Jessica Reed is a writer and editor with AIN. She joined the team in the fall of 2023 after two years covering the aviation industry at Avionics International. She earned her bachelor&#039;s degree in English (Writing &amp; Rhetoric) from Pepperdine University. Her hometown is St. Louis, Missouri, and she since has resided in Santa Barbara, California, and Brooklyn, New York, among others. She is currently based in Philadelphia.

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Jessica Reed

During a panel discussion at the 2025 JetNet Summit in Washington, D.C., this week, industry executives highlighted unprecedented global wealth creation as the primary catalyst driving business aviation demand while acknowledging that supply-chain bottlenecks continue to constrain growth.
Thierry Betbeze, CEO of Dassault Falcon Jet, and Michael Amalfitano, president and CEO of Embraer Executive Jets, outlined how wealth generation rather than traditional market factors is reshaping the industry landscape. In a conversation with moderator Pete Bunce, the executives addressed regional market variations, technological innovations, and persistent supply-chain challenges.
Credit Suisse projects more than 20% wealth growth through 2029. “When you look at it, why is the industry growing?” Amalfitano asked. “It’s because of the wealth that’s being created that enables people to buy an airplane, and they’re now establishing [that] as an identity—‘That’s who I am. I want a jet.’”
Both executives noted that despite geopolitical tensions and regulatory challenges, underlying demand remains robust. “People who want business jets buy business jets. Who cares what the noise is in the marketplace?” Amalfitano stated, underscoring the industry’s resilience against external pressures.
The industry is experiencing approximately 3% growth, though both panelists suggested that this figure reflects supply constraints rather than demand limitations. Current manufacturing capacity and workforce availability are preventing higher growth rates, creating a supply-demand imbalance that supports market stability.
<h3>Regional Market Variations—Opportunities and Challenges</h3>
With business aviation deliveries in North America increasing by more than 8% according to recently released GAMA statistics, this market continues to demonstrate the strongest performance. The region benefits from favorable regulatory environments, established infrastructure, and sustained economic growth.
Embraer reported particularly strong performance in its core market segments, achieving 31% market share across entry-level, light, midsize, and super-midsize categories. The company’s backlog reached $7.6 billion, with robust book-to-bill ratios maintaining momentum.
European markets are confronting regulatory challenges such as proposed kerosene taxes of €0.41 per liter and passenger taxes ranging from €410 to €2,100 ($481 to $2,465). “It’s a handicap for business aviation in Europe,” Betbeze acknowledged, noting the disparity in tax burdens between the U.S. and European nations.
Despite these challenges, Betbeze observed that customer purchasing behavior remains largely unchanged. He noted shifts in political opposition away from emissions concerns to other geopolitical issues, suggesting reduced pressure on business aviation operations.
Latin America continues to exhibit strong growth, particularly in Brazil, where Embraer benefits from regulatory advantages through its relationship with ANAC. The company can achieve faster certification timelines compared to FAA processes, providing competitive advantages in aircraft development.
Asia-Pacific markets present mixed conditions, with China remaining politically challenging while Southeast Asia demonstrates growth potential. Infrastructure development rather than wealth creation represents the primary limiting factor across the region. “You can’t just focus on the population; you have to focus on how you connect through investments, the globalization that allows for airplanes to be purposely built for those missions,” Amalfitano explained.
The executives reframed traditional supply-chain discussions, arguing that capacity and quality issues, rather than parts availability, create current bottlenecks. “We have plenty of parts. But the critical parts that stop the line from moving [are] the challenge,” Amalfitano said.
Key bottlenecks occur in engines, landing gear, specialized components, and materials requiring specific manufacturing expertise. The loss of skilled craftspeople during the pandemic created quality control challenges that require extensive retraining programs.
Both companies have responded by embedding personnel at critical supplier facilities to provide training and quality oversight. Dassault reported deploying hundreds of employees to contractor facilities to address skill gaps and manufacturing processes.
Single-sourcing vulnerabilities have become apparent across multiple component categories, prompting efforts to develop alternative suppliers. However, certification requirements for new sources create significant time delays in addressing capacity constraints.
<h3>OEMs Expand MRO Investments, Service Capabilities</h3>
Original equipment manufacturers are increasing maintenance, repair, and overhaul (MRO) investments as strategic priorities. “Nobody knows our aircraft better than ourselves, Betbeze said. "Nobody knows Falcon better than Dassault, and providing a good service is probably the cornerstone you need to feed your future sales.”
Superior service capabilities directly influence future sales while providing better supply chain control for critical components. Enhanced MRO capacity also addresses customer concerns about aircraft availability and turnaround times.
Workforce development in MRO operations requires adaptation to younger technicians who learn differently than previous generations. Companies are implementing visual and digital training tools to accommodate these preferences, Betbeze said, while maintaining quality standards.
<h3>Technological Innovation through Collaboration</h3>
Both manufacturers leverage their diversified portfolios to accelerate innovation across business aviation platforms. Dassault continues developing single-pilot operations capabilities despite EASA’s recent pause in research, drawing from military and defense technology advances.
The Falcon 10X will incorporate new cockpit designs focused on reducing pilot workload through enhanced automation and navigation systems, including a single-control throttle for both engines and an upset recovery mode. “Knowing that the two pilots will have a lower workload means more safety, more comfort for passengers,” Betbeze said.
Embraer operates seven innovation verticals, including zero emissions, artificial intelligence, autonomous systems, and advanced manufacturing. These initiatives span defense, commercial, and business aviation applications, with urban air mobility serving as a potential testing ground for autonomous technologies.
<h3>Fractional Market and Infrastructure Investments</h3>
The fractional ownership segment has shown particular strength throughout recent market volatility. Embraer reported 77% increases in fractional flight activity since 2020, outpacing industry averages of 57% growth for comparable aircraft.
This segment serves as an entry point for younger, wealthy individuals accessing private aviation before transitioning to whole aircraft ownership. The fractional market’s performance supports optimism about long-term industry demographics and customer development.
Market expansion beyond traditional regions requires coordinated infrastructure development, including airports, hangars, fuel facilities, and regulatory frameworks. Without these foundational elements, aircraft manufacturers cannot effectively serve emerging markets, despite wealth creation and demand indicators.
Both panelists emphasized that infrastructure investment timelines often exceed aircraft development cycles, creating strategic planning challenges for market-entry decisions. Successful expansion typically requires partnerships with local organizations that have market knowledge and operational capabilities. Embraer and Dassault continue to evaluate global opportunities while recognizing that sustainable growth requires comprehensive ecosystem development rather than aircraft delivery alone.

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