CIS BUSINESS AVIATION MARKETS

PRIVATE JET TRAVEL REPORT UK, EUROPE, RUSSIA / CIS BUSINESS AVIATION MARKETS 2015 FOREWORD INDUSTRY FORECASTS V. Western Europe.....................
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PRIVATE JET TRAVEL REPORT

UK, EUROPE, RUSSIA / CIS BUSINESS AVIATION MARKETS

2015

FOREWORD

INDUSTRY FORECASTS V. Western Europe..................................... 17

INDUSTRY TRENDS

V. Northern and Central Europe................ 18

V. F  light Departures Across Europe 2015... 5

V. South East Europe................................. 19

V. Key Countries........................................... 6 V. R  egional Flows and Full Year Trends 2014.......................................................... 7

V. Europe (Including Russia)...................... 21

V. T  op Airports and Activity by Mission Profile 2014.............................................. 8 V. Activity by Aircraft Fleet Category........... 9

V. Russia/CIS.............................................. 20

SUMMER HIGH SEASON TRENDS V. Event Overview....................................... 23

V. Activity by Aircraft Segment.................. 10

V. Med Traffic............................................. 24

V. Development of Summer Season Activity.................................................... 11

V. Three Airports to Watch......................... 28

V. Busiest Days for Flight Activity 2014..... 12 V. Long-Term Trends in Flight Activity...... 13 V. Top Aircraft-Types for Europe................ 14

V. Top City Pairs......................................... 25

ABOUT THIS REPORT

V. Top European City Pairs......................... 15

2

PRIVATE JET TRAVEL REPORT 2015

FOREWORD Having founded private jet charter service Victor in the depths of the eurozone’s 2011 recession, both the company and private jet travel have come a long, long way where technology and innovation are concerned. With four years of rapid change to look back on, and more ahead, we feel now is the ideal time to share our first-ever industry report. The following pages contain new findings relevant to British, European and Russian/Commonwealth of Independent States (CIS) private jet travel markets. Of particular note are the new patterns of activity around the ‘summer VIP calendar’ and encouraging wider market growth, despite some ongoing challenges and an economically turbulent few years. It is particularly exciting for me to see continued, buoyant demand for private jet travel services from the high and ultra-high net worth individual customer base that Victor serves. Perhaps this can be put down to the gradual casting aside of the traditional opaque charter-broker model and the increasing adoption of on-demand, totally flexible private jet booking technology, which proves more efficient for both passenger and operator. With Victor, we are aiming to make private jet charter quicker, easier and more transparent. Booking by phone, web or innovative app, and gaining full disclosure of pricing and aircraft details across 130 trusted partner operators, our fliers are in total control. Supported by an experienced, around-the-clock customer service team, travellers can enjoy a truly flexible, high quality alternative to fixed ownership and other methods of charter. Page 8 of this special report highlights a specific increase in private AOC/charter flights. Before I go, I’d like to offer my special thanks to WINGX Managing Director Richard Koe for his valuable contribution to this report. I hope you find it as informative and interesting as I. Clive Jackson Founder & CEO Victor flyvictor.com

3

PRIVATE JET TRAVEL REPORT 2015

INDUSTRY TRENDS 4

PRIVATE JET TRAVEL REPORT 2015

FLIGHT DEPARTURES ACROSS EUROPE 2015 (JAN-JUNE) • The countries with most leisure activity are growing, including the UK, France, Spain and Italy

IS

FI

12,7% %

--9,5% -9 9,5%

-0,4%

RU

NO

• As of July 2015, France has gained on average an extra 536 private jet departures each month

-9,0% -3,2% -3 3,2% -5,8% -5,8 8%

IE

-2,9% %

UK

BE -3,8% -3,8 8%

DK

-24,3% 24 4,3%

D

NL

PL

-2.7% -2.7 7%

9,9% 9,9

CZ

LU CH

HR

0,0% 0 ,0% ,0

3,1% 3,

-52,5% -52, 52,5% 5%

4,6% 6%

SA -8,7% -8, ,7%

RS

10,6% 1 0,6% BA

5,4% % RO

-2,0% -2 ,0%

21,8% 8%

-9,0% -9 9,0 ,0% 0%

-8,0% %

ES

BG

GR

18,7% %

TR

0,2% 0,2 ,2%

)

MA

UA

MD

HG H G

3,8% 3,8 3 ,8%

--5,5% -5,5 5%

I

--9,7% -9 9,7 7%

A

--2,8% -2,8 8%

F

PT

BY

-4,8%

--1,2% -1,2 ,2 2%

2,9% ,9

25

-7,3% -7,3 %

-4,9%

1,8%

28

-7,3% %

SE

• Austria and Switzerland are down year-to-date (YTD)

-24,4% -24 4,4% 4% %

EE

CY

1,3% 1 ,3% %

* DEPARTURES RELATE TO ALL PRIVATE JET MOVEMENTS.

