The business jet market in numbers The business jet market in numbers Published April 2013 (Third edition) Although Corporate Jet Investor has made every Corporate Jet Investor effort to ensure the accuracy of this report, neither it, Tranquil House or any contributor can accept any legal responsibility Old Reigate Road for consequences that may arise from errors or Betchworth omissions or any opinions or advice given. This is not RH3 7DR a substitute for professional advice on aircraft United Kingdom acquisitions, financing or transactions. T: +44 1737 844 383 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any W: www.corporatejetinvestor.com means, electronic or mechanical, including photocopy, recording or any information storage and E: [email protected] retrieval system, without prior permission in writing from the publisher. 2 Contents 1.0 Executive summary 4 2.0 About this report 5 2.1 About Corporate Jet Investor 6 3.0 The global business jet fleet 7 3.1 Owners and operators 7 3.2 The age of the global jet fleet 7 3.3 Geographic spread 8 4.0 Orders and deliveries 10 4.1 Deliveries by manufacturer 13 5.0 The pre-owned market 17 6.0 Aircraft utilisation and charter 19 6.1 The US 19 6.2 Europe 21 7.0 Market forecasts 22 7.1 Bombardier forecast 22 7.2 Honeywell forecast 22 7.3 JETNET Forecast 22 7.4 TEAL Group Forecast 22 7.5 FAA Business Traffic Forecast 222 7.6 Avinode traffic forecast 222 7.7 Combined fleet forecast 24 8.0 Safety and insurance 25 8.1 Accidents in the US 26 9.0 Miscellaneous data 27 9.1 Business jets and the environment 27 9.2 Terms people use 27 9.3 Trade show attendance 28 9.4 First business jets 29 9.5 Facts about manufacturers 29 10.0 Acknowledgements 290 11.0 Footnotes and references 30 3 1.0 Executive summary At the end of 2011 the global business jet fleet consisted of around 17,721 (Source Various) aircraft with an average age of 15.9 years (Source Bombardieri) More than 70% of the world’s fleet is based in North America (Source Ascend Onlineii) but this is changing and the market is becoming more global. The customer base is very diverse. In 2009 75% of US companies operate only one turbine-powered aircraft. In 1997, 37% had more than one in their fleet (Source: Harris Interactiveiii). Dassault, for example, has a fleet of 1,935 aircraft flown by 1,120 operatorsiv. Bombardier estimates that more than 85% of new business jet orders originate from existing owners. Some 672 business jets were delivered in 2012 down from 2011 when 696 were delivered and down from the high point of 990 in 2008 (Source: GAMAv). About 12% of global business jet fleet is traded every year, although is it dependent on the business jet cycle (Source: Amstatvi and JetNetvii). Honeywell says that the market peaked in 2009, with 15% of the total fleet for saleviii. 4 2.0 About this report Corporate Jet Investor’s Business Jet Market in Numbers is a collection of the most recent statistics and data available on business aviation. The report is a one-stop source of information to help you find the data you need as quickly as possible. Business Jet Market in Numbers uses a mixture of our own research combined with third party sources. We credit and acknowledge all sources with endnotes. If you feel any of the data is inaccurate or not properly credited please email Alex Andrews, assocaite publisher or Terry Spruce, news and aircraft editor, on [email protected] or [email protected] or call +44 1737 844 383. Please also email us if you are looking for data not covered in the report. If you want it, other members probably will too, so please let us find it for you. Please note that we update this report regularly. Make sure you have the most current edition by going to http://www.corporatejetinvestor.com/articles/downloads 5 2.1 About Corporate Jet Investor Corporate Jet Investor provides information, insight and intelligence on business jet and helicopter transactions. Our events bring the market together. Over 18,000 professionals use the site each month making it one of the most visited specialist websites in the industry. Our core membership includes: aircraft owners, corporate flight departments, flight departments, family offices, banks, funds, leasing