As we approach completion of our first year operating our private aviation services in Europe, we’re pleased to see that growth in the market continues to show momentum in both charter and aircraft management sectors. This is a good sign for aviation companies like ourselves who are continuing to invest in the programs, people and infrastructure required to meet demand.
Over the past year, we watched the market closely and continually adjusted our business plan to stay in sync with customer demand, and in doing so we made some observations about why things are the way they are.
Here are 6 key things that we think are driving continued growth in Europe’s private aviation industry:
- There are more, younger, wealthy customers seeking the benefits of private flight.
In addition to the existing, established corporate customers who are traditionally executives or the privately wealthy, averaging 50 years and older – simple demographics combined with economic growth are introducing a new, younger breed of millennials to the industry. This is a generation that is interesting in getting the most out of life and who appreciate the elite services available to those with the money to do so. In our case, we see an influx of bands and their young music celebrities touring the continent and seeking the luxury and conveniences that they can afford. We also see a changing of the guard in terms of the average age of senior executives with a lot more 30 something VP’s and CEO’s emerging in European corporations who need to visit global and local offices. - As the market grows so does the overall business and private aviation fleet.
The result of this growing market means more aircraft are being put into service to meet the demand. In previous blogs we’ve talked about the growing number of aircraft by type and country and this remains consistent. This is driving demand by owners for more aircraft management companies to look after and service the aircraft. It also has a positive impact on recruiting services who find the pilots and crew to operate the flights. - More airports in smaller markets are becoming private flight friendly.
More customers, expanding demographics and economic growth mean more markets need to be accessed. We see an increase in flights to smaller markets with smaller airports with varying service levels. As time goes on these airports are seeing opportunity and increasing their accessibility and service levels to create a positive experience for flight providers and their customers. - The growing market means more competition.
With more and more providers entering the European airspace to provide private flight services, it means more competition – and that means more marketing efforts that generate higher awareness levels among potential customers. As each firm competes to attract customers, it means millions of Euro’s are being invested to increase visibility of their companies and ultimately the industry. - Booking a private flight has never been easier.
Got a smart phone? Want to book a private flight? There’s an app for that. It’s that simple and, as we see the emergence of those millennial customers we mentioned above, we know that technology is the secret to engaging them in the process of easily accessing and booking flights. - Providers are betting on growth as they plan for 2019.
As the market grows so must the infrastructure to serve it. Old or new, large or small, charter or aircraft management – all provider companies are investing in putting services and equipment together so that they can both drive and access the increased customer base in the coming years.