Has corporate travel returned post-pandemic and how important is this for business aviation?
Ever Forward, Jetcraft’s 2023 Business Jet Market Forecast, shows some 60% of our purchases last year came from corporations – which had been briefly overtaken by individuals at the height of the pandemic.
There’s a clear consensus among businesses that videoconferencing is no replacement for in-person when it comes to building relationships and closing deals.
We have every reason to expect this will continue to drive the industry during 2024, not least because our forecast found that average flying time has doubled since 2020 – businesses and individuals clearly gain real value from their aircraft and the ability to meet face to face.
The pandemic also prompted many people to fly privately for the first time – do you expect these new entrants will remain active in the industry?
Many new entrants tested the waters with charter and fractional ownership during the pandemic – which has become more accessible as wealth of ultra-high-net-worth individuals (UHNWI) has increased – and some of these will go on to full ownership.
The research very much indicates these first-time buyers will stick around – a study from Private Jet Card Comparisons shows that “some 95% of new entrants are continuing to fly privately.”
The return of corporations, combined with new entrants remaining, is driving demand in business aviation globally. Which aircraft are meeting this demand?
Especially in the US, large, long-range jets have become a focus, driven partly by ultra-high-net-worth individuals (UHNWIs) seeking to meet pent-up demand for intercontinental business trips.
There will also be an increased share of larger jets entering the pre-owned market between now and 2030 as a result of OEMs focusing on mid and large size jets and a significant number of pre-owned light jets being retired over the next five years.
In-demand large jets include Bombardier’s Global 5000 and 6000 and Challenger 604 and 605, the Gulfstream G450 and G550 and the Dassault Falcon 7X.
While these trends suggest a healthy business aviation sector, will growth be constrained by geopolitical turbulence and supply chain challenges?
There will be ebbs and flows based on external factors, but the fundamentals are such that we can be optimistic about the future.
The supply chain has already begun to improve, while many buyers will be unaffected as a result of making effective use of the pre-owned market.
Given we have more active corporate buyers, new corporations and individuals enjoying significant benefits from their aircraft and new entrants continuing to invest in business aviation, we project steady growth over the years ahead.
Jetcraft corporation publishes an annual 5-Year Pre-owned Business Jet Market Forecast: EVER FORWARD: 2023