Perception vs Reality The Economic Contribution of Business Aviation Brian Humphries CBEIBAC/ICAO Dinner EBAA President and CEOMontréal 28 May 2009.

Perception vs RealityThe Economic Contribution of

Business Aviation

Brian Humphries CBE IBAC/ICAO DinnerEBAA President and CEO Montréal

28 May 2009

Why Europe as the model?• Faces all BusAv's Global Challenges in respect of access;

proportionate and appropriate regulation; and public image• Clear focus on safety• Global BusAv in a microcosm• Recently conducted study by PriceWaterhouseCoopers

provides authoritative economic impact assessment of BusAv on the European economy by a leading and well respected consultancy

• Europe represents 11% of global business aviation operations so when European economic impact is factored into the global economy, gross value added is substantial.

Take 4 Perspectives

• The False – some Press and Officials

• The True

o European Parliament and Commission

o The Economist

o The Air Traffic Service provider

The False

• BusAv is for fat cats

o Actually in Europe 80% of usage is by Corporations and

governments and <3% by high net worths

• BusAv is an unnecessary luxury

o Actually the industry is a major wealth and jobs creator

• BusAv competes with the airlines to benefit the few over the many

o Actually BusAv serves predominantly those city pairs poorly or not

served at all by the airlines

Value to the Business European Commission Perspective

“General and Business Aviation provides closely

tailored, flexible, door to door transportation for

individuals, enterprises and local communities,

increasing mobility of people, productivity of

businesses and regional cohesion .”

Communication from the Commission

An Agenda for Sustainable Future in General and Business Aviation

11 January 2008 COM (2007) 869 Final

Value to the Business European Parliament Perspective

“General and Business Aviation complement regular

air transport by commercial airlines and this

provides specific social and economic benefits such

as increasing the mobility of citizens, the

productivity of businesses and regional cohesion.

………..is of growing economic importance.” 

European Parliament resolution of 3 February 2009 on an Agenda for Sustainable Future in General and Business Aviation 2008/2134(INI)l

Business Aviation: Piloting the European Economy

• The Business Aviation sector contributed a total of €19.7bn

in annual gross value added (GVA) to the European

economy in 2007, accounting for approximately 0.2% of the

combined GDP of the European Union (EU), Norway and

Switzerland

• Business Aviation accounted for

more than 164k jobs across the

continent and generated combined

annual wages and salaries of

around €5.7bn.

• Total impact of Business

Aviation in France, UK &

Germany is €12.6bn, which

represents 64% of the total

industry GVA in Europe.

Safety and Security

• Top priorities for business aviation• IBAC leads the development of best practices for global

applicationo IS-BAO - Corporate operations have one of the best safety

records in the industryo New Safety Road Map setting the course for continuous

improvemento SMS toolkit now available to support operators in meeting

ICAO requirementso Security guidelines tailored to the specifics of BusAv

BusAv and the Environment• Europe has one of the youngest fleets in the world• Fly to task not schedules• Almost 8% of IFR traffic but less than 1% of emissions• Full and active participant in Single European Sky ATM Research

programme(SESAR) for long-term reduction in CO2

• Do not sell seats so tonne-kilometre not an appropriate PIo Value added rather than people carried vs. environmental

impact = sustainability• Prepared to FULLY offset emissions BUT

o Need proportionate Monitoring Reporting and Verification (MRV) rules

Business Aviation declined 3% in 2008

Flying where scheduled does not

Most of the traffic, most of the city-pairs

Everything but routine

From the Economic Heart

Recent Growth & OutlookA 15% decline

would take us back to

2005 levels.

Conclusion• BusAv is a vital tool not a luxury• BusAv is an additional travel option not in competition with the

airlines and predominantly serves city pairs least well served by the airlines

• BusAv is an economic enabler for national and regional economies

• BusAv creates Value, Jobs and Wages on a scale comparable with other major industries such as the telecom manufacturing industry

• BusAv is sustainable and at the very heart of economic activity • BusAv needs fair and equitable access to airspace and airports• BusAv is the Right Tool for Challenging Times