Industry Leaders Look to Past Challenges in Approaching Current Uncertainties

March 20, 2025

An impressive roundtable of industry leaders gathered for an NBAA Thought Leadership webinar to discuss the evolution of the modern business aviation industry, and how lessons learned over the past two decades may help when addressing today’s looming challenges.

Moderator Jay Mesinger, CEO and founder of roundtable sponsor Mesinger Jet Sales, asked NBAA President and CEO Ed Bolen about numerous changes underway in Washington, including the recent nomination of Bryan Bedford as the new FAA administrator.

“Times and circumstances change, but the message of business aviation and general aviation stays the same,” Bolen replied. “Regardless of what is swirling around on Capitol Hill or in the executive branch, our message that this is an important industry is something that is consistent.”

Kenneth Ricci, principal with Directional Aviation Capital, noted shifts in the fractional ownership segment post-COVID offer perspective on the current market.

“I go into every year totally paranoid,” he said. “Right now, I’m only thinking about everything that can go wrong in ’25 … I think that there’s going to be some consolidation and then … opportunity.”

Experimental Aircraft Association (EAA) CEO Jack Pelton reflected on the industry’s established leadership position on environmental sustainability and use of sustainable aviation fuel, or SAF.

“[We’ve] been so instrumental in promoting and advocating in support of the environmental issues that we’re faced with,” he said. “That has driven the industry to make sure we are not only perceived as being good citizens of the Earth, but we actually are walking the talk.”

For progress to continue, the industry must be able to collaborate with government officials. Pete Bunce, outgoing president and CEO of the General Aviation Manufacturers Association (GAMA), said the current environment makes that difficult.

“I think it’s far past time that we’d be able to engage with these FAA leaders to talk about the critical policy decisions that need to be made under this administration,” he added. “I’m very concerned about our ability to help [inform] policies to address a lot of the significant issues that are out there right now.”

Tariff Concerns Front-and-Center

Topping the list of current challenges is the Trump administration’s ongoing calls for tariffs, which Ricci noted would carry long-term implications for aircraft and parts costs.

“The problem is we don’t know, right? It’s the uncertainty,” he added. “We’re just all confused about what it means.”

Pelton noted large production backlogs preferred by manufacturers could instead “crush” them if tariffs continued. “We don’t even know what our cost structure is going to be,” he said. “I would really caution the administration to take the time and analyze this very, very carefully, industry by industry.”

“I see nothing good that can come out of these tariffs,” Bunce added. “There may be some ability to flex to those increased costs, but eventually they have to be passed on, and then that just gives advantages to other countries.

“I don’t see that we’re going to see a whole lot of production move into the United States for aerospace because of those tariffs,” he concluded. “I think it’s going to have the opposite effect.”