companies, manufacturers, law firms, maintenance providers, consultants, aircraft operators and others in business aviation. More than one thousand people also subscribe to our weekly e-newsletter. Members use the site to identify opportunities, find potential customers, meet recommended professionals and analyse risk. The site includes data on different aircraft, a list of upcoming deliveries, an interactive business jet finance finder, listings of recommended lawyers, expert articles and the Official Guide to Aircraft Registration. Corporate Jet Investor also organises corporate jet and helicopter finance conferences and events around the world. Recent events have taken place in London, Beijing, Johannesburg and Hong Kong. We also organise specialist training courses focused on aircraft finance. So far in 2012, 100% of delegates to our events have said the events were either good or very good. We also manage the Corporate Jet Investor Awards which are chosen by a committee of aircraft manufacturers and leading brokers and are given to financial institutions and transactions. For the last three years, our events and website have helped members learn, make better decisions, build business strategies, save time, find the best transaction partners, identify risks and accelerate their careers. For a free trial and to find out how we can help you please contact: Maria Bernard Member and delegate manager [email protected] +44 1737 844 383 6 3.0 The global business jet fleet In 2011, the global business jet fleet consisted of either 15,200 aircraft (Source: Bombardier - which does not include airliners); 17,400 aircraft (Source: Ascendix) or 18,643 aircraft (Source: JetNetx). Amstatxi estimated that the global fleet consisted of 19,642 aircraft in October 2012. The growth of the global business jet fleet Year 1960 1970 1980 1990 2000 2010 2011 Global business jet fleet 15 1205 3,920 6,492 9,895 16,870 17,394 (Source: Ascend1) The composition of the global business jet fleet in October 2012 All business jets 19,642 Heavy jets 4,915 Medium jets 6,987 Light jets 7,740 (Source: Amstatxii) 3.1 Owners and operators In 2009, in the US, 75% of companies in possession aircraft operated only one turbine-powered aircraft. In 1997, 37% had more than one in their fleet (Source: Harris Interactivexiii) Dassault has a fleet of 1,935 aircraft flown by 1,120 operatorsxiv. Bombardier estimates that more than 85% of new business jet orders originate from existing owners. 3.2 The age of the global jet fleet In December 2012, the average age of the worldwide business jet fleet was 15.9 years, with 60% of the fleet at less than 15 years old (Source: Bombardierxv and JETNET2). Around 200 aircraft are more than 40 year’s old (Source: Bombardier). 7 Only 7% of all delivered business jets have been retired (Source: Bombardier). Light jets have the oldest average age (20.6 years) followed by mid-size jets (17.6 years) and small-mid-size jets (16.6 years). 3.3 Geographic spread The US dominates the business jet market with more than 65% of the world’s fleet. However, the fleet is getting more international –in 2000, the US counted for 75% (Source: Ascend Online). Top 15 business aviation fleets by country Country Number of business jets 1 USA 11082 2 Mexico 695 3 Brazil 638 4 Canada 486 5 Germany 410 6 United Kingdom 408 7 Austria 239 8 Portugal 172 9 Switzerland 172 10 France 161 11 South Africa 161 12 Venezuela 156 13 Australia 155 14 Italy 139 15 Argentina 132 (Source: Ascend Online) 8 Business jets to population Country Number of people to every business jet US 27,000 Canada 70,000 Mexico 166,000 Germany 200,000 Brazil 300,000 Malaysia 1.8 million Nigeria 3.7 million India 9.1 million China 11.8 million (Source: Ascend/Corporate Jet Investor) 9 4.0 Orders and deliveries Bombardier estimates there were net orders for 180 business jets in 2010 and 423 in 2011. In 2008, fractional operators and branded charter operator orders represented between 20%-30% of all orders. However, many of these were cancelled in 2009. Fractional operators are expected to account for approximately 10% of business jet deliveries over the next 20 years (Source: Bombardier). (Source: Bombardier) 10