FLIGHT ACTIVITY

operational costs and hourly rates into account over time. This is being done to indicate how profitability of business aviation has a positive impact on the economy.

“The Annual Review of Business Aviation in Europe provides valuable information to better understand the industry,” said EBAA CEO Fabio Gamba. “However, the indicators available don’t account for the fact that business aviation is defined by the gains made by business people in terms of tailored approaches, flexibility, time-saving and access. When indicators exist that can measure these benefits, we will have a more rounded and truer view of the state of the industry.” The EBAA report has pointed out that there would be conservative growth, pointing out that there was 0.7 per cent flight activity growth rate and that business aviation fared better than other segments of air transportation sector. Gamba attributed this to external influences, including economic and political pressures.

Gamba mentioned that the European fleet of business aircraft remains one of the world’s youngest, with 50 per cent of all aircraft being less than 10 years old. “In terms of aircraft type, the trend from 2005 to 2014 has been high growth in ultra-long range and very light jets, with a decline in entry level and midsize jets and, significantly, a decline in turboprops, which has traditionally been the segment’s workhorse. This suggests that we may be shifting towards long-haul, heavy aircraft operations becoming the industry’s bread and butter.”

Within the current setting, Honeywell notes that the “buoyancy of operator attitudes is surprising.” This is particularly true as Russia, which supported the region before 2013 with strong local purchasing ambitions, has slipped in reported purchase plans due primarily to Western sanctions. According to the report, the comparison of the planned timing for European purchases indicates uneven proportions of demand in the next three years of the five-year window, with about 20 per cent allocated through 2015 followed by a 13 per cent dip in 2016 and a strong rebound to over 30 per cent in 2017.

The Bombardier forecast notes that economic growth in Northern Europe remains stronger than that of Southern Europe. “The economies of Germany and the United Kingdom, two of Europe’s largest, are expected to experience greater GDP growth,” says the report. “France, Italy and Spain, however, will see below average growth.”

Bombardier notes that Europe received 14 per cent of the world’s business jet deliveries in 2013, at approximately 77 units, up when compared to 65 deliveries in 2012 but consistent with deliveries received in 2010 and 2011. Within the region, the two largest countries in terms of installed base, Germany and the United Kingdom, received almost 50 per cent of the region’s deliveries, a significant increase from 2012. The fleets of these two countries, along with those of Austria, France and Spain, make up 47 per cent of the entire European business jet fleet.

Bombardier said that Europe is expected to remain one of the main markets for new business jet deliveries between 2014 and 2033, at 3,575 unit deliveries, seeing significant fleet growth equivalent to a CAGR of six per cent over the forecast period.