FLEET REPORT Busra Ozturk presents our
GROWTH SPURT
annual Fleet Overview Report, analyzing and comparing 2015 figures provided by JetNet
The Business Aviation industry has always been innovative, but now it’s showing resilience as well. Despite a rough economic and political year in 2015, Business Aviation defied the odds.
B
EFFICIENT
Companies rely on Business Aviation to outperform the competition.
ART’s exclusive 2015 Fleet Report shows that the global Business Aviation fleet grew from 34,755 aircraft in 2014 to 35,682 in 2015. That’s a 2.7% growth rate, up from 2.3% the year before. This is a strong indication of growing optimism in the Business Aviation industry, but it remains to be seen how well this will translate into reality in today’s economic climate. This may seem like a bold statement, but we’re not alone. According to a survey by JetNet, 62% of aircraft owners and operators believe the industry has passed the low point in the current business cycle and is on an upward trajectory. The responses were the most positive the company has received since it started the quarterly survey in 2010. Unfortunately, this level of optimism is shared equally across all regions, nor is it universal with all forecasters. Optimism is strongest in North America, where 73% of respondents say the market is on an upswing, while it is weakest in Latin America and the Caribbean, where respondents are split on whether the industry has hit the low point or has farther to fall. In Europe, approximately half of those who responded believe the market is on the rise, while roughly one third say it is still at the low point of the cycle. Turning to the general naysayers, the 24th annual Global Business Aviation Outlook report from Honeywell forecasts up to 9,200 new business jet deliveries worth $270 billion from 2015 to 2025. That’s a three to five-percent reduction over the
30 - BART: MARCH - APRIL 2016
value noted in its 2014 forecast. With Brazil in recession, and the Middle East and Russia suffering from low oil prices, weak currencies, and sanctions, the report says it will take time to secure the uptick in business aircraft sales. Looking ahead through 2016, Honeywell Business and General Aviation President Brian Sill said he expects similar delivery levels as the industry transitions to new models amid a shifting international economic outlook. While last year the forecast projected an increase in business jet deliveries, this year it expects deliveries to decrease slightly, reflecting a weaker demand from emerging markets partially offset by deliveries to fractional operators. But let’s get into the details and you can decide for yourself!
Established Markets When looking at the Fleet Report by continent, much of the good news comes from the United States, where the Business Aviation fleet grew by 3.5% last year, from 19,229 units to 19,894. The US holds about half of the total business aircraft in the world, and has long been the backbone of the Bizav industry. This is partly because many large aircraft manufacturers are US-owned companies, and those that aren’t often still have plants in the United States, as manufacturing in the US reduces their shipping distances and costs significantly. According to a 2015 Gama Aviation study, the United States is home to 50% of the world’s total business aircraft. That’s about 23,582 aircraft. Between 2010 and 2014, 2,774 business aircraft were delivered to the US, which is 47%