NBAA-BACE: Private jets ‘vital business tool’ for US senior execs
Private jets are “a vital business tool” for 95% of senior executives at large US corporations who use the aircraft, reveals a new study commissioned by Airbus Corporate Jets (ACJ). The same percentage of companies that own or lease a private jet expect to upgrade them to newer models over the next five years.
Private jets enabled business leaders to reach destinations more quickly, have more face-to-face meetings with clients and business partners and use their time more efficiently, according to the survey.
More than three-quarters (83%) of senior executives believe they can work more effectively on board a business jet than in their own office. About 86% of those surveyed predicted US companies that own or lease their aircraft will increase their utilisation of them over the next two years.
Driving this increased use is expected to be a rise in travel budgets, with 83% of those senior executives surveyed reporting that the level of continental and intercontinental travel has increased during the past two years. Overall, 88% of respondents say their company’s budget for business travel has risen.
Personal security
Nearly two-thirds (62%) of those surveyed highlighted the greater flexibility provided by private jets compared with airline travel. Some 60% cited a growing focus on personal security, 48% who highlight the greater technology on board aircraft and 47% who cited a greater focus on the well-being of staff.
Vincent Tessier, head of Marketing, ACJ told CJI: “The most important finding from this research for me is that almost all the participants highlighted the fact that they regard business jets as a vital business tool.” Recent rapid advances in the quality of in-flight connectivity coupled with the lack of interruptions made business jets an ideal working environment.
While video conferencing had experienced a boom in popularity during the pandemic, senior executives were now increasingly turning to in-person meetings to close business deals. “Nothing can replace face-to-face connections, which is why business jets are judged a vital tool for business,” Tessier told us. “People are looking for the convenience and the simplicity that business aviation offers. We provide the right tool for this purpose.”
Also revealed by the survey were the plans of 95% of companies that own or lease a private jet to “upgrade them to better, newer models over the next five years,” according to the research.
The main reason for upgrading is to have a more fuel-efficient aircraft, as highlighted by 76% of those surveyed. Nearly half (49%) reported a growing need for a bigger aircraft as more company executives are using business aviation. Then, 47% said they were considering upgrading their aircraft in response to prioritising managing operational costs.
Meanwhile, in a separate survey, commissioned by ACJ, 62% of US-based business aviation financiers and private jet brokers expected the sale of large business jets to climb over the next five years. Of those surveyed, 8% expected a dramatic rise.
The main factor driving the sale of business aircraft in the US is that many owners have older aircraft and are looking to upgrade them. Other motivations include: OEMs introducing new models, especially in the midsize and heavy jet categories and wider recognition of the business benefits of using private jets.
Contributes about $182.8bn
Business aviation will contribute about $182.8bn to the US economy in five years’ time compared with its current contribution of about $150bn, according to the ACJ survey of private jet financiers and brokers. This partly reflects the private jets’ ability to link remote communities and offer flexible travel options for business leaders. The US has more than 5,000 public-use airports but fewer than 500 have a commercial airline service.
Meanwhile, read how 84% of US-based business aviation financers and private jet brokers expect the business finance and leasing market to grow between now and 2026. Plus, 82% of respondents predicted access to business aviation finance would increase between now and 2027.
The research was published at the NBAA-BACE event in Las Vegas.
