Europe and US drifting apart

opinion

by Fayaz Hussain

February 3, 2025

Gulfstream G280 and G650 business jets.

A few weeks after the US election, Paramount+ television released Landman. The series stars Billy Bob Thornton as Tommy Norris, an oil executive drilling in west Texas. It is very much of its time.

In one scene his boss, played by John Hamm, says how banks will not lend to the sector: “The world has already convinced itself that you are evil and I am evil, for providing them with the one thing they interact with every day.”

Although recent high winds have seen aircraft flying over at almost record speeds, the cultural gap between the US and Europe seems to have grown in the past few months. This week the General Aviation Manufacturers Association (GAMA) and the European Business Aviation Association (EBAA) issued a study showing policies targeting business aviation flights could decrease foreign direct investment (FDI) into Europe by between €76bn and €120bn, lead to the loss of between 57,000 and 104,000 jobs, slow down the decarbonisation of aviation and weaken the EU compared with the rest of the world. The study was conducted by the consultancy Oxford Economics.

One of the issues that the report highlighted is the EU taxonomy. This is part of its sustainable finance framework and is designed to encourage banks to fund energy transition. “Aircraft produced for private or commercial business aviation” are excluded from this.

“Targeting business aviation with restrictions and unfair regulatory burdens, like the exclusion from the EU Taxonomy framework, risks €120bn in FDI and thousands of jobs by 2030,” said Holger Krahmer, EBAA secretary general. “We should move away from the ban mentality and focus on policies that support innovation, decarbonisation and competitiveness.” Krahmer is speaking at Corporate Jet Investor London next week.

The report estimates that business aviation generates €100bn in economic value each year. “Misguided government proposals can stifle our progress and investments. Balancing growth, sustainability and prosperity amid rising international challenges will boost the competitiveness of Europe,” said Kyle Martin, vice president European Affairs, GAMA.

GAMA and EBAA have decided to go on the offensive with the report. They want to demonstrate the value of business aviation before policies are made into law.

It would be a mistake to be too negative about Europe. It is a mature market, and manufacturers are still selling significant numbers of aircraft here, especially ones replacing older aircraft. Europe is also seeing rising sustainable aviation fuel (SAF) projects following EU and UK mandates.

EBAA is also changing its annual European Business Aviation Convention and Exhibition (EBACE). This year’s event in May will no longer have a static aircraft exhibition on the runway at Geneva Airport.

“We have listened carefully to feedback from our community and those calling for change. We often hear attendees praise the unparalleled networking opportunities and quality conference content on offer at EBACE, with real business happening on the show floor,” says Kramer. “As part of our commitment to amplifying our value proposition for visitors, we’ve made the strategic decision to continue with the exhibition but not to have a static display at EBACE25.” EBAA is not ruling out adding static displays in the future.

The contrast with the US is astonishing. Here you have a business-jet owning president appointing (the excellent) Chris Rocheleau as acting administrator of the Federal Aviation Administration. Rocheleau joins from the National Business Aviation Association (NBAA) where he was chief operating officer. Before that he spent more than 20 years at the FAA.

“Chris is an outstanding leader who will be good for the FAA, good for aviation and good for the country, especially at this challenging time,” said Ed Bolen, president and chief exec of the NBAA in a statement. “He has demonstrated excellence at every level in the government, military and aviation industry.”

Landman covers horrific accidents, billion-dollar projects and drug cartels and is definitely worth watching. It has been a big ratings success, but you should not bet on the European version. In this, all six episodes are expected to take place in a single local authority meeting room as Thomas McNorris (played by Hugh Grant) resubmits planning appeals. It lacks the brutal drama of the US series. Although there is a nasty paper cut in the second episode.