5

INDUSTRY TRENDS

PRIVATE JET TRAVEL REPORT 2015

122.737

600.000

102.014

500.000

60.645

400.000

50.040

40.803

300.000

24.625

23.513

23.266

200.000

21.714

21.154

14.515

14.482

100.000

12.537

10.913

99.359

Percent of Total HGG

Ot he r[ 29 ]

Po la nd

Gr ee ce

Be lg iu m

ed en N et he rla nd s

Sw

Ru ss ia

ey rk Tu

a st Au

Sp

ai

ri

n

nd la er

N or wa y

0

itz

• Austria the seventh-largest market (3.1%)

700.000

Ita ly

• Switzerland is the fifth-largest market (6.3%)

795.097 152.780

Sw

• Germany is the second-largest market (15.4%)

800.000

UK

• In 2014, almost a fifth of private jet demand came from France (19.2%)

Departures

Ye ar To 20 tal 14 Fr an ce Ge rm an y

KEY COUNTRIES IN 2014

100,0% 19,2%

15,4%

12,8%

HG

7,6%

12,5% 6,3%

5,1%

3,1%

3,0%

2,9%

2,7%

2,7%

G

1,8%

1,8%

1,6%

1,4%

YOY Growth [ ( + / - ) departures ] 3.363

4,000

2.256

2,000

1.150

-157

-2,000

6

INDUSTRY TRENDS

-230

-290

-454 -2.697

-4,000 -6,000

-263

-5.317

1.232

257

58

0

113 -355

-3.306 -5.994

PRIVATE JET TRAVEL REPORT 2015

REGIONAL FLOWS AND FULL YEAR TRENDS 2014 SWITZERLAND

SPAIN

NORWAY

85,131

6,588

12,135

7,231

11,298

4,784

136

-1.3%

0.4%

3.6%

1.5%

1.5%

-0.4%

6,680

71,215

4,975

3,699

6,424

2,491

339

5,019

1,381

1.0%

3.0%

3.1%

3.4%

0.0%

2.0%

7.3%

0.1%

-9.3%

11,919

5,210

48,073

3,758

5,317

3,627

604

913

614

2.3%

2.4%

4.8%

7.6%

1.3%

3.4%

6.9%

-1.2%

4.6%

7,336

3,645

3,779

25,794

4,021

2,086

62

1,560

130

508

1,855

0.6%

2.2%

6.6%

-2.9%

-1.0%

2.8%

24.0%

6.1%

-9.7%

-3.2%

-4.2%

11,431

6,576

5,304

4,008

7,897

1,975

108

1,723

351

344

1,551

829

881

317

386

2.5%

0.9%

-1.2%

-1.7%

-1.4%

-1.6%

-8.5%

-2.2%

10.0%

-15.9%

-6.0%

2.9%

-2.1%

-10.5%

-32.4%

4,827

2,372

3,724

2,036

1,939

17,338

106

554

141

156

642

466

590

99

95

1.1%

1.7%

5.1%

0.9%

-2.8%

4.3%

8.2%

12.1%

-4.1%

-6.6%

1.9%

11.2%

11.5%

-4.8%

-24.6%

116

73

19,703

46

867

18

89

81

57

27

13

-8.8%

-1.8%

-9.8%

2.0%

100.0%

-8.2%

26.6%

14.0%

-10.0%

-27.8%

1,605

3,177

555

503

8.0%

-1.2%

1.6%

-36.4%

790

1,951

2,441

1,376

1,529

450

-3.2%

-3.7%

2.1%

-4.4%

4.3%

-27.1%

553

1,617

1,925

1,591

283

285

8.2%

0.7%

0.7%

4.1%

1.4%

-26.2%

419

555

304

19.0%

-11.1%

POLAND

3,205 -6.0%

BELGIUM

NETHERLANDS

646 7.7%

TURKEY

399 9.9%

SWEDEN

1,498 -0.3%

AUSTRIA

RUSSIA

UKRAINE

ITALY

ORIGIN

• There were 6,576 flights between Switzerland and Germany, up 1%

UK

• Intra-UK has much lower activity (48,000) but was up 5% last year

France Flights Germany Flights UK Flights Italy Flights Switzerland Flights Spain Flights Norway Flights Austria Flights Sweden Flights Turkey Flights Russia Flights Netherlands Flights Belgium Flights Poland Flights Ukraine Flights

