BUSINESS AVIATION
QUARTERLY INSIGHT EUROPE
Q3- 2014 © European Organisation for the Safety of Air Navigation (EUROCONTROL) 2013 © 2013 by WINGXAdvance / Actionable Market Intelligence for Business Aviation –exclusive edition for EBAA
QUARTERLY INSIGHT EUROPE BUSINESS AVIATION
This publication has been made in collaboration with WINGX Advance. WINGX Advance is a leading provider of market intelligence on the global Business Aviation market.
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© European Organisation for the Safety of Air Navigation (EUROCONTROL) 2013 © 2013 by WINGX Advance / Actionable Market Intelligence for Business Aviation –exclusive edition for EBAA
DEPARTURES (DAIO) REPORT BUSINESS AVIATION
Departures (DAIO) Report Total Flights Departures (EU 28) 9.000
DEPARTURES
8.000 7.000 6.000 5.000 4.000 3.000 2.000 1.000 0 2010
2011
2012
© European Organisation for the Safety of Air Navigation (EUROCONTROL) 2013 © 2013 by WINGX Advance / Actionable Market Intelligence for Business Aviation –exclusive edition for EBAA
2013
2014
EUROPEAN BUSINESS AVIATION DEPARTURE GROWTH Flight activity fell 1.7% in Q3 2014, repeating Q2´s YOY fall. The UK was the bright spot, up 5.7%. France and Spain also positive. Central and Eastern Europe declined, activity in Ukraine collapsed, and Russia was -18%.
Total Europe: -1,7% Q3-2014 vs. Q3-2013 FI 0,3%
-1,3%
IS
-0,4% NO
RU -18,2%
EE -9,2% -6,1%
LA 8,6%
SE
LT -4,4%
-0,2% DK
-4,4%
-2,9%
BY -5,8%
5,7%
IE UK
-2,8% BE
8,8%
D
NL
PL
UA
LU
4,9%
CZ
0,3%
A CH
0,1%
-1,9%
-15,0%
HG -1,0%
0,7% 1,1%
RO
RS
HR
XY + 1,2
XY
MD
-7,0%
I
-1,2
-13,0% SA
-2,8%
F
%
-52,3%
-2,1%
-4,7% BA
-4,2%
2,1%
BG TR
2,1%
PT -4,0%
GR
ES
CY
MA
Note: Only Private and Charter Flights are considered, Training flights are excluded © European Organisation for the Safety of Air Navigation (EUROCONTROL) 2013 © 2013 by WINGX Advance / Actionable Market Intelligence for Business Aviation –exclusive edition for EBAA
-4,2%
10,1%
19,3%
6,9%
ACTIVITY BY AIRCRAFT CATEGORY There were small gains in business turboprop activity in Q3, but the business jet fleet, which contributed 71% of overall activity, fell 2.8%, the equivalent of 3,779 fewer flights than in Q3 2013.
Market Share Q3 2014
Total Departures Q3-2014
Business Jet
70.7%
134.961
Business Turboprop
29.212
15.3%
Business Piston
26.694
14.0%
Total Europe
190.867
Note: Only Private and Charter Flights are considered, Training flights are excluded © European Organisation for the Safety of Air Navigation (EUROCONTROL) 2013 © 2013 by WINGX Advance / Actionable Market Intelligence for Business Aviation –exclusive edition for EBAA
Q3-14 vs. Q3-13
-2,8% 2,7% -0,6% 100.0%
-1,7%
CHARTER FLIGHT HOURS AND CHARTER PRICING The stand out gain in activity was in the ULR jet segment, 18% up, reflected in the 7.5% price increase. The same demand-price link is evident in the VLJ segment. MSJs continued to fly less, with prices deflating.
Avg. Price per hour (in €)
Total Charter Hours Q3 2014 Bizliner* Ultra Long Range
6.776
19.750
15.481
Heavy jet Super midsize jet
Very Light jet Turboprop**
Piston
7.389
21.774
7.285
26.639 3.932 8.563
1.678 Ø 14.557
-9,6% 4,4% -1,5%
-4,4%
5,3%
-1,2% 0,8%
4.681
1,3% 1,0% -1,6%
Ø 8.408
Note: • Price references (all inclusive ex de-icing) provided by PrivateFly (www.PrivateFly.com) • Only O&Ds considered with Origin Europe and Destination Europe / World Wide • * only Airbus A318 Elite, A319 and BBJ3 are considered. • ** only 2 engine aircraft are considered
© 2013 by WINGX Advance / Actionable Market Intelligence for Business Aviation –exclusive edition for EBAA
2,5%
-0,6% 6,4%
6,5%
4.107
© European Organisation for the Safety of Air Navigation (EUROCONTROL) 2013
2,1%
1,0%
5.701
2.837
7,5%
-3,7%
4.129
12.861
YOY growth Price per hour
17,8%
10.265
18.649
Light Jet Entry Level jet
11.678
11.477
Super Light jet
-40,9%
14.670
32.293
Midsize jet
YOY: Charter Charter hours
-2,5% 7,9%
ESTIMATED EMPTY LEG DEPARTURES The overall estimate of 38% empty leg activity is slightly lower than Q2´s 40%. The midsize and light jet segments have the higher ratios, although these declined (green) in Q3. The in-demand VLJ, TP, Piston segments increased their EL ratios.
