With the BI team headed off to the Corporate Jet and Helicopter Finance Conference in London, UK this week we thought this would be a perfect time to recap some of the trends we’ve been seeing in the European charter market over the last few years.
Light jets have been losing market share across the board since 2008, while super mid and heavy jets have been gaining a greater foothold. This trend is in direct correlation with the business and pleasure travel markets, which have been shifting in popularity over the last three years. In essence, we have seen a substantial decrease in light jet popularity, which directly correlates with the collapsing economy and the resulting decrease in short-range business travel. On the other side of the scale, however, we’ve noticed a rather large uptick in demand for heavy and super midsize jets in correlation with both the incredible increase in holiday travel, as well as, the increased importance of markets in Russia, Asia and the Middle East.
During this period there has also been a marked shift from older aircraft to newer, faster, and more fuel-efficient aircraft. Two models in particular that have greatly increased in popularity are the Citation Mustang and the Legacy 600, which weighed in at 3 and 6 respectively in 2010 popularity rankings.
Another interesting shift in trend can be seen in trip value. After experiencing a near freefall in 2009 trip value appears to have tapered off, dropping only slightly in 2010. Look for further developments in 2011 as trip value responds to fleet optimization trends, as well as, increased demand across the board.
Trip length has also shown a noticeable decrease over the last three years as a result of new efficiency strategies on the part of many operators. As competition in the market increases fleet optimization tactics, such as floating fleets, and aggressive marketing campaigns for one-ways will continue to grow, driving trip length down even further.
Next up on The Node:BI ‘Trends in 2011, a look ahead’ Stay tuned…
