Press Release

Issued by PrivateFly.

January 24, 2013

Over a third of business aviation professionals expect the global industry to grow in 2013, according to an industry survey* conducted by PrivateFly.com.

35 per cent of participants said they expected to see some return to growth, with 8 per cent predicting growth of over 5 per cent. Another 38 per cent predict a static year for the industry, with a less-optimistic 26 per cent expecting the recession to continue to bite for business aviation. One commented: "One has to be optimistic in our industry otherwise why continue to be involved".

The survey was conducted in December amongst an audience of global business aviation professionals. Findings included the following (an infographic summary is also available):

• Bombardier Aerospace is expected to be the aircraft manufacturer to show the most growth (39 per cent), followed by Embraer (31 per cent).

• Demand for ad hoc charter looks set to increase, with over half expecting this to be the most successful industry sub-sector this year – above fractional ownership, full ownership and block hours or card programs.

• Gulfstream's G650 is tipped to be the aircraft launch to make the biggest impact, followed by Embraer's Legacy 450.

• Price is considered by most to be the biggest buying priority for the private aviation customer in 2013, followed by safety and trust/professional service.

• Asia was tipped by most (65 per cent) as the region to show most growth in the year ahead, followed by the Middle East and South America.

• Europe looks set to be a shifting landscape for aircraft operators this year, with 60 per cent expecting to see most operator consolidation in this region.

• Despite the overall feeling of optimism, most in the industry (71 per cent) still see economic conditions as being the single biggest inhibitor to business in 2013.

• 74 per cent of respondents expected corporate use, rather than personal leisure flights, to fuel growth in the coming year.

Adam Twidell, ceo of PrivateFly.com commented: "The results of the research do indicate a growing optimism within the business aviation industry. No-one is predicting 2013 to be a boom year, but there is certainly a sense of a slow and steady recovery.

"When it comes to aircraft, it's clear that size will definitely matter. It was no surprise to see Gulfstream's G650 and long-range jet manufacturer Bombardier both tipped to have a strong year. The trend towards operators to focus on larger jets, which offer better operating margins and are well-suited towards the longer distances required by customers in emerging markets, has been apparent for some time.

"The importance of price as a key decision driver for the private jet traveller of 2013 is clear - as you would expect in these still-challenging market conditions. This is underlined by the expectation that ad hoc charter will outstrip other, less flexible and higher cost business models such as fractional ownership.

"At PrivateFly we recognise that the private jet customer of 2013 will be more demanding than ever – on both price and service. Businesses which can meet these demands, while still running a commercially-viable operation, will be the winners in this year's predicted recovery."

*Results are based on 389 global responses, generated from PrivateFly's industry database and through targeted social media.