EUROPEAN BUSINESS AVIATION MARKET Emeric Delalandre [email protected] / +33 (0)688626339 March 11th 2016
EUROPEAN BUSINESS AVIATION MARKETEmeric [email protected] / +33 (0)688626339
March 11th 2016
$18.6 trillionEuropean Business Aviation Industry Value in 2014 (2nd largest market after North America)
+ 2,700 private jetsEuropean Business Aviation Fleet in 2014 (2nd largest fleet after North America: +12,000 aircrafts)
€ 3,950 / hourEuropean Hourly Rate in 2014 with a Cessna Citation XL(S) (€ 3,440 / hour in North America)
Sources: PrivateFly & Market Forecast, 2015-2024, Bombardier Aircraft
+ $20 billion / yearBusiness Aviation generates to the European Economy
+ 800 operatorsand around 4,000 business aircrafts (turboprops & jets)
+ 160,000 peopleBusiness Aviation employs thousands of Europeans
Source: Business Aviation State of the Industry 2014, EBAA
Popular Private JetRoutes in Europe
Paris - Le Bourget
Geneve - Cointrin
Nice
London - Luton & Farnborough
Moscow - Vnukovo
Zurich
Milano - Linate
Roma - Ciampino
Wien - Schwechat Donetsk
Kiev - Zhuliany
▪ Milan Linate - Roma Ciampino
→ 130 RT/month - 1h
▪ Paris Le Bourget - Geneva
→ 120 RT/month - 50min
▪ Geneva - Nice
→ 70 RT/month - 40min
▪ Paris Le Bourget - Nice
→ 67 RT/month - 1h20min
▪ Moskow Vnukovo - Nice
→ 55 RT/month - 3h30min
Source: PrivateFly
Business Jet EuropeanMarket Segmentation
Source: Market Forecast, 2015-2024, Bombardier Aircraft
International Business Jet Market Shares
▪ Performing manufacturers
→ Bombardier
→ Gulfstream
▪ Future business drivers
Source: 2014 General Aviation Statistical Databook & 2015 Industry Outlook, GAMA
France Business Aviation Market Insights11% of the french aviation marketin movements is a result of private flights.
150+ private flights per day on averagewith most of them from and to
Paris le Bourget has 65 daily departuresof private flights on average.Nice : 40, Cannes: 14
+80 Business Aviation OperatorsUnijet, Aerovision, Dassault Falcon Service.
+310 Aircraftsis a local private jet service.€2,400/hour RT€4,000/hour OW
Sources: Eurocontrol, Amstat, Aircharterguide.com, EBAA
Cessna Citation Mustang
44% 27% 13% 15% 1%
84%
THE MEANS OF BOOKINGA PRIVATE FLIGHT
CHALLENGES
Process savings - connecting quickly the customer and the operators
Overcapacity - a €1.9 billion marketEmpty Legs - a €1.65 billion market
Source: Business Aviation State of the Industry 2014, EBAA
Final User Broker 1
Broker 2
Broker 3
Operator 1
Operator 2
Operator 3
Personal Assistant
THE COST OF APRIVATE JET
CHALLENGES
Handling costs at the AirportFuel costs
Airfield costs
Source: Quarterly Business Aviation Market Indicators: Q4-2015, EBAA
100%
39%25% 28%
5% 3%
Total operational
costs
Handling costs at the
Airports
Fuel costs Airfield costs
Airfield passengers
fees
Passengers Taxes
New disruptive accessibility models
Cash commitment
Price comparison
Contract length
Full OwnershipHuge Initial Investment + Management Fees +
Flight CostsFixed rates Aircraft lifetime
Fractional Ownership
Large Initial Investment + Management Fees +
Flight CostsFixed rates 2 or 3 years
Jet Card Contract costs Fixed rates 1 year
Charter Pay as you go Fixed rates No contract
Comparative Marketplaces
Pay as you go Lowest Market rates No contract
Connecting customers with available aircraftQuicker, more flexible, more value-oriented more transparent Source: PrivateFly
The private jetluxury industry
TRANSPORTATION EXPERIENTIAL
Automobiles, Marine, Aircraft, Recreational Vehicles, Professional Services
Hospitality, Home, Travel, Activities, Sports, Real Estate, Personal Health Management
PRIVATE AVIATION
CHARACTERISTICS OF LUXURYRARITY EXCELLENCE EXPENSIVENESS TIMELESSNESS
HONESTY TAILORED PLEASURABLE EXPERIENCE Sources: Beau Fraser, Luxury Daily (2014) & Shock of the New Chic, The Boston Consulting Group (2014)
THE PRIVATE JET USERS
WHO ?GovernmentsCorporations
Wealthy IndividualsSpecial Missions
FOR WHAT ?Excellence Flexibility Convenience Time Savings Cost Savings
Deal facilitation Privacy Stress Savings Perceived Safety
WHY ?Business
WorkTourism
Experience
FLYING PRIVATE IS ALUXURY
VALUE FOR USERSPRICE SPEED SERVICE
PrivateFly and Victor are multi platform online marketplaces for private jet charter.
Search for a flightThe customer enter an itinerary
and its requirements for a private flight.
Compare quotesThe technology provides to the customer the different options
available.
Book a flightThe customer compare and
book a flight online or by interacting with a specialist.
Private Jet Marketplaces are a game-changer in a disruptive shared economy
Technologytracking real-time location & availabilityoptimized comparison instant quotes
Network+7,000 accredited aircraftsinternational presencerelated partnerships
Servicefull VIP experts available 24/7consistent and relevant brand excellence as a luxury intermediary
TECHNOLOGY IS CHANGING THE MARKETThe business aviation is heavily brokered
The business jet value is going to be more recognised
BUSINESS MODEL DIFFERENTIATION
DEVELOPMENT OPPORTUNITIES
➔ SIMPLIFICATION EFFORTS ON THE OFFER
➔ STRATEGIC PARTNERSHIPS IN TECHNOLOGY & TRAVEL
➔ MARKETING & BRANDING
➔ INTERNATIONAL EXPANSION
➔ 360° EXPERIENTIAL LUXURY TRANSPORTATION OFFER
ShortTerm
MediumTerm
Simplification efforts on the offer
Private Jet Activity ?
Value for customer ?
Contact ?
For individuals or corporations ?
Empty legs, Memberships or flights ?
Simplification efforts on the offer
Focus on what really matters
Strategic partnerships in technology & travel
Marketing & Branding
Marketing & BrandingIdentity - Storytelling
Why does What does What does
exist ?aspire to achieve ? stand for ?
Marketing & Branding
Focus on what really matters
PRICE.SPEED.SERVICE.Not only for the users. Think Stakeholders.
One color.One font.One logo, app & others.
Luxury
Marketing & Branding
Focus on what really matters
Future outlook. PRICE SPEED SERVICE
Growth of the global business aviation driven by innovation and a recovery of the global economy
Consolidations of the aircraft manufacturers, private jet brokers and operators
Competition on the ability to understand the customer behavior changes
Private Jet Marketplaces and Technology are disrupting the private jet industry
Process innovation.
Product innovation.
PRICE SPEED SERVICE
time
performance
2016
product
service
Thanks!You can reach me at :
[email protected] +33 (0)688626339
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