02Mar
Business aviation rise from the ashes
2021 was for most of us definitely remarkable year, which will remain in our memories for a long time. Very often inflected “C” word, gave rise to wild polarization of society in matters of politics, ethics and many others. But one thing every aviation interested person agrees on, is drastic impact of the pandemic striking this industry.
However, this crisis is specific in terms of market behavior. Driven by health concerns, visible division between private and corporate flying occurred. While business-aircraft activity recovered more quickly, commercial aviation still struggles to make a living. The recovery has started mostly on domestic flights, with very little sign of rebound in international flying, caused by travel restrictions. This is supported by data published in Honeywell report, which shows 40% decrease in corporate aircraft activity year-over-year, but only 25% in private aircraft sector. There is also notable difference visible in charter demand caused by some of the customers upgrading from the first-class commercial travel to private travel. According to GoGo Business, charter flights have regained 90% booking capacity already in June 2020.
Analyzing business jet sales, consequences are far less drastic. Short-term reductions in both deliveries and expenditures aren´t expected to have lasting impact. Honeywell projects, that delivery values are likely return to 2019 levels in first half of the decade.
Despite the numbers are still down, significant tailwinds are coming. 2021 performed even more optimistic start than experts anticipated, as we have seen a resilient market. Furthermore, long-term forecasts are pretty constant and have not changed significantly, giving us hope for brighter future.
However, this crisis is specific in terms of market behavior. Driven by health concerns, visible division between private and corporate flying occurred. While business-aircraft activity recovered more quickly, commercial aviation still struggles to make a living. The recovery has started mostly on domestic flights, with very little sign of rebound in international flying, caused by travel restrictions. This is supported by data published in Honeywell report, which shows 40% decrease in corporate aircraft activity year-over-year, but only 25% in private aircraft sector. There is also notable difference visible in charter demand caused by some of the customers upgrading from the first-class commercial travel to private travel. According to GoGo Business, charter flights have regained 90% booking capacity already in June 2020.
Analyzing business jet sales, consequences are far less drastic. Short-term reductions in both deliveries and expenditures aren´t expected to have lasting impact. Honeywell projects, that delivery values are likely return to 2019 levels in first half of the decade.
Despite the numbers are still down, significant tailwinds are coming. 2021 performed even more optimistic start than experts anticipated, as we have seen a resilient market. Furthermore, long-term forecasts are pretty constant and have not changed significantly, giving us hope for brighter future.