEO Mike Adamson. “We also don't yet know the full extent and global impact of the economic damage caused by the COVID-19 pandemic near the end of the first quarter and how it will weigh on the industry and our market figures going forward. The continued operations of business and general aviation could provide a silver lining while commercial aviation remains at a near standstill worldwide.”

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