More than 25,000 people attended the 66th annual National Business Aviation Association convention in Las Vegas this year. The convention is the world’s largest gathering of members of the business aviation industry. The three-day event included over 1,000 exhibitors and more than 80 aircraft were on display. This is always an exciting event for the bizav industry, and this year was no exception as several new products and innovations were introduced.
Let’s look at some of the innovations that were on display at this year’s show:
- Dassault unveiled their highly anticipated Falcon 5x at this year’s show. The company believes this new plane will become the new standard in business aviation. The plane, which includes an industry-first skylight over the entry, can be ordered now for $45 million. This is Dassault’s first new private jet design in over a decade.
- The Falcon wasn’t the only new plane debuted at the 2013 NBAA show. Eclipse Aerospace introduced their Eclipse 550 plane, a private jet for under $3 million — and the only one available at that price in production today. It’s also the most fuel efficient twin-engine jet currently on the market.
- Gulfstream displayed their Elite interior in their G550. The Elite interior includes a high-definition entertainment system, lighting, and temperature all controlled by an iPod touch or app on the user’s mobile phone. Even the seats received an upgrade, with heated seat massage and powered back and leg rests.
While these innovations were exciting, industry leaders also took time to discuss the future of the bizav industry. While all indictors are that sales should be taking off, uncertainty in the world’s current economy is causing business buyers to hold off on jet purchases. However, manufacturers are seeing more purchases from private buyers, and those numbers are only expected to go up.
It wasn’t all business, though. The NBAA also raised $440,000 for the Corporate Angel Network at this year’s event. This non-profit provides free private flights for cancer patients who are seeking treatment in areas around the country. These treatments could improve the patient’s chances of survival, and the organization removes the financial burden from expensive flights. The NBAA raises money for the organization at the show every year.
All in all, this event was a great success. We’re looking forward to seeing the new products and technologies that were on display come to life in the bizav market. If NBAA 2013 was any indication, it looks like 2014 will be an exciting year for the industry!
After a slow start in 2013, the business aviation market’s future is getting brighter. Sources such as J.P. Morgan, Airclaims, and Aviation International News (AIN) have cited good reasons for positivity in the business jet market.
New jet sales
One of the biggest reasons for the hopeful outlook is the increase in new jet sales. Recent reports highlight Flexjet’s $5.2 billion order for 85 new Bombardier business jets, featuring the Challenger 350, Challenger 605, Learjet 75, and Learjet 85. The agreement also includes options for an additional 160 business jets.
And hopefully bizjet sales won’t stop there, as experts are predicting a growing need to replace older business aircraft. According to Airclaims, the demand for next-generation aircraft will be stimulated by the market arrival of new business aircraft, with a total of 20 new models. Offering benefits like longer ranges, less fuel burn, and lower noise levels, these new models will be an appealing option for businesses looking to increase efficiency. According to AIN Online, Airclaims estimates that the rate of new aircraft deliveries will reach 1,000 to 1,100 units annually around 2020.
Market recovery
Another good sign that the market is rising comes from J.P. Morgan. The firm reports that U.S. flight operations climbed 4.7% year-over-year in July 2013, which is the best result since May 2011 and the fourth consecutive month of year-over-year growth. With these numbers, broad-based recovery of the market isn’t difficult to imagine.
These hopeful statistics are welcome news after several slow-to-flat years in the bizjet market. Though the market was steadily climbing until the financial crisis of 2008, the sales of very light jets have been in decline since. At the same time, the delivery of large business aircraft has been more or less flat since 2003. The forecasted upswing is a light at the end of the tunnel for businesses in the private jet arena.
The bizav industry always keeps a close watch on emerging markets, and Turkey is one that has insiders excited. What makes Turkey such an industry hot spot?
- Turkey’s economy has shown continued growth even during the economic turmoil experienced by its neighbors in the European Union (EU).
- Turkey’s strategic location makes it a prime link between businesses in Europe, Asia, and Africa.
The last point is part of the reason why industry insiders are so excited about the country’s opportunities; growth in Turkey’s business aviation market is expected to provide additional opportunities in surrounding regions.
The emerging market in Turkey prompted the European Business Aviation Association (EBAA) to host a conference there in early October. The EBAA is hoping to pave the way for manufacturers and business jet brokers to start doing big business in the eastern European country.
The Republic of Turkey is eager to help foster more growth, but there are obstacles that have to be overcome in order to support a robust business aviation sector. One issue is the fact that Turkey currently doesn’t have open sky agreements with the rest of the EU. However, the country recognizes this and similar shortcomings, and it seems interested in taking steps to remove barriers and encourage bizav development.
In fact, officials have signed an agreement with the EBAA to facilitate long-term solutions for the sale and operation of business jets within the country. And, if recent trends are any indication, sales in the coming years should be good — it was revealed at this week’s NBAA 2013 convention that a Turkish businessperson is the first in line to purchase Dassault Aviation’s new, luxurious, and technologically advanced Falcon 5X.
Turkey joins the list of exciting emerging bizav markets along with Brazil, Russia, India, and China. These markets indicate that the coming years should continue to improve for manufactures and brokers within the business aviation industry.
Scan the latest business aviation headlines and you’ll see why the industry is starting to feel positive. All indications are that bizav is growing around the world, which is exciting news for an industry that was hit hard by the recession. Let’s look at some of the headlines and articles that have industry insiders excited:
Business Aircraft Flying Back in the Black
AINOnline is reporting that business jet flying increased 1.8% last month over a year ago. That’s the third year-over-year increase in 2013. While turbo-prop numbers continue to decline, large-cabin jets led the industry with an 8.5% increase in activity over last year.
