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EUROPEAN BUSINESS AVIATION MARKET Emeric Delalandre [email protected] / +33 (0)688626339 March 11th 2016

European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

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Page 1: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

EUROPEAN BUSINESS AVIATION MARKETEmeric [email protected] / +33 (0)688626339

March 11th 2016

Page 2: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

$18.6 trillionEuropean Business Aviation Industry Value in 2014 (2nd largest market after North America)

+ 2,700 private jetsEuropean Business Aviation Fleet in 2014 (2nd largest fleet after North America: +12,000 aircrafts)

€ 3,950 / hourEuropean Hourly Rate in 2014 with a Cessna Citation XL(S) (€ 3,440 / hour in North America)

Sources: PrivateFly & Market Forecast, 2015-2024, Bombardier Aircraft

Page 3: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

+ $20 billion / yearBusiness Aviation generates to the European Economy

+ 800 operatorsand around 4,000 business aircrafts (turboprops & jets)

+ 160,000 peopleBusiness Aviation employs thousands of Europeans

Source: Business Aviation State of the Industry 2014, EBAA

Page 4: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

Popular Private JetRoutes in Europe

Paris - Le Bourget

Geneve - Cointrin

Nice

London - Luton & Farnborough

Moscow - Vnukovo

Zurich

Milano - Linate

Roma - Ciampino

Wien - Schwechat Donetsk

Kiev - Zhuliany

▪ Milan Linate - Roma Ciampino

→ 130 RT/month - 1h

▪ Paris Le Bourget - Geneva

→ 120 RT/month - 50min

▪ Geneva - Nice

→ 70 RT/month - 40min

▪ Paris Le Bourget - Nice

→ 67 RT/month - 1h20min

▪ Moskow Vnukovo - Nice

→ 55 RT/month - 3h30min

Source: PrivateFly

Page 5: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

Business Jet EuropeanMarket Segmentation

Source: Market Forecast, 2015-2024, Bombardier Aircraft

Page 6: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

International Business Jet Market Shares

▪ Performing manufacturers

→ Bombardier

→ Gulfstream

▪ Future business drivers

Source: 2014 General Aviation Statistical Databook & 2015 Industry Outlook, GAMA

Page 7: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

France Business Aviation Market Insights11% of the french aviation marketin movements is a result of private flights.

150+ private flights per day on averagewith most of them from and to

Paris le Bourget has 65 daily departuresof private flights on average.Nice : 40, Cannes: 14

+80 Business Aviation OperatorsUnijet, Aerovision, Dassault Falcon Service.

+310 Aircraftsis a local private jet service.€2,400/hour RT€4,000/hour OW

Sources: Eurocontrol, Amstat, Aircharterguide.com, EBAA

Cessna Citation Mustang

44% 27% 13% 15% 1%

84%

Page 8: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

THE MEANS OF BOOKINGA PRIVATE FLIGHT

CHALLENGES

Process savings - connecting quickly the customer and the operators

Overcapacity - a €1.9 billion marketEmpty Legs - a €1.65 billion market

Source: Business Aviation State of the Industry 2014, EBAA

Final User Broker 1

Broker 2

Broker 3

Operator 1

Operator 2

Operator 3

Personal Assistant

Page 9: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

THE COST OF APRIVATE JET

CHALLENGES

Handling costs at the AirportFuel costs

Airfield costs

Source: Quarterly Business Aviation Market Indicators: Q4-2015, EBAA

100%

39%25% 28%

5% 3%

Total operational

costs

Handling costs at the

Airports

Fuel costs Airfield costs

Airfield passengers

fees

Passengers Taxes

Page 10: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

New disruptive accessibility models

Cash commitment

Price comparison

Contract length

Full OwnershipHuge Initial Investment + Management Fees +

Flight CostsFixed rates Aircraft lifetime

Fractional Ownership

Large Initial Investment + Management Fees +

Flight CostsFixed rates 2 or 3 years

Jet Card Contract costs Fixed rates 1 year

Charter Pay as you go Fixed rates No contract

Comparative Marketplaces

Pay as you go Lowest Market rates No contract

Connecting customers with available aircraftQuicker, more flexible, more value-oriented more transparent Source: PrivateFly

