The buoyant mood of the business aviation industry is reflected in the 1998 Flight International Corporate Aircraft Census, which once again records a healthy increase in the worldwide turbine fleet. During the past 12 months, the world's aircraft itinerary has risen by around 8%, from 17,333 to 18,688.
"Business aviation is entering a new era, driven by a fundamental need for transportation," says the US National Business Aviation Association (NBAA) president Jack Olcott.
Although sales of both turbofan and turboprop aircraft are increasing, with fleets of 9,535 and 9,153 aircraft, respectively, the gap appears to be widening. Since 1997, the turbofan lead has grown from a mere 35 aircraft to nearly 400. This increase in sales will delight many manufacturers which have concentrated their efforts on designing light business jets, arguing that the new generation turbofans offer efficiency at around the same price as a comparable turboprop.
According to the NBAA, the fleet distribution among jets and turboprops varies greatly depending on geographical area. "Operators in the USA, Europe and Asia have nearly equal proportions of jets and turboprops in their inventories. In contrast, operators in Africa, South America and Oceania [which includes Australia and the Pacific Islands] use twice as many turboprops as jets, while more than 60% of the fleet in Central America consists of jets," it says. North America not only continues to dominate the user market, but the region's overall share has increased from 60% to around 70% during the past 12 months, and now totals 12,836 aircraft.
The USA also records the largest increase in corporate aircraft ownership for a single country, up from 10,960 aircraft in 1997 to 12,836 in 1998. Europe trails behind in second place with 2,006 aircraft. South America ranks third with 1,633 aircraft, while the remaining worldwide fleet is scattered throughout Africa (581), Asia (744), Central America (637) and Oceania (251).
With the exception of Asia and Central America, which show a drop in their overall fleet, the remaining five geographical regions record an increase, albeit small.
MARKET POTENTIAL
The economic crisis in the Far East has undeniably had an impact on the overall size of the business aircraft market in Asia. Industry observers maintain, however, that certain areas within this region are potentially very lucrative.
"In India and China there will be an increasing need for business aviation, as the road system is not well developed and there is an abundance of airports. In India alone their is an emerging middle class equal to 10% of the one billion population. Business aviation will eventually find a niche in this market," says Olcott.
He concedes that the business aircraft industry will slow down eventually, but remains confident that it will not reach the recessionary levels of the early 1990s.
"The industry will suffer cyclical changes but we won't have the precipitous dips that we have had in the past. Business aircraft are regarded now more than ever as a fundamental business tool," he says.
AIRCRAFT INJECTION
Fractional ownership has undoubtedly played a major role in the rise of corporate aircraft usage, particularly in the USA, where more than 230 shared aircraft have entered the market. Europe is now in line to receive a substantial aircraft injection from Executive Jet, for its Netjets Europe programme, and from Bombardier Business JetSolutions, which is planning to announce a start-up programme by the end of the year. "There are a lot of people who have yet to be exposed to business aviation and fractional ownership has only touched the surface," concedes Olcott.
Source: Flight International
