CORPORATE JET INSIDER
The State of Global Private and Business Aviation
What is the state of private and business aviation worldwide? The globalization of business has placed tremendous importance on corporate aviation. Company leaders need to get to wherever business takes them, and commercial airlines are not the only answer. But business aviation today also has its challenges along with this growth. Therefore, the state of business aviation depends a lot on location.
Business aviation in the United Kingdom is in a somewhat uncertain state as the U.K. continues preparing for its break from the European Union. Brexit will likely have a significant impact on regulations governing business aviation, and if government officials don’t address the aviation industry in their Brexit talks, the U.K. could suffer a hit to global imports and exports. According to an article in The Telegraph, the Independent Transport Commission issued a report that states, “In order to preserve the UK’s air connectivity, the UK will need to ensure that there is a timely renegotiation of a significant number of aviation treaties, including with third countries such as the US, as well as with the EU.” The United Kingdom’s large aviation manufacturing industry is another area of concern because it depends so heavily on a global supply chain that relies on aviation agreements.
Africa’s importance in the global business aviation sector was underscored by the African Business Aviation Association’s (AfBAA) acceptance into the International Business Aviation Council (IBAC), the business aviation industry’s global association. AfBAA CEO Rady Fahmy is excited about the prospect of working with fellow members on improving aviation standards in Africa and on a global scale. Along with that development, more good news was reported by Global Jet Capital (GJC) researchers as they expect the country’s private and business jet fleet to grow by 25% within the next eight years, according to an ÂIN Online article. One of the biggest challenges will be operators’ abilities to finance these aircrafts.
Business aviation is booming in the Middle East, especially in Saudi Arabia and the United Arab Emirates (UAE). Business aviation has long had a strong presence in the region, but it traditionally was driven by those in the oil and gas industry. These days, business aviation is making inroads in corporate sectors such as finance and health care. Ghada Fawzi, director of sales for Falcon Aviation, said there is high demand for midsize jets that can seat eight to 19 passengers. She said overall business jet sales are projected to increase 15% to 17% in 2018. This is likely due to the number of new jets available pushing prices down, but the variety of models to choose from is making this a very good time to purchase as lower prices are beginning to increase demand.
Indiajet operators flying out of India. Those leaving the country previously required prior permission from the Directorate General of Civil Aviation (DGCA), but new relaxed regulations no longer require such clearance. Indian operators who are certified by the DGCA and approved for an international “area of operations” will be able to fly unscheduled international flights without prior permission for the length of their five-year certifications. This should help reduce flight delays, which is essential in today’s fast-paced business world.
Jet travel is becoming a necessity in the global marketplace, and governments are recognizing the necessity of facilitating international business aviation. As decision-makers in countries around the world recognize its importance to the global economy, business aviation is likely to continue overcoming such challenges and mature.