continued on page 32Avinode Sees Strong Charter Market in Europe
Charter information specialist Avinode says it has “continued
to see an ongoing improvement in the European market”
having finally turned the corner last year...
Oliver King, Avinode MD, said, “A year ago it felt like we had
come through an uncertain period. But there is no mistaking
now that we’re in a great period for growth in Europe, which
we’ve not seen for a number of years. The core markets
continue to grow. Even Sweden saw 8% growth last year,
although it’s a small market and not material on the wider
European stage.”
King said among those using Avinode there had been
growth of 13% YoY from 2016-2017. “There’s not many times
we’ve talked about double-digit growth. It’s been a great year.”
He added that previous years had seen a drop in activity in
Spain and Italy, but now “We’ve seen it come back, especially
at the lighter [aircraft] end.”
The size of chartered aircraft has remained “very stable”
after the shift toward lighter aircraft a few years ago (from
midsize), while the heavy end “remained almost untouched,”
King said, adding that the light end is “the most price-elastic
and also it’s the end that’s attracting the new customers."Article courtesy of Ian Sheppard and AIN
MIwww.avinode.com
2018 to be a Turning Point?
According to Flight Ascend Consultancy, this year may signal
that the market turning point has been passed...
Deliveries may have only increased by 1% in 2017, to 667
business jets, but the airframers have certainly come to terms with
the new dynamics – streamlining their product offerings and
bringing some genuinely exciting new types to market. At the
smaller end some 10% of all new deliveries came from market
entrants Honda and Cirrus, something that incumbents cannot
ignore.Light & Medium Jet Activity
The light segment saw a second year of falling deliveries, with
fewer shipments of the popular Embraer Phenom 300 and the
Cessna Citation CJ4. Embraer delivered the first Phenom 300E in
April: an upgraded version of the aircraft including a new cabin.
The light aircraft segment became more competitive with
delivery of the first Pilatus PC-24. More than 20 are expected to
be delivered in 2018, and Pilatus is reopening the orderbook after
taking more than 80 launch orders.
Midsize deliveries also saw a drop (of 9%). Among the most
recent introductions, the Citation Latitude was the only type to
increase with the Embraer Legacy 450 staying flat.The super-midsize category is one of the most competitive,
and there was a second year of falling deliveries in this segment,
too. Deliveries of the Bombardier Challenger 350 fell and the
Legacy 500 and Dassault Falcon 2000LXS/S also fell. Deliveries of
the Challenger 650 were flat, while Gulfstream G280 deliveries
increased. This segment will become further crowded with the
service entry of the Citation Longitude later in 2018.Long Range Activity
There was good news in the long-range sector, with a 4% increase
in deliveries, reversing two years of falls as oil prices impacted
demand for larger cabin, higher value machines.
The market-leading Gulfstream G650 increased (albeit offset
by fewer G450s and G550s deliveries), with the former ending
production in early 2018. Gulfstream is busy testing its new G500
and G600 program, with certification due this year.
There were mixed fortunes for the other aircraft manufacturers.
Bombardier delivered fewer of its Global family but is introducing
a new cabin for the 6000 as well as commencing deliveries of its
new Global 7500 – the longest range model available – in 2018.
Dassault increased its deliveries as the stretched Falcon 8X
ramped up and replaced development of the 5X with a slightly
larger 6X for 2022.
There is also industry speculation about a new Gulfstream
product launch to challenge the Global 7000.Looking Ahead
In its 2018 forecast, Flight Ascend Consultancy is predicting some
7,500 deliveries will be made over the next decade – valued at
$208bn (in 2018 dollars) and based on full-life base values.
The long-range category will continue to dominate both in
aircraft numbers (29%) and value (61%).MIwww.flightglobal.comBIZAV INTELLIGENCE MARKET INDICATORS
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