Once considered a luxury out of reach for the general population, business aviation and private jet travel are becoming more accessible, affordable, and enjoyable for all travelers — from corporate executives to millennials exploring alternative travel options in charter flights.
Thus far, 2018 has displayed flight growth compared to previous years — despite private jet sales remaining level. Several exciting trends have helped this sector grow both in the United States and beyond.
Flight success in 2018
In September 2018, business aviation flights increased by 2.1 percent year-over-year in the United States, Canada, and the Caribbean — an amount more than double what was predicted for the month. All business aircraft categories except for light jets also saw flight increases; this is the second month in a row that these categories have experienced growth.
Business aviation is also growing steadily overseas with the European market also seeing increases in flight numbers this summer. The number of flights globally continues to increase from previous years, confirming something great for the industry around the world: People are flying more for business.
BizAv trends leading to success
Thanks to industry trends introducing more accessible charter flights for individuals, better safety standards, and improved technology, the industry anticipates future growth as it moves into 2019.
- Charter and per-seat programs — One of the biggest trends in the industry is the increase in programs that offer charter flights, per-seat fares, and shared costs for private aircraft travel. Because of these programs, fewer people are purchasing business jets on their own, but they can fly more easily and more affordably than before. This is leading more individuals and companies to select private jet aviation as their preferred travel option.
- Aircraft management companies flourish — Additional regulations and an increased number of travelers on private jets require higher levels of expertise and responsibility from pilots of small and medium-sized aircraft. This necessity is leading more aircraft owners to turn to aircraft management companies for help in managing their assets and potentially turning them into a revenue stream.
- Technological improvements — Technology continues to exceed expectations in every facet of our lives, including BizAv. New in-flight Wi-Fi systems and cockpit operational improvements make life easier for pilots, aircraft owners, and passengers. Technology is also playing a critical role in the adoption of charter flight booking programs through mobile phone applications.
Many executives in the business aviation sector are working to keep up with these trends and to meet the needs of the new groups of travelers relying on private jets. These executives are hopeful for the continued success of the industry in the new year.
If you’ve been interested in investing in a private jet, now appears to be a great time to do so. Contact an experienced aircraft broker to get started on the search for your new jet.
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
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Need to sell your jet? We can assist with that, too. Contact
the private aviation professionals online, at sales@L-Lint.com
, or at +1 (305) 754-3313
Although some view private jet use as a frivolous perk for wealthy executives in large enterprises, the reality is much different. In today’s fast-paced global business environment, time is money. Commercial travel can be a big time sink, and private jet travel for business purposes saves time by flying executives directly to meeting locations — without them having to deal with baggage, security lines, and boarding wait times. Most business jets also offer internet and communications technologies that allow executives to be productive during flight. With so many benefits, what should existing jet owners and those looking at acquiring their own aircraft be aware of in today’s business aviation environment?
The state of business aviation
Experts agree: The business of BizAv is looking bright. Economic conditions are strong indicators of the strength of business aviation. As the global economy continues its upward trend and stock markets surge, business aviation looks to be continuing its recovery from the 2008 recession. The fact that recent tax changes allow businesses to write off 100% of the cost of business jets will likely mean more sales of new and preowned aircraft in 2018, of which a large inventory still exists for purchase.
Industry insiders also expect charter flight numbers to soar along with membership programs, jet cards, and fractional ownership, which open up the wonders of private flight to those previously excluded. This is good for business aviation in general because it brings new customers into the pipeline who may become future owners. As they say, once you experience the benefits of private aviation, you never want to go back to the hassles of commercial flight.
Business aviation trends
Continuing economic improvements should see new jet sales pick up during the next 12 months. Demand will likely soon lead to preowned inventory depletion through purchase or retirement, and manufacturers are prepared with many new models coming down the pike.
As airlines continue to reduce the number of services they provide as well as increase security regulations and wait times, more passengers will be primed to dump commercial flight stresses. Alternative methods of ownership are also expected to continue rapid growth as aviation companies come up with innovative new ways to make jet travel more attainable to a larger population.
In addition, new technologies and regulations are making jet travel safer than ever before as well as more comfortable. Internet connectivity is no longer a perk but rather a necessity for making the private jet experience more productive for business travelers.
Staying on top of the trends in private and business aviation is important for both existing owners as well as individuals and corporation leaders considering purchasing. It’s important you understand your purchasing options from new to preowned and other access methods, including charters and membership programs. Staying on top of market conditions, operating costs, regulatory compliance issues, and technological advancements can help you choose an appropriate model to meet your needs at an affordable price and ensure private jet travel will remain available to you for many years to come.
Buying a business jet in today’s market while considering all the other factors involved in making a financially sound choice can be daunting. That’s why working with a professional consultant is not simply a convenience. It’s a necessity.
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
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Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
Business aviation had a strong year in 2017 — record-breaking, in fact. According to the Jet Support Services Inc. (JSSI) 2017 Business Aviation Index, the fourth quarter was the busiest in more than a decade. Is this a sign that industry analysts expect the post-2008 business aviation recovery to continue as we move further into 2018?
