Six predictions to transform the market

Despite the fact that it is even more than a quarter until 2020, there are a number of trends that are beginning to emerge on the horizon and are the subject of discussion among the leading players.

The private jet market is in a process of change: the charter model is gaining momentum on demand, medium-sized business jets are losing ground, overall availability is increasing, the new economy is playing an active role in the industry and a commitment to environmental responsibility is required. What are the expected changes in the business aviation market in 2020?

  1. Transition to charters upon request

The market for charter flights on demand, that is, an on-demand payment model that does not require membership or the purchase of watches, is gaining even more momentum in the industry. This approach is so important that major players in the business aviation market are taking active steps in this direction. This is evident from the acquisition of JetSmarter by VistaJet, Wheels Up Travel Management, and Directional Aviation PrivateFly. And these are just some of the consolidations that occurred in 2019.

The transition from the usual “jet card” model or shared ownership is due not only to the advantages of the charter model upon request (increasing the pool of aircraft, competitive prices, complete flexibility, no need to “freeze” funds), but also the general “demystification” of private aviation. Consumers are more aware of the options, as any intelligent user chooses the best method for themselves. Now it’s easy to get the price of a private jet online and live without buying a five-year membership program.

  1. “Departure” of medium-sized business jets

In addition to the Cessna Citation XLS +, it is hard to imagine other manufacturers producing mid-size models. Bombardier discontinued the Learjet 60XR and Textron does not revive the Hawker 800/900 family. The same can be said of the Gulfstream G150. Cause? The performance of farther super-medium jets.

According to David Hitman, president of Monarch Air Group, “the direct hourly operating costs of many super-medium jets, not including the cost of capital, depreciation and other fixed costs such as training and crew, are approaching mid-size aircraft.”

  1. Availability

Over the past decade, this trend has continued to grow. Private flight has attracted a new audience due to its efficiency and flexibility, which allows small and medium-sized companies to understand the value of using this segment to support their business. This market also provides cost-effective aircraft with the ability to land in remote locations, which saves money compared to commercial flights that require one or two connecting flights to reach their destination. The result of this shift is the NBAA’s “No Aircraft – No Benefits” program, demonstrating the benefits of using private aviation to increase revenue.

  1. Growth in the BRICS countries

There is more to private aviation than the US and European markets. Did you know that Brazil has the second largest fleet of business jets in the world? The BRICS abbreviation refers to the countries of Brazil, Russia, India, China and South Africa, large countries with large emerging economies. Private aviation serves as a special link with a somewhat undeveloped ecosystem of commercial aviation with gaps in routes and infrastructure. Both manufacturers, operators, and brokers make important connections in these densely populated economies.

  1. eVTOL

eVTOL or electric vertical take-off and landing aircraft are things of the distant future, right? Probably no. In 2020, they will certainly be on the agenda of private aviation. Big manufacturers like Bell and Embraer want to make this a reality. This concept is best suited for short-distance or urban flights, especially for cities with a high concentration of traffic and skyscrapers. Infrastructure and regulatory issues must go hand in hand with investments in safer and more efficient aircraft. Perhaps in the next decade we will see that this segment of transport will make a vertical leap.

  1. Environmental responsibility

Greening is an added value to any industry. Stakeholders demand this position and reward fidelity. Today, brand value affects consumer behavior, and for aviation it is no different. More efficient airplanes, less noise, and investments in electrical research are the combined efforts of Airbus, Rolls-Royce and Siemens to create hybrid electric motors that shape the future of aviation. Improving aircraft performance will help reduce emissions as leading business aviation players Gulfstream, Bombardier and Cessna strive to team with operators to identify more efficient flight plans that will reduce jet fuel consumption. Environmental responsibility comes in many sizes and designs.

Source – http://www.bizavnews.ru/

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