NEWS IN THE OLD CONTINENT
Europe has the world’s business aviation second largest fleet, with nearly 2,700 jets, only behind the United States. Among the turboprops, the old continent holds the third global position, with 900 units. Over the last decade, the Europeans adsorbed 20 percent of the deliveries of business jets and 13 percent of the world’s turboprops, which helps to understand the importance of EBACE 2018.
After the chain effects started in 2008 in the global market, Europe plunged into its most serious financial and humanitarian crisis since the end of World War Two. Business demand significantly dropped, impacting the purchase of new aircrafts. In 2008, in the pre-crisis, the European market acquired 339 business jets directly from the manufacturers. Nine years later, there were only 121 aircrafts. The worst scenario happened with the turboprops, considered fundamental for several routes in Europe. There were 37 new aircrafts delivered in 2017, as compared with 76 in 2008.
For many people, the fact of several manufacturers having shown at first hand in EBACE this year their launches, is a sign of confidence in the resurgence of the European market, which over the past decade, sustained itself with a good aircraft base installed thanks to crises in the rest of the world, which allowed the purchase of low used aircrafts and very low historical values.
One of the obstacles for the manufacturers was just the supply of used aircrafts. Contrarily to markets like the Asian and Arab ones where the buyer prefers new models, the European historically has no restrictions to used products with prices below average.
Upon a constant growth of GDP over the pastUnion recording an increase of 2.4 percent in 2017, business demand considerably increased, demanding the return of the use of private-owned aircrafts. Paradoxically, even in a period marked by business reduction in Europe, according to Wealth-X, the continent witnessed aan increase of 9 percent in the number of billionaires, only between 2016 and 2017. Demonstrating the segment growth’s potential. However, contrarily to markets such as Middle East, where new billionaire generations exaggeratedly consume, the European market witnesses the ascension of the so called millennials, youngsters up to 38 years of age, that became rich and have concerns and anxieties different than those of their parents and grandparents. Concern with costs is at the same level of environmental impact, social responsibility and real need of every item on board.
