Avinode Business Intelligence forecasts a positive year for the business aviation markets in Europe and the United States in 2014. It forecasts a 0.7 per cent increase in business jet flights in the US, with positive numbers across most of the regions. In Europe, despite several years of negative growth, Avinode predicts that the market will remain flat in 2014 with a marginal 0.1 per cent growth. The year 2014 is going to be a mixed bag for the two regions that make up the European continent. Northern Europe which tends towards business travel is forecast to experience a 0.9 per cent decline in actual flights during 2014. The more leisure travel oriented southern region, on the other hand, is predicted to see a flight activity increase of 0.7 per cent next year. After several years of decline this should be a welcome break for southern Europe, though it will not bring the region back to the previous high water mark.

Avinode projects that some of the current trends will continue with minor variations, while others will see an about-face next year. In Europe, the light jet category which encompasses the entry level light and super light jet sub-categories, will experience a slight decline of 0.5 per cent, brought on primarily by the market share losses in the light jet sub-category. Entry level jets however, are projected to continue their upswing with a 2.3 per cent increase.

Moving up the weight categories, Avinode states that the European decline in midsize jet category, which includes the midsize and super midsize jet sub-categories, will continue into 2014 with a loss of 3.6 per cent in flight activity. Avinode sees growth across the board on the heavier side of the chart, with the heavy jet category, which accounts for the heavy and ultra long range jet sub-categories, growing by 3.6 per cent in Europe. The ultra long range sub-category is forecast to grow by 3.1 per cent in 2014, while in Europe, where the jet class appears to be largely unaffected by general market trends, ultra long range jets are expected to garner 8.6 per cent more flights in 2014.

Business Aviation in Europe

The reason why almost all the players are present at EBACE 2014 is that business aviation provides its users with a means of transportation that is both efficient and flexible, connecting 1,03,000 cities-pairs in Europe that is more than three times the city-pairs connectivity provided by scheduled carriers. Actually, 96 per cent of these city-pairs are not served in a regular way by scheduled air transport, states the European Business Aviation Association (EBAA).

Despite popular misbeliefs, with only 0.04 per cent of the total CO₂ emission, the ecological footprint of business aviation is the smallest of all transport industry. It actually only emits less than two per cent of the total air transport emissions, whilst it represents more than seven per cent of the total IFR movements in Europe. Besides, business aviation is the only sector that offsets 100 per cent of its emissions.

As a sector, business aviation accounts for over $20 billion to the European economy and employs more than 1,60,000 people across Europe.

Extremely Competitive Sector

With over 800 operators and around 4,000 business aircraft composed of turboprops and jets, the sector is extremely competitive and boasts of a variety of concepts and business models which make it a very flexible, easy to adapt, business tool for executives who need to tour Europe and the world in their quest for.

As a matter of fact and contrary to other regions of the world, around two-thirds of all movements in Europe are charter, commercial, operations, whilst the remaining is split between corporate and private, both non-commercial activities thus underlining the close relationship between Europe Plc and business aviation.

EBACE Guidance

In this background, the European Business Aviation Convention and Exhibition (EBACE) 2014, will be held at Geneva from May 20 to 22. The premier event is an annual meeting place for the European business aviation community. The exhibition brings together business leaders, government officials, manufacturers, corporate aviation department personnel and all manner of people involved in nearly all aspects of business aviation. New business aircraft firms, avionics firms, handling organisations, fractional providers, charter/lease companies and previously titled aircraft resellers display their wares. EBACE is jointly hosted each year by the EBAA, the leading association for business aviation in Europe, and the National Business Aviation Association (NBAA), the leading voice for the business aviation industry in the United States. Although EBACE is the only major European event focused solely on business aviation, attendees come from as far as Africa, Asia, the Middle East and North America.

The impressive exhibition takes place at the magnificent Palexpo, which covers more than 1,00,000 square metres. At Geneva’s Palexpo, EBACE showcases nearly 500 exhibiting companies from around the world and covers more than 36,000 square metres of area. At the nearby Geneva International Airport, over 50 aircraft, including nearly every major business aircraft design in current production, will be on display in a special 18,000-square-metre area. Going by the previous edition which had 12,353 attendees, representing 94 countries, 460 exhibitors – the third-highest number in the event’s 13-year history, EBACE continues to be a must-attend business aviation event.

The event continues to hold promise, irrespective of market movements and a survey indicates why it is popular. According to the EBACE survey, 91 per cent of exhibitors come to see existing customers; 88 per cent to maintain image, presence or awareness; 80 per cent to obtain new sales leads; 38 per cent to introduce new products and 30 per cent to make sales at the show.

Aircraft on Display

Aircraft manufacturers are ever keen on displaying their products at EBACE and the companies are Airbus (ACJ319); Cessna (Citation X, Caravan EX, Citation M2, Citation CJ4, XLS+, Sovereign); Beechcraft (G58 Baron, King Air 250, King Air C90GTx, King Air 350i, King Air 350ER); Boeing Business Jets (BBJ); Bombardier (Learjet 75, Challenger 300, Challenger 605, Global 6000, Global Express); Dassault (Falcon 7X, Falcon 2000 LXS, Falcon 900 LX); Cirrus (SR22T GTS); Eclipse (Eclipse 500); Embraer (Phenom 100, 3000, Lineage 1000, Legacy 650, Legacy 500); Gulfstream (G150, G280, G450, G550, G650); Piaggio (P 180 Avanti); and Pilatus (PC 12 NG) among others.

Interesting Conferences

After four tough years of austerity and rising taxes, the economies of many European nations are on the mend. At an education session on May 20, a panel of international aviation experts will address the question everyone in business aviation would like answered: Will business aviation profit from the developing upturn in the European economy?

The session, to be presented by Pete Bunce, President and CEO of the General Aviation Manufacturers Association (GAMA); David Marsh, Eurocontrol; Charles Schlumberger, World Bank; Alasdair Whyte, Corporate Jet Investor; and a representative from Ascend, will analyse macroeconomic and operational indicators to forecast the impact on business aviation.

Despite growth in other regions of the world since the recession ended, the industry is still trying to determine whether Europe’s share of worldwide general aviation aircraft sales which has plummeted from 25 per cent to 15 per cent, is the “new normal,” according to Jens Hennig, GAMA’s Vice President of Operations.

“It appears that Europe is still continuing to struggle its way through economic uncertainties,” said Hennig, noting that other markets seem to be stabilising.