What do the numbers mean?
The JSSI Business Aviation Index tracks worldwide business aircraft flight activity, including that of jets, helicopters, and turboprops. In the report, JSSI president and CEO Neil Book said flight hours typically drop by 4% in fourth quarters but, in 2017, flight hour use dipped only 0.4%. He added that business flight activity is often a good indicator of the economy’s general status because it is a key tool for carrying out so many core business activities.
Here are some key JSSI findings for various business aviation industry sectors:
- Average flight hours increased 6.1% year-over-year and 4.5% year-to-date.
- Fourth-quarter aircraft utilization hours were the highest on record for any fourth quarter and flight hours were the highest in 10 years.
- Consumer goods, construction, health services, business services, and real estate sectors all saw increases in flight activity, whereas manufacturing, aviation, financial services, as well as power and energy sectors decreased.
- All regions except the Middle East had year-over-year increases in business flight activity.
These trends, although somewhat mixed, show a general increase in business aviation use in most business sectors and regions, which points to an increasingly healthy industry and global economy.
Due to the improving global economy, growth in the stock market, and recent tax legislation, the business aviation market will likely continue its upward trend. And so far, business activity stats for the start of 2018 seem to point in that direction, too.
According to ARGUS TRAQPak business aviation data, business aircraft activity in the U.S. and Canada was up 3.5% in February year-over-year, and analysts expect to see a 4.2% rise in March. Part 91, or noncommercial aircraft activity, rose 0.7% while fractional aircraft activity slipped 0.6% from last year at this time. Large-cabin jets showed the highest activity gain, followed by midsize jets with a 3.6% increase, then light jets up 2.3%.
Although the pilot shortage is still a concern for those in the industry, stabilizing oil prices, favorable tax conditions including the 100% depreciation write-off, and the general health of the economy should help the business aviation market continue its recovery. With the still-low prices on used aircraft, and as costs continue to firm up, more and more business leaders will be able to venture into the market to take advantage of business aviation benefits. And the growing charter markets will allow a younger segment of the population to get away from the hassles and restrictions of commercial flight and into the once out-of-reach experience of private aviation.
So, although struggles will still likely exist, the industry outlook is good and recovery likely to continue. To stay abreast of these changes, savvy business aviation insiders will pay attention to the markets and industry reports, and those thinking of purchasing new or used jets — or selling their own — should seek expert advice.
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.
Things just got a little easier for private and business jet 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.
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, by sales@L-Lint.com, or at +1 (305) 754-3313.
Remember when business aviation was a luxury that only leaders of the largest companies or the wealthiest individuals could afford? Or perhaps that’s what you still think. Many business leaders no longer think the corporate jet is a luxury or status symbol. And, according to a National Business Aviation Administration (NBAA) survey, “Business aviation is the sign of a well-managed company, and a tool that provides unique advantages for American companies.”
Business aviation is up
More and more savvy company leaders are realizing the value proposition business aviation offers. According to Argus TRAQPak data, business aviation activity increased more than 5% in August, making it the largest month of operations since May 2008. Those results included a 10.9% year-over-year increase in Part 135 charter activity and a 7% increase in Part 91K fractional activity. Activity for large-cabin aircraft was up 7.2% while midsize jets were up 4.8%. All this increased aviation activity is considered a good indicator of future jet deliveries.
Justifying the cost
The NBAA report concluded that companies with business aviation departments had a greater level of financial success than those without, and those who cut back on their aviation departments experienced financial downturn. In addition to increased shareholder earnings, the report shows that business aviation increases market share, profit and asset efficiency as well as non-financial benefits such as employee and customer satisfaction.
Saving time is one of business aviation’s biggest benefits. And since time is money, it is one of the biggest cost-saving factors the sector offers. In today’s fast-paced international business arena, staying competitive means being able to get as close to your destinations as quickly as possible with little notice. It might even require traveling to more than one meeting location in a day. With commercial air travel, it might take days to make it to the same destinations with connecting flights, fewer airport locations, ground transportation hassles, and more. Commercial airlines cannot provide the flexibility that business executives require.
Business aviation also lets you make better use of in-flight time. Most jets offer internet and satellite communications capabilities as well as meeting rooms and office space. And you can customize your jet to meet specific needs to maximize productivity — or relaxation. Business aviation also allows you to provide more in-person contact with customers, employees, and partners; perks and convenience for colleagues, employees, and family members; and, yes, it can even increase your company’s status in the eyes of others.
A good time to purchase?
The NBAA survey also points to a growing confidence in business aviation. Many respondents indicated they believe we’ve passed the low point in this cycle and are on an upswing. In addition, according to AINonline, “the percentage of survey respondents who indicated a better than 60 percent probability of purchasing a new jet over the next year is the highest in the past two years.”
As business aviation rebounds from the recession, manufacturers are gearing up to meet new demands and are offering great deals on existing inventory. That, combined with a decrease in young used jet inventories, means that this might be a great time to purchase a new jet. Business aviation just makes good business sense. Company leaders who embrace it will likely find themselves in better positions to take advantage of today’s global marketplace.