The global business jet market forecast predicts a promising future for high profile aviation in the years ahead. Customer is driven by the value proposition provided by players in the global business jet market. These are cost effective and a safe mode of travel. The ability to conduct business privately during flights, on-demand flight scheduling, reduced travel time and direct access to company sites are major benefits of these aircrafts.
Globalization of trade owing to expansion from interregional partners to globally connected economies have contributed to the growth in business jet markets. Emerging economies such as China and India in addition to other developing nations are expected to propel the demand for business jets in the foreseeable future on account of converging adoptions towards mature market levels.
Employee time saving is a fundamental benefit of aviation. Closely linked with time savings is improved productivity, that includes being able to complete essential or strategic business tasks faster, thereby reducing unit costs of sales, optimizing time, and influencing shareholder value through key drivers such as asset efficiency revenue growth and profit growth. An employee’s time has intrinsic value on account of increase in expertise and decision-making responsibility. Considering the value of knowledge integration and the rapid deployment of specialist teams in improving an organization’s efficiency is expected to emerge as a key benefit derived from operating aircraft.
Technological advances and introduction of new models in the global business jets market is expected to trigger the growth that provide consumers with several alternatives to full aircraft ownerships that extends the accessibility available to users.
One of the key trends in the upcoming market is the replacement of old generation business jets with new aircraft models. The market is segmented into two major segments that includes branded charters which includes air taxis and second is fractional ownership. There has been substantial growth in on-demand air travel and business jets associated with air taxi fleets and charter. Increase in the ownership of business jets can be attributed to easy financing facilities coupled with low interest rates.
Additionally, the market dynamics are likely to witness major transformation with the development of supersonic business jets owing to a number of industry OEMs, proactively pursuing R&D towards developing of a wide range of supersonic flight technologies while meeting regulatory requirements simultaneously.
The global market which was halved during the financial crisis is expected to witness an increase owing to rising demand from large players from Middle-East, North America and Asia with the introduction of new modes in business jet designs. The downside of Chinese economy with corruption and new government policies have led to economic slowdown. However, there is a scope for increase in demand in China which is expected to deliver over 2,500 aircrafts in the next seven years
Although, currently, there is restricted growth, the strong value proposition for business jets remains unchallenged. In the long term perspective, global market is expected to witness strong growth owing to continuous wealth creation in matured regions and increasing penetration of these aircrafts in emerging economies.
In 2014, the industry recovered on account of the strengthening U.S. economy. The private jet activity is three times larger in North America than Europe. Key drivers that led to increase in the demand for North American business planes orders and deliveries are a stable stock market, sustainable consumer spending and solid domestic investment. However, orders and deliveries lagged in other regions such as Europe where the GDP growth was sluggish as a result of challenges which held back a broader recovery in the world economy. The current European crisis on account of economic slowdown and political tension has affected the global business jet market. Further, environmental regulations restricting the operations of old jets that do not meet the emission standards and noise criteria have remained a challenge in the market.
In the Middle East, business jet aviation market is expected to witness promising results over the forecast period. There is a need for business jets owing to long distances between cities and difficult ground transportation. Business aviation industry in India is expected to witness a growth that is three times that of the existing and become the third largest aviation industry in the forecast period.
Key players are Bombardier Inc. (Canada), Dassault Aviation S.A. (France), Cessna Aircraft Company (U.S.),Gulfstream Aerospace Corporation (U.S.)and Embraer S.A. (Brazil).
Bombardier is a major player in the global transportation industry with products ranging from high speed trains, commercial aircrafts and public transport solutions. The company is headquartered in Montreal, Canada and deals in two primary segments including aerospace and transportation. The aerospace segment comprises business, commercial and amphibious aircrafts along with aerostructures & engineering services, specialized aircraft solutions and aircrafts services and training. Learjet, Challenger and Global are trade names of Bombardier’s business jets which are classified according to their size, i.e. small, medium and large respectively.
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