Total empty legs Q3-2014
Bizliner* Ultra Long Range Heavy Jet
9.721 4.339
Midsize Jet
5.175
Very Light Jet
Piston**
35.8% 42.7%
11.725
43.3%
2.726
45.7%
4.041
Turboprop**
12.017
41.6% 62,2%
37,8%
41.1%
8.973 Ø 6.564
-670
39.3%
7.904
Light Jet Entry Level Jet
33.8%
33.6%
Pax occupied
Empty
Notes: • Only O&Ds considered with Origin Europe and Destination Europe / World Wide • * only Airbus A318 Elite , Airbus A319, and BBJ3 are considered • ** only 2 engine aircraft are considered • Analysis inferred from sector duration analysis per aircraft segment © European Organisation for the Safety of Air Navigation (EUROCONTROL) 2013 © 2013 by WINGX Advance / Actionable Market Intelligence for Business Aviation –exclusive edition for EBAA
-38,2% 468
32.1%
5.242
Super Midsize
Super Light Jet
-210
10.9%
340
YOY
Green = reduction Red = Increase
% of total empty legs within segment
9,8% -6,4%
-49
-1,1%
-41
-0,8%
-294
-3,6%
-61
-0,5%
-279
-9,3%
145 519 128
3,7% 4,5% 1,4%
DISTRIBUTION OF FLIGHT DURATION The majority of flights in Q3 were max 1.5h (close to Q214 62%). This activity was stable YOY. The declines came in the 1.5-3h sectors, and particularly in the 3-6h segments. The longest sector flights increased, reflecting ULR jet demand.
Total departures Q3-2014
8,5% 2,1%
max. 1.5 h
Q3-2014 vs. Q3-2013
115.583
1.5h to 3h
54.993
-0,8% -2,8%
28,8% 60,6%
3h to 6h more than 6h
max. 1.5 h
3h to 6h
1.5h to 3h
more than 6h
16.273 4.018
Note: Only Private and Charter Flights are considered © European Organisation for the Safety of Air Navigation (EUROCONTROL) 2013 © 2013 by WINGX Advance / Actionable Market Intelligence for Business Aviation –exclusive edition for EBAA
-7,4% 14,0%
TOP 20 AIRPORT DEPARTURES The market decline in Q3 was mirrored in declines at Geneva, Zurich, Mandelieu, Vienna. But several of the busiest airports saw substantial YOY growth in Q3: Le Bourget, Luton, Farnborough. Busiest airport Nice was stable YOY.
Total departures Top 20 Airports (Q3-2014) NICE COTE D’AZUR LE BOURGET GENEVA LUTON VNUKOVO FARNBOROUGH OLBIA COSTA SMERALDA ZURICH IBIZA MANDELIEU LINATE CIAMPINO PALMA DE MALLORCA VIENNA SCHWECHAT BIGGIN HILL MUNCHEN SALZBURG - W.A. MOZART ELEFTHERIOS VENIZELOS BARAJAS STUTTGART
YOY growth (Q3-14 vs. Q3-13) 6.282 6.067 4.298
-0.1% 6.3% -5.2%
3.562 3.391 2.921 2.816 2.668
11.3% -0.1% 6.6% -0.1% -4.1% 11.3%
2.614 2.490 2.476
-1.8% 2.0% 1.5% 1.3%
1.901 1.871 1.849 1.685 1.555 1.398 1.398 1.398 1.372
Note: Only Private and Charter Flights are considered © European Organisation for the Safety of Air Navigation (EUROCONTROL) 2013 © 2013 by WINGX Advance / Actionable Market Intelligence for Business Aviation –exclusive edition for EBAA
-5.6% 5.8% -5.1% -1.8% 8.5% 7.1% 4.9%
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© European Organisation for the Safety of Air Navigation (EUROCONTROL) 2013 © 2013 by WINGX Advance / Actionable Market Intelligence for Business Aviation –exclusive edition for EBAA