GERMANY

• France has the most intra-country travel, with 85,000 flights last year alone

FRANCE

DESTINATION

334 -41.6%

139

345

559

55

-7.3%

2.7%

5.9%

31.0%

1,531

5,093

890

1,609

1,714

540

36

5,578

92

221

980

275

234

343

411

-4.6%

1.4%

-3.1%

5.0%

-5.4%

13.7%

2.9%

-6.4%

-14.8%

1.4%

11.9%

5.0%

-4.1%

-10.2%

-18.6%

396

1,461

617

123

339

108

883

95

13,866

25

146

138

106

187

13

16.1%

-4.3%

7.3%

-10.2%

7.3%

-10.7%

-1.0%

-24.0%

-3.6%

-10.7%

-5.8%

15.0%

-17.2%

-3.6%

-27.8%

637

752

602

551

318

159

18

231

47

13,541

1,113

85

70

53

310

2.2%

6.2%

7.5%

-3.0%

-16.3%

-10.2%

50.0%

0.4%

27.0%

-11.6%

-47.2%

-2.3%

34.6%

-7.0%

-27.7%

3,121

1,978

1,556

1,847

1,509

640

107

926

178

1,118

29

170

137

272

1,336

-3.7%

-0.7%

-1.1%

-2.2%

-7.6%

2.9%

-1.8%

0.9%

6.6%

-47.5%

-63.3%

-14.6%

7.9%

-9.6%

-49.5%

1,556

2,557

1,930

430

827

449

82

287

155

57

148

3,343

920

119

27

3.1%

3.1%

-0.6%

18.1%

2.9%

22.3%

26.2%

-1.4%

26.0%

-5.0%

-20.4%

-1.8%

-5.3%

15.5%

-42.6%

3,322

1,443

1,605

560

946

554

60

238

106

50

0.7%

-4.0%

5.7%

-8.2%

6.4%

9.9%

15.4%

-5.6%

-6.2%

531

1,655

296

281

330

97

24

364

192

41

219

-0.9%

4.0%

6.1%

-6.6%

-6.8%

1.0%

-17.2%

-6.7%

-0.5%

-33.9%

-12.0%

132

892

2,784

126

22

8.2%

-7.5%

-8.2%

-2.3%

-57.7%

124

135

4,892

156

24.0%

6.3%

4.8%

-33.3%

474

452

276

324

362

93

15

442

13

317

1,320

20

25

179

5,004

-38.1%

-31.8%

-33.2%

-43.6%

-35.6%

-30.1%

7.1%

-12.5%

-18.8%

-25.2%

-48.1%

-52.4%

-57.6%

-23.5%

-47.4%

*ALL PRIVATE JET TRAVEL. 7

INDUSTRY TRENDS

PRIVATE JET TRAVEL REPORT 2015

TOP AIRPORTS AND ACTIVITY BY MISSION PROFILE 2014 • In 2014 AOC/charter flights grew, whilst private flights declined • The busiest 10 airports in Europe are roughly 60:40 commercial vs. AOC/charter versus private •O  ut of Geneva: - Charter flights were up 4% - Private flights fell 12%

Le Bourget

44%

Geneva

47%

Nice Cote D’Azur

56% 53%

40%

Luton

53%

Zurich

55%

45%

59%

11.248

Linate

43%

57%

10.155

Ciampino

54%

46% 41%

59%

7.971

Munchen

40%

60%

6.854

Stuttgart

40%

Biggin Hill Barajas London Oxford

6.623

60% 41% 57%

43%

44%

56% 72%

28%

Northolt

31%

69%

5.210

31%

69%

5.137

Zhuliany

57%

43%

Private

AOC/charter

4.943

-1,7%

0,9% 7,2%

8,5%

9,5%

-3,5%

1,2%

4,9% 3,1%

-0,9%

-4,0%

-7,3%

0,2%

6,0%

-5,1%

-1,6%

1,0%

-9,1%

1,9%

11,1%

-5,4%

-3,0%

0,6%

-11,0%

0,0%

10,2% 11,7%

7,7%

2,9%

21,3%

9,6%

5,6%

-3,6%

10,4% 2,3%

7,6%

2,8%

-10,1% -29,2%

-1,9%

3,3%

5.694

Vaclav Havel

6,2%

9,1%

-4,7%

5.794

0,6%

6,1%

-9,0%

5.282

82%

18%

5.874

2,0% -3,8%

4,2% 3,1%

6.453

YOY Growth Total

2,9%

-6,6%

8.672

Vienna Schwechat

59%

0,9%

12.050

41%

YOY Growth AOC/charter

-11,5%

13.859

Farnborough

Schoenefeld

INDUSTRY TRENDS

17.742

12.379

60%

40%

25.593 15.737

60%

47%

Vnukovo

Mandelieu

8

YOY Growth Private

Total Departures Top 20 Airports (Year 2014)

0,4% -32,0%

2,7% -3,1% -30,9% Low

High

PRIVATE JET TRAVEL REPORT 2015

ACTIVITY BY AIRCRAFT FLEET CATEGORY A snapshot from May 2015 shows: • Most private jet activity was business jet (60%) • The rest was turboprop and piston (40%) • At the start of the summer season, private jet activity was 2% down on last year

Departures May 2015 Private

Business Jet

Business Turboprop

Business Piston

Total

42,7%

AOC/charter

57,5%

59,0%

80,0%

53,3%

Market Share

44.328

41,0%

60,0%

14.642

20,0%

20,0% 14.466

20,0%

46,7%

73.436

YOY: Private

YOY: AOC/charter

-1/3%

-2,0

-1/4%

-1,7%

1,5%

5,4%

100,0%

0,6%

YOY: Total

-0,2%

13,9%

0,8%

9,8%

0,7%

100%

9

INDUSTRY TRENDS

PRIVATE JET TRAVEL REPORT 2015

ACTIVITY BY AIRCRAFT SEGMENT The most frequently used private jets in Europe are: • Light (capacity: 4-8 passengers) • Heavy (capacity: 12-15 passengers) • During the past 12 months, ULR flights have risen 8%

AC Segment - Avg Seats

Private Departures May 2015

Bizliner* (22+)

-20.7%

322

Ultra Long Range (15-17)

Midsize Jet (9-10)

3,785

Very Light Jet (4-5)

-5.9%

-10.4%

6,008 9,528

-0.9%

2,642

2.4%

3,207

2.2% 14,642

Piston** (4-16)

