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THE PRESENT ENVIRONMENT 50 cantly. Driven to a significant degree by the American market, the size of the aircraft needed has also grown. In the United States, only one company (Fairchild) has invested in an aircraft with a seating capacity of over 20 passengers. Fairchild produces a 19-passenger regional aircraft, the Metro, but for a 30-seat aircraft it has joined with Saab of Sweden to produce the SF 340, a twin-engined turboprop. For foreign manufacturers, this market has the further attraction of not having a strong, established U.S. presence. In contrast to the situation for large jet transports, where the growing size of the international market means that the U.S. market is no longer the only basis for launch, the U.S. market is the single most important element of the decision to launch a turboprop aircraft. Sales in the U.S. are probably essential to the successful launch of a new regional aircraft because the United States comprises over half of the market potential. Furthermore, the U.S. market is open to all, whereas foreign markets are often politically controlled and access is generally limited. A U.S. aircraft manufacturer hence is in quadruple jeopardy: it begins with a limited presence in the market; its U.S. market is relatively open to competition; many foreign markets are totally closed; and a large number of foreign manufacturers (often supported by government financing) are concentrating on the field. Business Aircraft Business aircraft comprise a fleet of some 120,000 aircraft, of which 66,000 are used directly for business or executive travel. The remainder are used for a variety of lesser commercial purposes such as air taxi, rental, instruction, etc. In turbine-powered and turboprop equipment Canada, France, Israel, Japan, and the United Kingdom offer a significant challenge to the U.S. industry, and new groups from Indonesia, Italy, Spain, and Sweden are entering the field. At present about 60 percent of the market is in the United States. The U.S. fleet of business turbojet and turboprop aircraft has grown substantially. At the end of 1981 the fleet numbered 3,171 fixed-wing turbojets and 4,660 fixed-wing turboprops and was used principally for executive travel. Turbojets provide speed and moderate range. Turboprops offer, basically, operational efficiency. Foreign manufacturers have made significant inroads in the United States and world markets. However, about two-thirds of the current and planned turboprops are produced in the United States, two foreign-designed aircraft are to be assembled in the United States, and one (Learfan 2100) may be built in Northern Ireland from a U.S. design. Figure 2-7 displays shipments of regional and executive aircraft from 1970 to 1992.
