Page 60 - World Airnews News July 2020 Edition

NEWS DIGITAL

PRIVATE-JET INDUSTRY SEES A

FASTER REBOUND

The early numbers are encouraging. Last year, the industry delivered 809
Private flights are expected to be off 27% jets, according to the General Aviation
Private aviation is bouncing back more this month from a year earlier, and may Manufacturers Association, one of the best
quickly from the coronavirus pandemic recover to pre-virus levels within a year, years since the financial crisis.
said Travis Kuhn, vice president of market
than it did from the 2008 recession, a blow intelligence at Argus International, which
from which it never fully recovered. provides aviation data. That’s after flights OWNER OUTLOOK
The prospect for a V-shaped recovery plunged as much as 72% in April and 49% In 2020, deliveries of new aircraft are
in private-jet flights is underpinned by a in May. estimated to plunge 30% or more from
smaller base of customers who remained Meanwhile, the number of commercial last year. Plane makers, including General
loyal throughout a decade of corporate airline passengers plunged 90% in May, Dynamics Corporation Gulfstream and
cost cutting. Private-jet operators and according to the Transportation Safety Textron Cessna have throttled back
plane makers expect to win new flyers that Administration. Carriers already are warn- production. Bombardier’s business aircraft
need an alternative to pared-back commer- ing investors that demand may not return unit is cutting about 4% of its nearly
cial routes and want to avoid the higher risk to pre-virus levels for years. The airlines are 60,000 workforce. NetJets, a business-jet
of contracting the virus at crowded airports shrinking to survive, which means fewer operator owned by Berkshire Hathaway
and on airplanes. flights and options for travellers. Incorporated has cancelled orders and
The full impact of the current downturn Private planes are seen as the aviation Flexjet has postponed taking new aircraft.
was delayed by an initial flurry of private equivalent of driving a personal car instead The brutal contraction in the last
flights in February and early March as of taking the train. That provides a safety recession left a loyal customer core that
people rushed to relocate to ride out factor that could become a key selling will anchor a rebound, market experts said.
Covid-19 lockdowns. point, according to Eric Martel, CEO of That foundation will be bolstered by first-
Now the industry looks to recover faster small-jet maker Bombardier Inc. time charter flyers who convert to repeat
than commercial airlines as businesses “That’s a reflection we’re having, customers and, eventually, jet owners.
begin to reopen, said Mike Silvestro, chief whether Covid will clearly bring new “You’re going to see an entire new wave
executive officer of Flex jet, which provides needs,” Martel said in May. “Business of business jet flyers that make the jump
flight services with a fleet of 160 private planes become probably a safer solution from commercial to private aviation, and
planes. than commercial planes.” you’re going to see first-time jet buyers,”
This crisis “is completely opposite to what Private air travel, which hit bottom during said Neil Book, chief executive officer of
we’ve seen in the past,” Silvestro said. the last recession in 2009, never regained Jet Support Services Incorporation, which
“Private aviation is poised to actually be the boom levels of 2007. It was worse for has maintenance contracts for about 2,000
the beneficiary because of the inherent aircraft manufacturers. Annual deliveries of private planes. Q
nature of a safer, more familiar, cleaner new private planes dropped for five years Article courtesy: https://www.bnn-
environment.” from a peak of more than 1,300 in 2008. bloomberg.ca/

World Airnews | July Extra 2020
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