Page 11: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

The private jetluxury industry

TRANSPORTATION EXPERIENTIAL

Automobiles, Marine, Aircraft, Recreational Vehicles, Professional Services

Hospitality, Home, Travel, Activities, Sports, Real Estate, Personal Health Management

PRIVATE AVIATION

CHARACTERISTICS OF LUXURYRARITY EXCELLENCE EXPENSIVENESS TIMELESSNESS

HONESTY TAILORED PLEASURABLE EXPERIENCE Sources: Beau Fraser, Luxury Daily (2014) & Shock of the New Chic, The Boston Consulting Group (2014)

Page 12: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

THE PRIVATE JET USERS

WHO ?GovernmentsCorporations

Wealthy IndividualsSpecial Missions

FOR WHAT ?Excellence Flexibility Convenience Time Savings Cost Savings

Deal facilitation Privacy Stress Savings Perceived Safety

WHY ?Business

WorkTourism

Experience

FLYING PRIVATE IS ALUXURY

VALUE FOR USERSPRICE SPEED SERVICE

Page 13: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

PrivateFly and Victor are multi platform online marketplaces for private jet charter.

Search for a flightThe customer enter an itinerary

and its requirements for a private flight.

Compare quotesThe technology provides to the customer the different options

available.

Book a flightThe customer compare and

book a flight online or by interacting with a specialist.

Page 14: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

Private Jet Marketplaces are a game-changer in a disruptive shared economy

Technologytracking real-time location & availabilityoptimized comparison instant quotes

Network+7,000 accredited aircraftsinternational presencerelated partnerships

Servicefull VIP experts available 24/7consistent and relevant brand excellence as a luxury intermediary

TECHNOLOGY IS CHANGING THE MARKETThe business aviation is heavily brokered

The business jet value is going to be more recognised

BUSINESS MODEL DIFFERENTIATION

Page 15: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

DEVELOPMENT OPPORTUNITIES

➔ SIMPLIFICATION EFFORTS ON THE OFFER

➔ STRATEGIC PARTNERSHIPS IN TECHNOLOGY & TRAVEL

➔ MARKETING & BRANDING

➔ INTERNATIONAL EXPANSION

➔ 360° EXPERIENTIAL LUXURY TRANSPORTATION OFFER

ShortTerm

MediumTerm

Page 16: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

Simplification efforts on the offer

Private Jet Activity ?

Value for customer ?

Contact ?

For individuals or corporations ?

Empty legs, Memberships or flights ?

Page 17: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

Simplification efforts on the offer

Focus on what really matters

Page 18: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

Strategic partnerships in technology & travel

Page 19: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

Marketing & Branding

Page 20: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

Marketing & BrandingIdentity - Storytelling

Why does What does What does

exist ?aspire to achieve ? stand for ?

Page 21: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

Marketing & Branding

Focus on what really matters

PRICE.SPEED.SERVICE.Not only for the users. Think Stakeholders.

One color.One font.One logo, app & others.

Luxury

Page 22: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

Marketing & Branding

Focus on what really matters

Page 23: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

Future outlook. PRICE SPEED SERVICE

Growth of the global business aviation driven by innovation and a recovery of the global economy

Consolidations of the aircraft manufacturers, private jet brokers and operators

Competition on the ability to understand the customer behavior changes

Page 24: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

Private Jet Marketplaces and Technology are disrupting the private jet industry

Process innovation.

Product innovation.

PRICE SPEED SERVICE

time

performance

2016

product

service

Page 25: European Business Aviation Market Analysis 2016 - Game Changers - Emeric Delalandre

Thanks!You can reach me at :

[email protected] +33 (0)688626339

Need inspiration.. #ASKGARYYVEECredits: Sources quoted on related slides