Challenging yet exciting times ahead
Spotlight on environmental innovation
Consumers and businesses are prioritising green initiatives more than ever before, with private aviation following this trend. Larger charter operators will start to be monitored this year under the carbon offsetting programme that also applies to commercial airlines.
Electric aircraft are the ultimate goal. I think we’ll see more investment in the leading concepts, gaining real traction. The focus (and challenge) now is on regulation and infrastructure. These aircraft can already fly, now they need to prove they can keep paying customers safe.
Industry consolidation ramping up
We’ve seen an increasing trend towards consolidation of businesses within the industry over the past few years, including our own acquisition by Directional Aviation, and we’ll see more mergers and acquisitions within the on-demand charter segment this year. It’s still very fragmented and both the customer and the industry would benefit from this being less so.
Regulation impact – including Brexit
This year our industry needs to grapple with a number of global regulation challenges. In Europe, Brexit will have a major impact – although exactly how is still unclear. Private jet operators need to be able to optimise their flight plans within Europe to make commercial sense. Limitations on inter-European flights will mean more complexity, less choice and – ultimately – customers paying more.
The super-midsize segment will be one to watch this year, as Embraer’s Praetor 600 enters the market alongside Textron’s Citation Longitude – both manufacturers first forays into this key market segment which can perform transatlantic and cross-continental flights.
In the US, the clock is ticking loudly for the incoming ADS-B requirement set by the FAA. Older aircraft require an expensive upgrade to their tracking systems to comply from January 2020 (Europe follows suit in June 2020). This will impact the pre-owned market, and potentially increase charter costs on aircraft over 10 years old.
More extreme weather-related demand
Over the past few years we’ve seen major spikes in on-demand charter activity related to extreme weather events. From forest fires, to flooding, hurricanes and heavy snowfall, private aviation can fly in quickly, when and where required. With these events seemingly getting more frequent, we’re expecting more of this type of demand in 2019.
A tipping point for digital communication
While our industry is highly customer-oriented, a surprising number of companies are still stuck in old communication ways. This year, we’ll see a tipping point when it comes to clients expecting instant, two-way communication – on their own terms. Offering a truly multi-channel service, that includes social media, chat platforms, instant messaging and 24-hour phone support will become a key sales differentiator.”
New jets will stir up the super-midsize market
The super-midsize segment will be one to watch this year, as Embraer’s Praetor 600 enters the market alongside Textron’s Citation Longitude – both manufacturers first forays into this key market segment which can perform transatlantic and cross-continental flights. Both will be vying to dethrone the popular Bombardier Challenger 350, which was the most-delivered aircraft of 2017.
Electric aircraft are the ultimate goal. I think we’ll see more investment in the leading concepts, gaining real traction. The focus (and challenge) now is on regulation and infrastructure. These aircraft can already fly, now they need to prove they can keep paying customers safe.
More ultra long range (nonstop) demand
Following the trend seen in the airline segment, at the top of the market we expect to see more long-range clients looking to fly further and choosing higher-priced non-stop flights over fuel stops – for faster overall journey time and uninterrupted sleep. All eyes are on the Global 7500 as it enters service, out flying the current ‘fastest and furthest’ G650ER.