14,466

-3.8%

-3.2% -6.3%

-3.4%

-2.0%

-3.1%

-2.9%

-2.0%

-4.9%

-0.6%

-0.2%

73,436

8.1% -5.6%

-13.0% 0.1%

Turboprop (4-16)

Total

4.0%

7.9%

4,559

Light Jet (4-8) Entry Level Jets** (4-5)

-6.8%

Last 12 Months

-35.7%

2.8% 8,699

Super Light Jet (9-10)

YTD Growth

-4.9%

5,574

Heavy Jet (12-15) Super Midsize Jet (10-11)

YOY Growth

5.4% 0.8%

9.8% 0.7%

1.5% -1.9%

2.1% -0.3% -1.2%

* Only Airbus A318 Elite , Airbus A319, and BBJ3 are considered ** Entry Level jets comprise older light jet types such as Citation I and CJ1 *** Only 2 engine piston aircraft are considered

10 INDUSTRY TRENDS

PRIVATE JET TRAVEL REPORT 2015

DEVELOPMENT OF SUMMER SEASON ACTIVITY 2006-2014 • 2014’s peak season totalled 61,831 departures (down 2.5% on the previous year) • 2014 saw the least activity since 2010 (63,530) • 2014 was on a similar level with 2006 (59,070) • 2014 was 8% below the August peak in 2008 (67,426)

Departures per Month 0 2006

66,491

2008

67,426

2009

YOY Growth 12,0%

59,070

2007

12,6%

1,4%

-10,7%

60,230

2010

63,530

2011

64,396

2012

63,053

2013

63,439

2014

11 INDUSTRY TRENDS

10,000 20,000 30,000 40,000 50,000 60,000 70,000

61,381

5,5%

-8.3%

1,4%

-2,1%

0,6%

-2,5%

PRIVATE JET TRAVEL REPORT 2015

BUSIEST DAYS FOR FLIGHT ACTIVITY 2014 23rd May Monaco Grand Prix 2,221 Flights 20th June 2,160 Flights 27th June 2,319 Flights

23/05/2014

20/06/2014

27/06/2014

2.221

2.160

2.319

Departures 2014 2.400 2.200 2.000 1.800 1.600 1.400

0 1.447

1.200 1.000 800 600 400 200 0 1/1/2014

12 INDUSTRY TRENDS

31/12/2014

PRIVATE JET TRAVEL REPORT 2015

LONG-TERM TRENDS IN FLIGHT ACTIVITY • High season summer demand peaked in July 2014 with a 83% increase in departures (77,000) • The 2014 winter low was 42,000 • Growth since the 2008 Eurozone recession can be seen in the Growth Corridor.

Departures per Month 80.000 85.000 75.000 70.000 65.000 60.000 55.000 50.000 45.000 40.000 35.000 2005

2006

2007

2008

Inc. Seasonal Variation

2009

Excl. Seasonal Variation

Growth Path 2006-2008

13 INDUSTRY TRENDS

2010

2011

2012

2013

2014

6 Month Rolling Average

Recovery Corridor

PRIVATE JET TRAVEL REPORT 2015

TOP AIRCRAFT-TYPES FOR EUROPE 2014

Departures 2014

• The King Air 200 was the most popular private jet in Europe for 2014 (more than 50,000 departures)

50.000

• The jet with most growth in departures was the Falcon 7X (10% increase)

55.000 BEECH Super King Air 200

45.000

CESSNA Cessna Excel/XLS

HAWKER BEECHCRAFT 700-900

40.000

DASSAULT Falcon 2000

35.000

CESSNA CitationJet/CJ1

CESSNA Citation C12

30.000 25.000

10.000

DASSAULT Falcon 900

-6,0%

-4,0%

BOMBARDIER Global Express

BOMBARDIER Challenger 300

5.000

-8,0%

39,6%

Top 15 Aircraft Other

BOMBARDIER Challenger 600 Series

CESSNA Citation II/Bravo

0 -10,0%

60,4%

PILATUS PC-12

GULFSTREAM V/G500

20.000 15.000

CESSNA Citation Mustang

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

DASSAULT Falcon F7X

12,0%

14,0%

16,0%

YOY Growth 18,0%

YEAR-ON-YEAR GROWTH Note: Only Jets and TurboProp are considered

14 INDUSTRY TRENDS

PRIVATE JET TRAVEL REPORT 2015

TOP EUROPEAN CITY PAIRS

Flights 2014

During 2014, the busiest private jet connection by far was Paris-Le Bourget (France)-Geneva Cointrin International (Switzerland). Vnukovo International (Russia)-Nice-Cote d’Azur (France) also features as a top pair, with some growth (4%) despite the repercussions of the Ukraine crisis.

