Three tasks should feature on business aviation firms’ to-do list over the next 10 years, according to Dean Roberts, analysis executive – Business Aviation Rolls-Royce North America.
“The first is to continue the work of securing the company [against the impact of Covid-19] that has been taking place over the past three months,” Roberts told the CJI Global 2020 conference.
“The second is to get through the next two years,” he said, contributing to the forum: Business Aviation 2030 – how 2020 is shaping the next 10 years. “The third is the need to revisit the [company’s] strategy.”
Roberts urged businesses to reappraise their investment strategies in the wake of the global pandemic. “Investment dollars will be scarce and hard to get hold of,” he told delegates. “So, you need to be sure that what [money] was allocated three months ago will be appropriate to 2030. We are all under a lot of pressure to cut investment dollars.”
But the companies “who will win” coming out of recession are those who invest, he acknowledged.
How companies implemented those three tasks should be informed by the knowledge that four key drivers will shape business aviation over the next 10 years. Those are: Globalisation, Urbanisation, Environmental priorities and Government intervention, which is “now a thing when it wasn’t three months ago”. Roberts highlighted: “The overriding issue is environmental [considerations]. We see it now, but we’ll see it more in 10 years.”
‘10% doesn’t sound like high market penetration’
Shawn Hall, chief commercial officer for Signature Aviation, said the industry stood on the brink of great opportunity – if it could persuade many more high net worth individuals to fly privately. “A study from McKinsey showed that only 10% of those who have the wealth to fly privately are doing so. 10% doesn’t sound like high market penetration to me.”
Nadya Krishko, Honeywell Aerospace, said today’s leading edge WiFi technology will become standard operational equipment for all aircraft. “Everyone will have it as a standard product,” said Krishko.
Steve Friedrich, chief commercial officer, Embraer Executive Jets, said the changes happening now in aviation transport would have a “generational impact”. He said: “Private aviation will be seen as a much better option for people. There were about 35 touch-points for people travelling by business or private aviation compared with about 700 for an airline.”
Sustainability would also become even more important over the next 10 years, he added. This would apply not just to Sustainable Aviation Fuel (SAF), but to manufacturers’ carbon footprints. Embraer was working with its suppliers to encourage clean energy supplies and prioritising the up-cycling and recycling of materials, including natural ones, in aircraft manufacture.
Manufacturer’s carbon footprints
Urban air mobility would also receive growing attention in the years to 2030, he added. Hall said one of the lessons learned from the Uber Copter experience in New York City was the high level of education needed by consumers.
Business aviation should establish a more visible and positive presence in communities to secure its future, according to Friedrich, from Embraer Executive Jets. “We have to find a way to support the needs of the community. Then, business aviation will be seen as a tool for productivity and good for economic growth,” he said. “It’s also good to say we’ve been helping from a health perspective by flying around PPE [personal protective equipment]. All aviation is uniquely placed for Covid because it’s all about safety.”
Meanwhile, more information about the 30-plus hours of content, available to watch on demand, from CJI Global 2020 is available here.
Business Aviation 2030 – how 2020 is shaping the next 10 years
-Shawn Hall, Chief commercial officer, Signature Aviation
-Steve Friedrich, Chief commercial officer, Embraer Executive Jets
-Nadya Krishko, Honeywell Aerospace
-Dean Roberts, analysis executive – Business Aviation Rolls-Royce, North America.