Huge Turnaround Brewing in Pre-Owned Business Jet Market
The values of pre-owned jets have been declining since 2008, but prior to the financial crisis, prices had been increasing at an unsustainable rate. This piece points out that airplanes don’t wear out like a car does, and they are portable assets that can be sold on a global market. Currently pre-owned jets are being “grossly undervalued,” making it the perfect time to buy if you’ve been considering the investment.
Giant Order for Bombardier Business Jets
Flexjet, a fractional ownership service provider, just placed a $5.2 billion order with the Canadian Bombardier. Not only does this indicate huge growth for Flexjet, it’s also exciting news for those working in the bizav industry as the company will be hiring pilots and flight crews to service the planes. The company is reporting a 96% year-over-year growth for the first six months of 2013.
JP Morgan Says Business Jet Market Is Improving
JP Morgan’s September 2013 report on the bizav industry suggests “subtle improvements” for the global market. They cite a 4.7% rise in U.S. flight operations in July, “the fourth consecutive month of year-on-year growth.” With U.S. operators flying more, indications are good for continued growth.
We hope to see more positive bizav headlines in the coming months and heading into 2014!
Oct. 14 is on the horizon! It’s Columbus Day, which celebrates Christopher Columbus landing in the Americas in 1492. After negotiating generous compensation with King Ferdinand of Spain for both the financing of the voyage and profit sharing from discovered lands, he sailed three ships into uncharted territories. While controversy surrounds both the man and the holiday, one thing is certain: Columbus was an adventurous businessman.
There is no lack of adventurous businesspeople in our modern world. We are still inspired to go the distance to make the deal. Fortunately, we no longer have to launch ships and spend months getting to our destinations. Private jets are reaching farther distances without refueling. The newest offering from Gulfstream, the G650, has a range of 7,000 nautical miles — that’s New York to Tokyo nonstop, or about twice the distance of Columbus’ initial voyage to the new world.
These large, long-range jets won’t slow you down; in fact, they keep getting faster. It took Columbus five weeks to cross the sea. Now you can make that same trip in less than nine hours, making your global business ventures both practical and appealing. And because there are so many airports to land at in your private jet, you’ll get closer to your final destination than you would if you had to take a commercial flight (or a ship). This saves hours of lost work time.
Today’s long-range jets also have luxurious on-board amenities that allow you to stay connected and keep your business moving, even while you’re in the air. Comfortable work areas and on-board Wi-Fi make your private jet an office in the sky. Many jets even offer real beds and showers to make sure you’re ready for your meeting when you arrive.
These jets are optimal for modern day explorers. You can take your business farther, see more of the world, and enter new markets with a long-range business jet. L&L International can help you find the aircraft that’s right for your business and travel needs, whether you’re interested in taking your business to Dallas or Dubai. Connect with one of our brokers today and they’ll start the search for the perfect jet immediately. You’ll be exploring in no time!
Commercial airlines are trying to trim their costs wherever they can. Unfortunately, that usually means less amenities and more inconvenience for travelers. As the amenities on commercial airlines disappear, the perks of traveling in private aircraft are becoming more luxurious and state-of-the-art. Let’s look at some of the ways private jets are beating out commercial travel these days:
Your time
Commercial airlines
- Travel schedule must revolve around commercial carrier flight times.
- Lengthy layovers can increase travel time, increase chances of lost luggage, and cost valuable business time.
- Security hassles can add hours onto travel.
- Airlines are squeezing in more passengers to increase tickets sales for each flight, meaning the chances of getting bumped are higher.
Private aircraft
- Pick the time when you want to leave or arrive so travel happens on your schedule.
- Since your jet waits when you are running late and you don’t have to navigate security lines, you’ll never miss your flight.
Your luggage
Commercial airlines
- Limited to one carry on, forcing you to check more baggage.
- Checked bags incur huge fees, quickly increasing the cost of your flight.
- Checking bags increases your risk of lost luggage.
Private aircraft
- Far less size and weight restrictions for luggage.
- Don’t have to adhere to liquid limits, saving you a packing headache.
- Travel with large items easily, like sports and music equipment.
- Pets can travel on-board with you.
Your entertainment
Commercial airlines
- In-Flight Entertainment (IFE) is sparse on most flights.
- Some airlines offer in-flight wireless Internet, but you must pay for the service.
- No choice about what movies and television shows you’ll be watching.
Private aircraft
- Offer state-of-the-art entertainment systems with hundreds of movies and shows on-demand.
- View your entertainment on large, flat-screen televisions; some even offer 3-D technology.
- Wireless Internet is standard, making catching up on business a breeze.
Your comfort
Commercial airlines
- Seats have less leg room and force you closer to fellow passengers.
- Close proximity means a loss of privacy, making it hard to finish business in-flight.
- Food choices are limited and not always appealing.
Private aircraft
- Comforts like leather seats, in-flight showers, and full-size beds keep you refreshed and relaxed for the final destination.
- Comfortable and inviting dining areas offer gourmet meals served on real china.
- You have uninterrupted privacy, allowing you to work on sensitive materials without distraction.
While commercial carriers may offer inexpensive flights, the amenities and time-savings you gain from traveling by private jet are priceless. Plus, you’ll bolster your reputation as a successful and efficient businessperson when you arrive to your destinations on time, rested, and relaxed — things that are increasingly hard to attain with frequent commercial travel.
Ready to leave the growing hassles of commercial airline travel behind? Contact L&L International to start the process of finding a private aircraft that’s perfect for your needs.