GENEVA COINTRIN INTERNATIONAL - PARIS-LE BOURGET NICE-CÔTE D’AZUR - VNUKOVO INTERNATIONAL CIAMPINO–G. B. PASTINE INTERNATIONAL - LINATE VNUKOVO INTERNATIONAL - NICE-CÔTE D’AZUR PARIS-LE BOURGET - NICE-CÔTE D’AZUR NICE-CÔTE D’AZUR - PARIS-LE BOURGET

LONDON LUTON - PARIS-LE BOURGET PARIS-LE BOURGET - LONDON LUTON Vnukovo International

PARIS-LE BOURGET - FARNBOROUGH NICE-CÔTE D’AZUR - LONDON LUTON FARNBOROUGH - PARIS-LE BOURGET NICE-CÔTE D’AZUR - FARNBOROUGH ADOLFO SUÁREZ MADRID–BARAJAS - R T LEBLANC

London Luton Farnborough

LONDON LUTON - NICE-CÔTE D’AZUR FARNBOROUGH - GENEVA COINTRIN INTERNATIONAL

Paris-Le Bourget

FARNBOROUGH - NICE-CÔTE D’AZUR PARIS-LE BOURGET - LINATE

Zürich

LINATE - PARIS-LE BOURGET Bordeaux-Mérignac

Linate

Geneva Cointrin International

Sabiha Gökçen International

Nice-Côte d'Azur Adolfo Suárez Madrid–Barajas

R T Leblanc

Ciampino–G. B. Pastine International

Atatürk International

GENEVA COINTRIN INTERNATIONAL - FARNBOROUGH R T LEBLANC - ADOLFO SUÁREZ MADRID–BARAJAS GENEVA COINTRIN INTERNATIONAL- ZÜRICH

Esenboga International

ESENBOĞA INTERNATIONAL - ATATÜRK INTERNATIONAL ATATÜRK INTERNATIONAL - ESENBOĞA INTERNATIONAL LONDON LUTON - GENEVA COINTRIN INTERNATIONAL PARIS-LE BOURGET - BORDEAUX-MÉRIGNAC ESENBOĞA INTERNATIONAL - SABIHA GÖKÇEN INTERNATIONAL

15 INDUSTRY TRENDS

1.182 1.159 1.123 1.113 1.059 1.041

LINATE AIRPORT- CIAMPINO–G. B. PASTINE INTERNATIONAL

NICE-CÔTE D’AZUR - GENEVA COINTRIN INTERNATIONAL

TOP 30 CITY PAIRS - 2014

1.888 1.868

PARIS-LE BOURGET - GENEVA COINTRIN INTERNATIONAL

GENEVA COINTRIN INTERNATIONAL - NICE-CÔTE D’AZUR

BUSINESS JET ONLY

+/-

-257

42

-256

41 87 79

-117 -131

821 799 700 658 639 572 571 561 546 546 546 537 527 526 507 503 491 4,3% 480 469 469 447 438

173 143

53 64 42 71 42 80 56 -1 37 59 -19 -3 -6 11 -66 -107 -115

95,7%

-35 Top 30 Pairs

Other

45 22

YOY: Growth (in %) 10,1 8,5 -17,9 3,8 -18,6 3,8 9,0 8,2 -12,5 -14,1 8,2 10,8 7,0 14,2 7,9 16,6 11,4 -0,2 7,3 12,3 -3,5 -0,6 -1,2 2,2 -11,8 -18,2 -19,7 -6,9 11,2 5,3

PRIVATE JET TRAVEL REPORT 2015

INDUSTRY FORECASTS 16

PRIVATE JET TRAVEL REPORT 2015

WESTERN EUROPE UK and Ireland growth continues; and private jet travel is resilient in France despite a weak economy. Total Western Europe YOY: 2.8% Opportunities: •W  estern Europe – London in particular – retains the largest and fastest-growing population of ultra-high-net-worth individuals (UHNWIs) •S  ustained recovery and jobs-creation in UK and Ireland •W  estern Europe is a world-leader in UHNWI property and tourism •A  weak Euro (EUR) is supporting export markets, with cross-border merger and acquisition (M&A) activity at an all-time high, evident in ULR jet connections between UK and Africa, Middle East and Asia •C  ost of private jet travel operations easing alongside a diminished fuel price

•M  iddle East and CIS trade is particularly affected by geopolitical issues •B  uyer intentions shifting towards lighter aircraft

Challenges: •F  rance’s economy is ‘in a rut’ and UK growth is slowing. 2017 UK-EU referendum may slow investment and limit M&A •M  uch of Western Europe has no more than a low growth trend with downside risk of further macroeconomic shocks •C  orporate private jet users are cautious given an uncertain climate and an outdated preconception of the ‘expense’ and ‘excess’ of private jet travel •N  et effect of oil prices appears to be negative for large aircraft users (regarding income-exposure to oil)

17 INDUSTRY FORECASTS

PRIVATE JET TRAVEL REPORT 2015

NORTHERN AND CENTRAL EUROPE Germany and Austria are in slow recovery mode, Scandinavia is strong and Switzerland slackening. Total Northern and Central Europe YOY: 1.5% Opportunities: •I mproved Purchasing Managers Index (PMI) outlook in Germany could herald recovery, after a poor first quarter (Q1 2015) •R  obust growth in Poland •A  weak EUR and falling oil prices will support German corporate exports and associated private jet travel •S  candinavian economic growth forecasts upgraded •E  xport orientation of Germany in particular requires direct links to extra-Euro destinations, an important private jet travel requirement (note Germany’s corporate fleet profile: heavy, large-cabin)

usage, with consequence for overall uplift trend •T  here is some resurgence in light aircraft usage. Scandinavia’s increased activity in particular is largely light and turboprop

