NBAA-BACE trends and new prospects
Considered as one of the largest trade show in the United States, the NBAA-BACE always serves as a good scenario for bringing together leading figures in the industry, current and potential aircraft owners, manufacturers and customers from the Americas, Europe, and Asia. At South American Brokers, for instance, we believe it is a special occasion to build stronger ties with partners and the world’s largest manufacturers. The event, however, offers a unique opportunity to check market behavior, business aviation’s strengths and projections for the near future.
It is worth noting that more and more customers, evidently, prefer the numerous advantages of using private aviation as it offers a wider range of possibilities and aircraft configuration for every flight. That is why according to leading firms in market research – such as AMSTAT and JetNet – the business aviation industry is expected to grow 33% over the coming decade. Jetcraft, another expert in aircraft sales and ownership strategies estimates that the global business aviation installed base of more than 21,000 aircraft will surpass the 28,000 unit mark in 2026, representing a 33% growth during this new cycle. This means that manufactures, air brokers and operators must prepare for more than 8,300 unit deliveries including more than $250 billion in revenues – based on 2017 pricing – to be executed by 2026. As usual, North America will keep its position as business aviation’s top region with more than 5,100 units (62% market share of unit deliveries), followed by Europe with approximately 1,420 units and Asia with 1,002 units (17% and 12%, respectively).
And what are the projections for the pre-owned aircraft market? Well, according to data provided by JetNet, 2,285 business aircraft, out of a total amount of 21,870 worldwide, are currently on the market representing a 10.5% of the existing installed base. In other words, the pre-owned market is recovering its pre-recession levels. In this scenario, The United States is also leading the way, followed by Latin America and Canada. Data provided by AMSTAT reveals that 454 business jet transactions have been executed in Latin America during the first half of 2017, with 132 of those taking place in Brazil. And it is certain that nearly all of those 132 transactions come from within the country (Brazilian owners selling their jets to international buyers in U.S. Dollars can offset tax loss due to the Real’s devaluation). Mexico, on the other hand, has executed 106 transactions during the same period of time, with more jets coming from outside of the country. Chile has decided to make considerable investments to modernize its infrastructure (mainly airports and maintenance facilities), while Venezuela and Argentina have executed 29 and 19 transactions, respectively. Despite economic challenges, the future of Latin America’s aviation industry is very promising as it comprise the consolidation of nine aviation mega-cities and the impressive growth of fleets and traffic demand
Evidently, confidence is back up. During this year’s NBAA-BACE we felt more optimism as many leading figures stated that they believe the business aviation market has left the low point of the current economic cycle behind. And, as the pre-owned aircraft market is a good indicator of the new business jet market, this is excellent news for the industry.
Also South American Jets was present at NBA-BACE, sharing our experience. Images gallery:
Celebrate NBAA’S 70th Anniversary
Las Vegas Conventions Center
South American Jets