We continue to hear about how the business aviation industry is turning around or is in a rebound cycle and that all of the nations that participate in the industry on on an upturn. The good news is that this is the beginning of something good for the business aviation industry as a whole. The bad news as indicated is that Europe is not rebounding as quickly as its peers in the world of business aviation. Worst yet, it appears that they are not on the faster track of recovery as others either, according to Brian Foley of Brian Foley Associates. There are many factors according to Foley including, high fuel prices, user fees, carbon taxes, airspace issues, new regulations and airport slot restrictions. Foley stated “When you factor in sustained economic weakness, a near-term robust market outlook just isn’t a reasonable expectation.”
This seems contrary to the numbers that indicate that Europe will account for approximately 20% of worldwide deliveries over the next 10 years. Foley goes on to state that he believes first-time aircraft buyers will be generated in Eastern Europe, while Western Europeans will be purchasing replacement aircraft. Foley stated that many will be buying on a budget instead of springing for more jet than they can afford. We hope that this is not the case but we also know that any recovery at this point is better than the downturn of the past.