•A  weak EUR is likely to spur more intercontinental tourism, for example from China, Middle East and US, drawing in larger-cabin aircraft Challenges: •T  he Ukraine crisis is largely unresolved, with sanctions unlikely to lift. Germany is most exposed to impact on trade with CIS •S  wiss franc (CHF) appreciation in Switzerland has set the economy back and had a direct impact on private jet travel, which stalled January-February 2015 •A  ny impact on CIS trading links has direct repercussions for larger aircraft

18 INDUSTRY FORECASTS

PRIVATE JET TRAVEL REPORT 2015

SOUTHERN EUROPE Growth is sustained in Spain, but weak in Greece, Turkey and Italy. Total South East Europe YOY: 1.0% Opportunities: •S  pain continuing to recover from recession, with International Monetary Fund (IMF) forecasting Gross Domestic Product (GDP) for 2015 of 2.5%, versus 1.4% in 2014. Spain had leading Eurozone PMI for Q1 2015 •O  ther smaller economies are in recovery mode, including Poland, Czech Republic and Israel •T  here is modest recovery occurring in Italy, remaining an important UHNWI market •A  weak EUR will bring in more travel and tourism from the Middle East and Asia, typically large-cabin aircraft •I beria recovery will galvanise South American connections

•E  urozone members’ increasingly left-wing agenda may hamper corporate use of aircraft •A  weak EUR further undermines purchasing power for new aircraft •W  here there are signs of recovery, most apply to light-jet use

•T  urkey, in particular, favours heavy jet usage. Latest data suggests GDP recovery Challenges: •E  astern Europe experiences the greatest impact from Ukraine crisis. A number of countries (including Turkey) also have high risk from exposure to US Dollar (USD) fluctuations •T  urkey PMI at six-year low April-May 2015

19 INDUSTRY FORECASTS

PRIVATE JET TRAVEL REPORT 2015

RUSSIA/CIS There’s recession in Russia; Ukraine’s near-bankrupt; and there’s negative spillover for CIS. Total Russia/CIS YOY: -25% Opportunities: •S  till a chance that ceasefire with Ukraine holds and relations with Russia improve. Some Q1 2015 recovery in Russian Ruble (RUB), as well as oil price (though reversed in Q2) •M  any UHNWIs are largely unsanctioned and still need aircraft to support their lifestyle. Med resorts should still get a big share of visitors from Vnukovo International (Russia) •I t is evident from city pair activity that some private jet connections between Russia and Europe are little-affected. For example Austria (where many Russian jets are registered). The large majority are heavy jets •M  ore trade links with Asia and use of large aircraft Challenges: •U  kraine situation uncertain with ongoing conflict possible in near future. •R  ussia is currently in recession, with sanctions and low oil compounding alreadypresent structural weakness •T  he predominant share of CIS regional fleet and activity is comprised of large jets – those most affected by any economic downturn •L  arge aircraft users are typically most exposed to oil and commodity price-falls •B  usiness jet purchasing power is undermined by depreciation 20 INDUSTRY FORECASTS

PRIVATE JET TRAVEL REPORT 2015

EUROPE (INCLUDING RUSSIA) There is cyclical recovery, but weak growth, due to a ‘cautious customer’ and CIS impact. Total Europe (including Russia) YOY: 0.5% Opportunities: •S  light upgrade to Eurozone economic growth so far in 2015, with a handful of stronger economies meaning pick-up in private jet activity for Spain, UK and potentially Germany •L  ikely continuation of a weak EUR, easing of fiscal austerity, support of European Central Bank (ECB) programme, strong stock market and a spike in M&A activity: all pointing to wealth-creation private jet activity •O  il price-fall has freed up disposable income and lowered operating costs. Light jet owners get a relatively bigger boost •A  fter long-stagnating, customer interest in mid-size and light aircraft has increased over the last 12 months •A  strong US market and weak EUR should support transatlantic connections in particular Challenges: •L  ong-overdue economic recovery in Europe is rather weak, and is lauded despite continued high levels of unemployment •G  lobal uncertainty following China’s devaluation of Yuan Renmibi (CNY/RMB)

21 INDUSTRY FORECASTS

PRIVATE JET TRAVEL REPORT 2015

SUMMER HIGH SEASON TRENDS 22

PRIVATE JET TRAVEL REPORT 2015

Top Three Late-Summer Events September 2015

EVENT OVERVIEW Summer Events and Spikes in Flight Frequency In summer 2015, some smaller airports saw over 100% increase in all private jet arrivals and departures.

Monaco Yacht Show | Nice-Cote d’Azur (France) • 151.4% spike in flights through Nice’s airport (+60 per day) •F  liers from France and UK provided 31% of demand

Events to be noted for their high levels of activity include:

•4  0% of arrivals were large-cabin jets

TOUR DE FRANCE FINISH JULY 2015

Monza Grand Prix | Linate (Italy)

Paris Le Bourget: 25.2% Up 17 per day to 83

• 81.3% more flights at Milan’s airport (+22 per day) • 40% of traffic is Italy-domestic

WIMBLEDON JUNE-JULY 2015

•F  alcon 2000 was the most popular jet during this event, responsible for one-in-ten (10%) flights

London Northolt: 113% Up 13 per day to 25  TARS OF THE WHITE NIGHTS S JULY-AUGUST 2015

