The market for business jets is gradually moving from the more mature markets in the US and Europe to the developing economies in the Middle East, India, China and CIS countries, as the financial downturn intensifies.

At the recently held Middle East Business Aviation show, aircraft manufacturers like Cessna, Bombardier and Embraer said that they were focusing on developing these markets.

Besides placing representatives in these countries, the aircraft manufacturers have set up MROs (maintenance, repair, overhaul) and service centres for the ever increasing installed based here.

Haley Dunne, spokesperson, Bombardier Business Aircraft said: "Four years ago, 70 per cent of the business came from the US and Europe and 30 per cent from the emerging markets. Now the 70 per cent comes from the Middle East, India China and CIS countries."

"The shift from the more developed markets in the US and Europe to emerging markets has been evident over the past four years," she added.

Similarly, Trevor Esling, Vice-President, International Sales at Cessna, said: "Besides the Middle East, India and China are important markets for Cessna."

According to a study by Frost and Sullivan, titled "World Business Jet Market: Investment Analysis", 2006 was the first time that regions outside North America generated the majority (more than 50 per cent) of business jet orders. This represented a significant shift from the past, wherein the US and Canada generated about three-quarters of business jet sales.

The report said: "Due to cyclical upturns in the aerospace industry, orders for business jets have increased. In particular, China, Russia, India, and other fast-growing economies have placed numerous orders. Overall, strong corporate profits appear set to drive continued demand for business jets."

The Gama (General Aviation Manufacturers' Association) industry outlook for 2007 continued in a similar vein. It said: "The strong world market continues to drive general aviation sales and shipments. While the US economy grew 2.2 per cent in real terms in 2007, the economies of the emerging markets are expanding at rates between three and four times that. This is translating into solid demand for general aviation products in markets outside North America, which accounted for half the business jet shipments in 2007."

For instance, Europe accounted for 24.9 per cent of the business jet shipments, followed by Latin America at 7.5 per cent, the Middle East and Africa with 5.2 per cent and Asia Pacific at 4.2 per cent, it said. In the later half of this year, the financial crisis seems to have brought in fresh challenges for aircraft manufacturers. "It is too early to tell what the impact of the global financial crisis is," said Shane O'Hare, President and CEO of Royal Jet, the Abu Dhabi based luxury executive flight services company.

He said the economic crisis seems to be increasing the demand for business jets. "Even with a three per cent downturn, the GDPs of GCC, India and China are likely to fare better than the more mature markets," O'Hare said.

According to industry experts, some of the problems confronting the growth of business aviation in these markets are the insufficient number of paved airports, trained technicians and inadequate airport infrastructure like air traffic control.

One of the first to address this issue is the Abu Dhabi Airports Company (ADAC), which recently said it would be converting the Al Bateen airport into one dedicated to private jets. According to a recent study released by the ADAC, there are 388 corporate jets based in the Middle East, with the major markets being Saudi Arabia (143 aircraft in 2007) and the UAE (43 aircraft).

By 2014, the region is forecast to have 900 corporate jets, forming a part of the global growth trend that will see 13,200 business aircraft being delivered over the next 10 years.