The 2018 Wealth Report: Avionco on 6 findings that are good for private flight in Europe

Every year, Knight Frank Research produces a detailed look at how personal wealth is evolving around the globe.  While it offers an interesting observation on current socio-economic trends and predictions around the world, at Avionco we like to apply the learning to how it may impact the business of flight.  After all, wealth and where that wealth is coming from can help identify growth opportunities and risk factors for those of us in the private flight industry.

Here are 6 interesting points we took away from this year’s report.

  1. Europe continues to show great potential for growth in private flight. The Wealth Report highlights that despite Brexit, London is one of the biggest beneficiaries of the shifting flow of global capital.  It further states that while Europe has had it’s challenges, Frankfurt, Paris, Munich, Amsterdam and Madrid all saw double digit price rises in prime property in 2017. These are of course indicators of an economy that can support the industry that we and others serve.
  2. Positivity abounds in Russia, Africa and Middle East.In each of these markets the study reports on the outlook of wealth advisors who say that in each of these markets their clients’ wealth increased in 2017 and will do so in 2018. What makes this significant is that the same advisors observe negative trends in virtually every other market. At Avionco, this tells us that we’re in the right place at the right time.
  3. Growth among the super wealthy continues in key markets.An interesting statistic reported in the study measures growth among individuals worth over US $50MM in 2017. Those markets that will see over 10% growth include Sweden, Netherlands, Switzerland, France and Germany with Russia showing growth of 20%-30% in this elite category.
  4. Berlin is singled out as one of the 5 Prime Movers worldwide in second home and city residential markets. The study observes that a prospering economy has propelled the city high up on the wish list of global investors seeking a stable political landscape and high quality of life.  These are two factors that are certainly in sync with the private flight industry.
  5. The next 10 years will be driven by the impact of private wealth.The study makes the observation that “The 1990’s were all about the wave of institutional capital. The next 10 years will be all about the impact of private wealth”. For private aviation we think that means there will be greater opportunities for providers who can up their personal service and customer relationship management games.
  6. Europe looks at private flight differently from North America. Watching trends in private aviation is a big part of our business at Avionco.  As reported in a previous blog, the ways in which the wealthy are approaching private flight are changing.  In Europe, these customers are more likely to charter (51%) or participate in fractional ownership (9%) versus full ownership.  This contrasts with North America at 27% and 11% respectively. This will continue to have an impact on the kinds of services our industry must provide to be successful.

Overall, Europe looks like the place to be in 2018 and beyond in terms of growth in the business of flight.

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