St Petersburg: 292% Up 19 per day to 25

23 SUMMER HIGH SEASON TRENDS

Venice Film Festival | Venice Marco Polo (Italy) 25%

113%

292%

Tour de France

Wimbledon

St Petersburg

•1  58.1% spike in flights through Tessera’s airport (+12 per day) •5  0% of arrivals are from Italy, France and UK •T  he super-light Cessna XLS was the most-used aircraft type

PRIVATE JET TRAVEL REPORT 2015

MED TRAFFIC Top Airports June-August 2015

Top Aircraft June - August 2015 CESSNA XLS

Nice-Cote d’Azur, France • 13,250 flights • -1.4% year-on-year (YOY) • 23,025 passengers

16,563 departures 10% of total summer activity HAWKER BEECHCRAFT 700-900

• Indicative fare of over €141 million

11,305 departures 6.8% of total summer activity

Olbia Costa Smeralda, Italy

DASSAULT FALCON 2000

• 6,220 flights • +2.3% YOY • 10,251 passengers • Indicative of fare of over €52 million

Ibiza, Spain • 5,634 flights •+  8.7% YOY •8  ,295 passengers • Indicative of fare of over €41 million

24 SUMMER HIGH SEASON TRENDS

6,400 departures 4% of total summer activity BOMBARDIER CHALLENGER 600

8,515 departures 5.1% of total summer activity BOMBARDIER GLOBAL EXPRESS

5,977 departures 3.6% of total summer activity

Cessna XLS

10%

Hawker Beechcraft 700-900

6.8%

Dassault Falcon 2000

4%

Bombardier Challenger 600

5.1%

Bombardier Global Express

3.6%

PRIVATE JET TRAVEL REPORT 2015

TOP CITY PAIRS Geneva and the Med 2014-2015 Geneva-Nice is the most popular of Geneva’s summer connections, attracting 1,842 flights per year. Other highly-frequented connections are Cannes (615), Ibiza (293), Olbia (289) and La Mole (246). 1. G  eneva Cointrin International (Switzerland)-Nice-Cote d’Azur (France) The May-September summer season captures 46% of traffic between Geneva and Nice. May is boosted by Monaco Grand Prix. The highest peaks are in July and August, with 230 flights in each of these months. 2. G  eneva Cointrin International (Switzerland)-Cannes-Mandelieu (France) Flights peak in May, with 87 flights (14% of total) and strong demand for both Cannes Film Festival and Monaco Grand Prix. There is also a late season peak in September (75 flights). 3. Geneva Cointrin International (Switzerland)-Ibiza (Spain) Ibiza is the second-busiest summer connection from Geneva, with more than two flights per day in August (65 flights). Even in October there is significant demand (20 flights). 4.  G  eneva Cointrin International (Switzerland)-Olbia Costa Smeralda (Italy) Olbia has a shorter season than Ibiza in terms of Geneva connections. August experiences very high activity, with over three flights per day (103 total). 5 G  eneva Cointrin International (Switzerland)-La Mole (France) La Mole arrivals from Geneva increase fast in early summer, peaking in July (53 flights). The frequency drops in August (35 flights), then sees late season growth September-October.

25 SUMMER HIGH SEASON TRENDS

PRIVATE JET TRAVEL REPORT 2015

TOP CITY PAIRS Istanbul and the Med 2014/2015 Istanbul has increasing demand for private jet travel, with the principal leisure destinations being Bodrum and Dalaman for domestic flights (648 and 237 per year respectively) and Nice for international flights (106). 1. A  taturk International (Turkey)-Milas Bodrum International (Turkey)

Bodrum has a very busy summer peak in August, with 151 flights. By September the summer season for jet-setters slows (57 flights).

2.  Ataturk International (Turkey)-Dalaman International (Turkey)

Nearby, Dalaman sees a peak in arrivals from Istanbul in June (53 flights) then becomes quiet until August and September, which are relatively busy (43 and 38 flights respectively).

3. Ataturk International (Turkey)-Nice-Cote d’Azur (France)

The Monaco Grand Prix attracts jet-setters from Istanbul in May (13 flights). The two peak months for flights from Istanbul to Nice are August and September (20 and 17 flights respectively).

4. Fast Facts:

Norwegians + Turks are Europe’s emerging jetsetters in 2014/2015. 1. Norway - Turkey (100% Flight Increase) 2. Turkey - Belgium (35% Flight Increase) 3. Norway - Italy (31% Flight Increase)

26 SUMMER HIGH SEASON TRENDS

PRIVATE JET TRAVEL REPORT 2015

TOP CITY PAIRS 2014-2015 London and the Med Luton and Farnborough generate the most connections with the Med. Nice is a top destination, drawing 2,965 movements from London’s top four private jet airports. Ibiza and Cannes follow with 271 and 262 flights respectively. 1. L  ondon Luton (UK)-Nice-Cote d’Azur (France)

The Monaco Grand Prix is an obvious draw in May, generating 164 flights. The height of the season is July (181 flights), with August and September also popular (130 and 124 flights respectively).

2. L  ondon Luton (UK)-Ibiza (Spain)

Ibiza now provides a long summer season for London’s VIP tourists departing from Luton, with over 30 flights per month May-September, and 60 in August.

