AvBuyer Magazine – August 2019

36 
 Vol 23 Issue 8 2019 
 AVBUYERMAGAZINE http://www.AVBUYER.com

JETNET >>KNOW MORE AVBUYER.com

2. ‘51,000 foot’ Perspective
   Moderator: Rollie Vincent, Summit Co-Chair
   Panelist:Ron Epstein, Managing Director, Aerospace &
   Defense, Bank of America Merrill Lynch; Don Pointer,
   Senior Director, Marketing & Communications, Dassault
   Falcon Jet; Dean Roberts, Market Analysis Executive –
   Business Aviation, Rolls-Royce North America.

What Were the Main Takeaways?

• There is plenty of potential to disrupt the business jet
  industry.


• In 1997 there were 11 different models. Today the
  number has increased to 20 Super Mid-size and larger
  business jet models.


• Fleet consolidation is needed. There are too many
  existing models.


• Supersonic business jets are coming.


• Urban mobility – eVTOLs are coming.


• Aviation is doing its part to reduce its carbon footprint.


• Improvement is needed in the low utilization conundrum.

3. Industry Advocacy
   Moderator:Paul Cardarelli, Summit Co-Chair
   Panelist:Ed Bolen, President & CEO, NBAA; Pete Bunce,
   President & CEO, GAMA; Athar Husain Khan, Secretary-
   General, EBAA.

What Were the Main Takeaways?

• Detailed flow diagrams were presented: ‘How to obtain
  FAA and EASA Type Certificates’.


• Business Jets currently in the certification process are:
  o Bombardier Global 6500
  o Dassault Falcon 6X
  o Gulfstream G600
  o Cessna Citation Longitude
  o An additional three turboprops, two helicopters and
  one tilt-rotor aircraft are in the certification process.


• GAMA highlighted how it established an Electric
  Propulsion & Innovation Committee (EPIC) in 2015 with
  11 member companies. In 2019 the list of member
  companies has grown to 80.

4. JETNET iQ State of the Market Insights and
   Forecast
   Presented by: Rollie Vincent & Paul Cardarelli,
   Summit Co-Chairs

What Were the Main Takeaways?

• Paul Cardarelli showed eight slides from the business jet
  industry analysis, among which was highlighted:
  o GDP in the US and Europe made up 74% of the
  business jet fleet.
  o The top 20 BizAv markets (by country) showed only
  four countries with 3% GDP growth or higher.
  o The US has high profits with low business aircraft
  utilization.
  o New order backlogs are finally rebounding.
  o Book-to-Bill Ratios support higher 2019 deliveries.


• Rollie Vincent showed 12 slides that covered the JETNET
  iQ Survey Q & A. Among the takeaways were:
  o Just over half of respondents (55%) believe Business
  Aviation is past the low point of recovery from the
  Great Recession.

o As many as 71% of the survey respondents agree a

Supersonic Business Jet will enter the market in the

future.

o A majority (85%) of the respondents concur that it is

safe to fly in a business jet older than 10 years.

o It is widely believed that the emerging Millennial

generation will have different needs.

o Two slides showed the Business Jet forecast between

2019 to 2028 which included Supersonic Business Jets

and Personal Jets. It showed 11 different market

segments with demand for 7,803 units.

5. Topic: Wall Street Perspectives
   Moderator:Rollie Vincent, Summit Co-Chair
   Panelist:Noah Poponak, Senior Equity Research Analyst,
   Aerospace and Defense, Goldman Sachs; Seth Selfman,
   Aerospace & Defense Analyst, J.P. Morgan Securities,
   LLC; David Strauss, Managing Director, U.S. Equity
   Research – Aerospace & Defense, Barclays Capital Inc.

What Were the Main Takeaways?

• A chart was shown illustrating that Over-Supply and
  Demand have been very much out of balance since 2009.
  Currently between 1,000 and 1,400 too many jets have
  been produced. Small and Mid-size Jets are the worst
  segments – and since 2015 Large Cabin Jets are showing
  an oversupply of 225 aircraft.


• Replacement and low aircraft utilization are concerns
  o Supply: Pre-owned has the biggest challenge. Current
  new backlog/production are low.
  o Demand:Flight hours and aircraft utilization are soft;
  the shared aircraft economy is changing; outside the
  US and Europe is under-penetrated.


• Investors have seen little evidence of robust business jet
  demand.


• New products drive growth.

Next Month...

We’ll continue our review next month with all the main

takeaways from the other five topics covered at the JETNET

iQ Summit.

MI More information from http://www.jetnet.com ❙

Rollie Vincent & Paul Cardarelli

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