The state of the business jet market 2014
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The document discusses factors driving the business jet and VIP helicopter market, which remains in a downturn. Key factors influencing the market include wealth creation among ultra-high net worth individuals, new aircraft models from manufacturers, demand from emerging markets in Asia and growth in the pre-owned aircraft market. Political and economic instability in some regions continue to impact industry confidence levels. The recovery of the pre-owned aircraft market and any signs of improving global economic conditions will be important for sustaining the ongoing market recovery.
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The state of the business jet market 2014
- 2. The state of the market What drives business jet and VIP helicopter sales? Why are we still in a downturn? 2 of 60
- 3. 1400 1200 1000 800 600 400 200 0 2008 2009 2010 2011 3 of 60 Source: GAMA and Corporate Jet Investor forecast 2012 2013
- 4. 1400 1200 1000 800 600 400 200 0 4 of 60 Source: GAMA and Corporate Jet Investor forecast
- 5. 5 of 60 Source: Bombardier estimates
- 10. 1600 1400 1200 1000 800 600 400 200 0 2001 2002 2003 2004 10 of 60 Source: Forbes Rich List 2005 2006 2007 2008 2009 2010 2011 2012 2013
- 11. 2013: 199,235 ultra high net worth individuals (UHNWI) with a net worth of $30 million - combined wealth of $27.8 trillion 2012: 187,380 UHNWI with a combined wealth of $25.7 trillion There are 2,170 billionaires in the world with a total net worth of $6.5 trillion. Source: Wealth X 11 of 60
- 12. Net worth of $138 million 58 years old Male (88%) Married (95%) Self made (70%) Most likely to have worked in finance, banking, investment or insurance (20%), industry (6.3%), manufacturing conglomerate (5.5%) Has a degree (87%) Source: Wealth X 12 of 60
- 14. 2013: Falcon 2000S, Learjet 70, Learjet 75, New Citation X, Eclipse 550 2014: Challenger 350, Falcon 2000LXS, Honda Jet, Learjet 85, Legacy 500, New Citation Sovereign 2015: Citation Latitude, Legacy 450 2016: Global 7000 2017: Citation Longitude, Global 8000, PC-24 14 of 60 Source: Corporate Jet Investor
- 16. 18 16 14 12 $ billion 10 8 6 4 2 0 Jan-07 Jan-08 16 Source: Textron of 60 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13
- 17. 25 $ billion 20 15 10 5 0 2007 2008 2009 17 of 60 Source: General Dynamics 2010 2011 2012 2013
- 19. 19 of 60 Source: Corporate Jet Investor
- 21. 21 of 60
- 22. 22 of 60
- 23. 300 250 200 150 100 50 0 2007 2008 2009 2010 Hong Kong 23 Source: Embraer of 60 China 2011 2012
- 24. • China • India • Thailand • Malaysia • Indonesia • And the Philippines 24 of 60 Source: 2011 UVTripPlanner
- 26. 26 of 60
- 30. 2008 to 2013 30 of 60 2003 to 2007 1998 to 2002 1997 & Older
- 33. 33 of 60
- 36. 2,565 Average time to sell a jet: business jets for sale 509 days 36 of 60 Source: Amstat, September 2013
- 37. 37 of 60
- 38. As % of Total For Sale / Lease 38 2008 to 2013 2003 to 2007 1998 to 2002 As % of Active Fleet 1997 & Older Source: AMSTAT www.amstatcorp.com; Asset Insight research www.assetinsightinc.com of 60 September 2013
- 39. Large Jets Model Falcon 2000LX Boeing BBJ Global XRS GV GIV-SP (MSG3) CL-601-3R Challenger 601-1A G-III ETP Ratio 4.0% 8.7% 12.6% 37.8% 44.9% 46.9% 152.6% 253.1% Medium Jets Model ETP Ratio Citation X 9.6% Challenger 300 14.2% G-200 16.1% Hawker 800XP 25.5% Hawker Beechjet 400A 58.7% Learjet 60 69.4% Learjet 55 73.3% Hawker Beechjet 400 87.4% Small Jets Model Citation CJ1+ Phenom 100 Citation CJ2 Premier 1 Learjet 31 Citation II Citation VI Learjet 35A Aircraft with ETP Ratio >40% carry excessive Maintenance Financial Exposure vs. Ask Price 39 of 60 Source: Asset Insight research ww.assetinsightinc.com ETP Ratio 10.0% 12.7% 20.2% 35.2% 44.4% 76.6% 86.0% 100.2%
- 41. 41 Analysis: Dean Roberts, Rolls-Royce of 60
- 42. 42 of 60 Analysis: Dean Roberts, Rolls-Royce
- 43. 43 of 60
- 44. 44 of 60
- 45. Brazil riots Libya Attacks in Egypt North Korea/South Korea Fukishima Nuclear Plant Terrorism in Kenya Golden Dawn in Greece US government shutdown US debt ceiling 45 of 60
- 46. 46 of 60
- 47. Analysis: Dean Roberts, Rolls-Royce 1. 47 ‘Take this job and stuff it’ indicator (aka DoL job quits data) 2. Conference Board of 60
- 49. 49 of 60
- 50. 50 of 60
- 52. Alasdair Whyte Corporate Jet Investor +44 1737 844 383 awhyte@corpjetinvestor.com 52 of 60
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- In May, Dassault celebrated 50 years since the first flight of the Mystère 20. Since then 2,250 Falcons have been built. And 85% of these are still flying.It is not just Dassault that builds aircraft that last. Bombardier estimates that only 7% of the total business jet fleet has retired since the first jets in the late 1950s. 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).New analysis from Hawker Beechcraft Corporation has revealed that the average age of the European business aircraft fleet is 13-years-old and that more than one in six (17% or 788) of all business aircraft in Europe are at least 30 years old.Hawker Beechcraft estimates that some 296 aircraft in the European business aviation segment could be retired over the next five years. This equates to around 7% of the total European fleet and could lead to a significant increase in demand for new business aircraft as companies and individuals look to replace their ageing aircraft.Sweden has the oldest business aircraft of any fleet in Europe with an average age of 20 years and nearly one-third (32%) which are over 30-years-old. The youngest fleet by comparison is the Isle of Man with an average age of just six years and 7% over 30 years old. Portugal is the next youngest with an average age of just eight years and just 5% which are over 30 years old.The largest fleet is in Germany which is the base for 753 aircraft – 17% of the European total – with an average age of 14. Around 15% (114) of these are at least 30 years old.
- 12.7% of the fleet is for sale – which is actually the historical average18% in April 2009