27 SUMMER HIGH SEASON TRENDS

PRIVATE JET TRAVEL REPORT 2015

THREE AIRPORTS TO WATCH FOR 2016 Based on 2015 movement, these three airports stand as key hubs for private travel next summer.

Ibiza | Spain

Palma De Mallorca | Spain

Olbia Costa Smeralda | Italy

Overview

Ibiza private jet movements peak at 2,177 in August, equivalent to 70 daily arrivals and departures. The June-August period generates about 55% of total annual traffic.

Majorca experiences less activity than Ibiza, peaking at 1,541 flights for August, but has a longer season, with around 500 flights in March and again in November.

In August, Olbia is the second-busiest Med airport in Europe (behind Nice). After a peak in August (2,834 flights), there’s a big drop-off in September (820 flights).

Top Aircraft Segments

 ight jets account for a fifth (20.9%) of activity L in Ibiza during the summer season. There are 788 ultra-long range (ULR) aircraft arrivals and departures, highlighting Ibiza’s increasing VIP status.

Majorca gets a relatively high number of turboprop arrivals (1,655 flights), and over a quarter (25.1%) of activity is light jet. Compared to Ibiza, fewer of Majorca’s visitors arrive in large-cabin aircraft.

More than one third (34%) of Olbia’s private jet visitors arrive in heavy jets, compared with 22% for Ibiza and 18% for Majorca. 13% of Olbia arrivals are in ULR jets.

Top Aircraft Types

Cessna XLS is the ‘workhorse’ for Ibiza’s VIP customers, accounting for 1,013 flights. The Mustang is also popular (735 flights). The most popular ULR jet is the Gulfstream V/550 (208 flights).

The King Air 200 drives most of the turboprop traffic (1,043 flights). Older light-cabin jets such as Cessna Citation CJ1 and CJ2 are also popular (398 and 664 flights respectively). The super mid-size Falcon 2000 jet flies in regularly (419 flights).

Several ULR aircraft-types feature in the top 20 touching down in Olbia: Bombardier Global Express (358 flights), Gulfstream V/G550 (350 flights) and Falcon 7X (186 flights). Piaggio Avanti is the most popular turboprop (270 flights).

Top Connections

Palma De Mallorca (Spain) generates 676 flights to-and-from Ibiza. The second-busiest connection is Barcelona International (Spain) (492 flights). Vnukovo International (Russia) stands out as the longest route, flown 114 times during the year.

There is a significant amount of Spanish islandhopping, with Ibiza and Menorca the busiest Majorca connections (689 and 670 flights respectively). Zurich (Switzerland) is the busiest connection outside Spain (258 flights).

Vnukovo International (Russia) is the third most popular connection with Olbia, with over 400 flights per year. Nice-Cote d’Azur (France) and Linate (Italy) bring the largest numbers of ‘local’ visitors (597 and 586 flights respectively).

28 SUMMER HIGH SEASON TRENDS

PRIVATE JET TRAVEL REPORT 2015

ABOUT THIS REPORT

ABOUT VICTOR

The Victor Private Jet Travel Report 2015 is a business aviation (private jet travel) industry report, based on research conducted by WINGX Advance.

Victor is revolutionising the world of private jet charter to make comparing, booking and managing flight simpler, faster and more enjoyable than ever before.

Report findings are based on data drawn from national private jet travel associations, Eurocontrol, and the Federal Aviation Administration (FAA), covering 50 European, Middle Eastern and North African national territories. The data covers all types of private (owner) and commercial Air Operator’s Certificate (AOC) flights (AOC flights include charter and special mission activity such as medical flights, and exclude maintenance and training flights).

Membership is free – there are no hidden costs or surcharges. Victor delivers at least three charter quotes within 60 minutes, so that members can compare the best aircraft, operators and prices. Victor’s unique combination of smart technology, transparency and exceptional customer service provided by a dedicated 24/7 team means that its 45,000-plus members, with access to 7,000 aircraft – via a network of 131 partner operators – are always connected and in control. Victor has achieved three-year average sales growth of 142.93% per annum, ranked number 15 in the 2015 Sunday Times Hiscox Tech Track 100, and in 2013 was honoured at the Walpole British Luxury Awards as the ‘Brand of Tomorrow’ and won TTG’s ‘Leading Edge’ Award.

Flight activity analysis pertains to all Instrument Flight Rules (IFR)-registered flights, within Eurocontrol territories and between Eurocontrol territories and the rest of the world. Analysis covers all single and multi-engine aircraft categories – business jets, turboprops and pistons – equating to over 300 aircraft-types. Coverage of jet-types used by commercial airlines is not comprehensive, but does capture, for example, Embraer Legacy (ERJ135) Bombardier 850 (CRJ200), A318 Elite, Airbus 319 and BBJ3 flights.

www.flyvictor.com

Jet aircraft activity is segmented by cabin/range capability: airline (bizliner), ultralong range (ULR), heavy, super mid-size, mid-size, super light, light, entry-level, and very light.

MWWPR (London) | [email protected] | +44(0)20 7046 6080

For further information please contact:

Aircraft use is measured by number of flight departures and the related number of flight hours. Analysis does not include over-flights. It does include arrival flights from all global International Civil Aviation Organisation (ICAO) regions into Europe.

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PRIVATE JET TRAVEL REPORT 2015