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#The team's still going through the actual program peds and how that all is going to flow.
But I would hope that we'll see a point or two of higher growth than we had previously anticipated, because that's what we're seeing out of this budget environment.
Again, I think we're pretty well positioned to at least get our fair share.
Long-term, I think it's certainly firms up our ability to get this business back to low to mid single-digit growth.
I would say yes.
What we're going to see is over the course of the year, the amount that goes into the deferral is going to reduce over time.
And actually I think I mentioned it with <UNK>'s question.
You're going to see Company-funded tick up a little bit, Company-funded R&D tick up over the course of the quarter.
You're going to see a little bit of a mix shift over the course of the year.
And we're on plan with respect to deferred.
So I still feel very comfortable with that $100 million net increase.
Well, I don't think I can point to exactly how much that dynamic would change our Intertrade business.
The focus of that business is all around making sure you have the right demand for the right asset and you go buy the right asset that you can turn.
And so it really gets down to a program-by-program aircraft-type-by-aircraft-type specific dynamic that that team works.
In the end, if they slow the retirement rate, that will mean that there's probably fewer spares out there.
But it also means there's probably larger demand for those used spares.
So the trick will be our ability to get to those used parts in the market to continue to grow.
I feel pretty confident that within the business that we're forecasting, we should be able to grow that again double-digit here for the year.
Well, remember, we've guided that biz jet aftermarket would be fairly muted, kind of like what we saw last year.
Obviously, 17% is a gang buster start to ---+ I think we saw 2% last year in growth.
As I mentioned, I don't think we're going to continue at that 17% rate because some of the mandate activities will come down in business aviation.
But I'm hopeful that if we continue to see, like we've seen this quarter with good sales of avionics mods, that we'll be able to create some opportunity to our forecast there.
I think it will be much closer to flat, but maybe down a little bit.
It was from the volume of flights, which drives the demand for the services.
If you think about that, we get paid to provide trips of port for a flight, if they don't take that flight.
By the way, it's by leg.
Even if they take a flight, but it's fewer legs, that means less revenue for us.
The more trips, the more legs to the trip, the higher the revenue.
Yes, generally anybody who is flying a large biz jet like that has contracted with the flight support services organization, or they may do some of it themselves.
But it's things they have to do to support that flight.
Well, that's a very small segment.
I think if you look at biz jet overall flight activity, it was up low single-digit growth.
And if you look at our commercial MRO, it tracks very closely to that overall flight activity.
So yes, I think we're ---+ we watch that very carefully.
We saw low single-digit in our biz jet MRO here this quarter.
And that tracks pretty close to that activity.
If the activity picks up, our revenues will pick up.
If the activity slows down, we'll see headwinds.
In the second half of this year, we'll see the production rate increases at Airbus for the narrow bodies.
And we're seeing A350 consistently ramp up.
We will start to see some revenues very late in the fiscal year on MAX, but it really ticks up in FY17.
Yes, yes.
No, I think that starts to hit us second half.
Second half of the year is where we'll see the benefit from 87, along with the 320s.
You should see much better growth in the second half of the year in air transport OE.
Absolutely.
Well, the market demand for our services, for our products and for the aircraft continues to be very strong.
Where we are seeing weakness is the overall things that are related to the economic slowdown, things like flight activity as an example.
But I'm not seeing any softness in their demand for aircraft, number of flights they are doing in the air transport market.
The aftermarket remains very robust.
They are continuing to fund HUD retro-fits to meet their mandated service.
The overall economy is slowing down, but I think it's still a very robust market for air transport.
I'm sorry, in what segment.
Oh, yes.
For our China business, if I put all-in, yes.
I don't have the number in front of me, <UNK>, but I would say that's a double-digit growth business and continues to grow at that rate.
Thank you, Sean.
We plan to file our 10-Q later today, so please review that document for additional disclosures.
Thank you for joining us and participating on today's conference call.
