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European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre


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European Business Aviation Market Analysis 2016 with a focus on France and the marketing of the new disruptive marketplaces for private flights (PrivateFly & Victor).

Analysis and Suggestions which are my own.
© 2016, Emeric Delalandre, ALL RIGHTS RESERVED.

Published in: Travel
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European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

  1. 1. EUROPEAN BUSINESS AVIATION MARKET Emeric Delalandre / +33 (0)688626339 March 11th 2016
  2. 2. $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
  3. 3. + $20 billion / year Business Aviation generates to the European Economy + 800 operators and around 4,000 business aircrafts (turboprops & jets) + 160,000 people Business Aviation employs thousands of Europeans Source: Business Aviation State of the Industry 2014, EBAA
  4. 4. Popular Private Jet Routes 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
  5. 5. Business Jet European Market Segmentation Source: Market Forecast, 2015-2024, Bombardier Aircraft
  6. 6. International Business Jet Market Shares ▪ Performing manufacturers → Bombardier → Gulfstream ▪ Future business drivers Source: 2014 General Aviation Statistical Databook & 2015 Industry Outlook, GAMA
  7. 7. France Business Aviation Market Insights 11% of the french aviation market in movements is a result of private flights. 150+ private flights per day on average with most of them from and to Paris le Bourget has 65 daily departures of private flights on average. Nice : 40, Cannes: 14 +80 Business Aviation Operators Unijet, Aerovision, Dassault Falcon Service. +310 Aircrafts is a local private jet service. €2,400/hour RT €4,000/hour OW Sources: Eurocontrol, Amstat,, EBAA Cessna Citation Mustang 44% 27% 13% 15% 1% 84%
  8. 8. THE MEANS OF BOOKING A PRIVATE FLIGHT CHALLENGES Process savings - connecting quickly the customer and the operators Overcapacity - a €1.9 billion market Empty 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
  9. 9. THE COST OF A PRIVATE JET CHALLENGES Handling costs at the Airport Fuel 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
  10. 10. New disruptive accessibility models Cash commitment Price comparison Contract length Full Ownership Huge Initial Investment + Management Fees + Flight Costs Fixed rates Aircraft lifetime Fractional Ownership Large Initial Investment + Management Fees + Flight Costs Fixed 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 aircraft Quicker, more flexible, more value-oriented more transparent Source: PrivateFly
  11. 11. The private jet luxury industry TRANSPORTATION EXPERIENTIAL Automobiles, Marine, Aircraft, Recreational Vehicles, Professional Services Hospitality, Home, Travel, Activities, Sports, Real Estate, Personal Health Management PRIVATE AVIATION CHARACTERISTICS OF LUXURY RARITY EXCELLENCE EXPENSIVENESS TIMELESSNESS HONESTY TAILORED PLEASURABLE EXPERIENCE Sources: Beau Fraser, Luxury Daily (2014) & Shock of the New Chic, The Boston Consulting Group (2014)
  12. 12. THE PRIVATE JET USERS WHO ? Governments Corporations Wealthy Individuals Special Missions FOR WHAT ? Excellence Flexibility Convenience Time Savings Cost Savings Deal facilitation Privacy Stress Savings Perceived Safety WHY ? Business Work Tourism Experience FLYING PRIVATE IS A LUXURY VALUE FOR USERS PRICE SPEED SERVICE
  13. 13. PrivateFly and Victor are multi platform online marketplaces for private jet charter. Search for a flight The customer enter an itinerary and its requirements for a private flight. Compare quotes The technology provides to the customer the different options available. Book a flight The customer compare and book a flight online or by interacting with a specialist.
  14. 14. Private Jet Marketplaces are a game-changer in a disruptive shared economy Technology tracking real-time location & availability optimized comparison instant quotes Network +7,000 accredited aircrafts international presence related partnerships Service full VIP experts available 24/7 consistent and relevant brand excellence as a luxury intermediary TECHNOLOGY IS CHANGING THE MARKET The business aviation is heavily brokered The business jet value is going to be more recognised BUSINESS MODEL DIFFERENTIATION
  16. 16. Simplification efforts on the offer Private Jet Activity ? Value for customer ? Contact ? For individuals or corporations ? Empty legs, Memberships or flights ?
  17. 17. Simplification efforts on the offer Focus on what really matters
  18. 18. Strategic partnerships in technology & travel
  19. 19. Marketing & Branding
  20. 20. Marketing & Branding Identity - Storytelling Why does What does What does exist ? aspire to achieve ? stand for ?
  21. 21. 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
  22. 22. Marketing & Branding Focus on what really matters
  23. 23. 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
  24. 24. Private Jet Marketplaces and Technology are disrupting the private jet industry Process innovation. Product innovation. PRICE SPEED SERVICE time performance 2016 product service
  25. 25. Thanks! You can reach me at : +33 (0)688626339 Need inspiration.. #ASKGARYYVEE Credits: Sources quoted on related slides