Nov. 22, 2024
With the U.S. presidential election in the rearview mirror, business aviation stakeholders participating in an NBAA Thought Leadership webinar discussion expressed a cautious but optimistic approach to the coming new year.
NBAA President and CEO Ed Bolen noted the incoming administration, along with leadership changes on Capitol Hill, could bring favorable developments for the industry, such as changes to unpopular tax policies and reduced bottlenecks at the FAA.
Bolen also noted that proposed tariffs against non-U.S. entities and a possible government shutdown could be in view. “There’s a lot that we don’t know,” Bolen added. “Details matter, so I think we’ll have to look at [the situation] very closely.”
Rollie Vincent, president of Rolland Vincent Associates, LLC, noted there are currently 24,500 business jets operating worldwide. “That’s a pretty big number and it’s been growing,” he added. “We’re a growth industry. We have a lot more growth to do.”
That includes a growing number of Millennial business aircraft users, with session moderator Jay Mesinger of Mesinger Jet Sales citing an unexpected move away from fractional providers as new entrants to the industry discovered the benefits of owning their own aircraft.
“These people said, ‘Wait a minute, I don’t want to ride with anybody. I’m going to go buy the whole airplane,’” Mesinger added. “Some of that [pre-pandemic] conversation about moving away from whole aircraft ownership really went away.”
While that’s good news for those selling business aircraft, Steve Varsano, founder and president of The Jet Business, emphasized those trends continue to weigh on available supply.
“A lot more people are actually in our industry, and we [don’t] have a lot more product that’s been brought into the industry,” he said. “That’s really helping our business [and] keeping that demand level up as supply comes down.”
JetNet iQ forecasts 8.1% of the global business jet fleet is currently for sale, with 770 expected deliveries of new aircraft in 2024 – slightly more than the preceding year, though fewer than expected due to delayed deliveries of a new business jet, combined with a recent workforce strike at another manufacturer.
Availability of maintenance and inspection slots, due in part to workforce shortages, also limits business jet deliveries. “We can’t get airplanes purchased for clients [because] the cycle time is so much longer,” said Joe Carfagna, Jr., president and CEO of Leading Edge Aviation Solutions. “If somebody added a capital infusion [to the MRO industry] to magically make people appear, it would be a game changer.”
Addressing those needs and ensuring politicians’ continued awareness of the industry’s benefits to their communities and constituents, requires what Bolen termed, “a multitude of messengers.”
“We talk about being a great industry, being an industry that creates jobs and provides societal benefits and leads on sustainability,” he added. “The good news is that data supports that, but we need to make sure that the message gets out.”
International Business Aviation Council Ltd.