European Business Aviation Market: Emeric Delalandre

EUROPEAN BUSINESS
AVIATION MARKET
Emeric Delalandre
[email protected] / +33 (0)688626339
March 11th 2016

Sources: PrivateFly & Market Forecast, 2015-2024, Bombardier Aircraft
$18.6 trillion
European Business Aviation Industry Value in 2014 (2nd largest market after North America)
+ 2,700 private jets

European Business Aviation Fleet in 2014 (2nd largest fleet after North America: +12,000 aircrafts)
€ 3,950 / hour
European Hourly Rate in 2014 with a Cessna Citation XL(S) (€ 3,440 / hour in North America)
+ $20 billion / year
Business Aviation generates to the European Economy
+ 160,000 people
Business Aviation employs thousands of Europeans
+ 800 operators
and around 4,000 business aircrafts (turboprops & jets)
Source: Business Aviation State of the Industry 2014, EBAA
Source: PrivateFly
Popular Private Jet

Routes in Europe
▪ Milan Linate - Roma Ciampino
→ 130 RT/month - 1h Moscow - Vnukovo
London - Luton
▪ Paris Le Bourget - Geneva & Farnborough
→ 120 RT/month - 50min
Kiev - Zhuliany
Paris - Le Bourget
▪ Geneva - Nice
Zurich
→ 70 RT/month - 40min
Geneve - Cointrin
Wien - Schwechat Donetsk
▪ Paris Le Bourget - Nice
→ 67 RT/month - 1h20min Nice Milano - Linate
▪ Moskow Vnukovo - Nice

Roma - Ciampino
→ 55 RT/month - 3h30min
Business Jet European
Market Segmentation
Source: Market Forecast, 2015-2024, Bombardier Aircraft

International Business Jet
Market Shares
▪ Performing manufacturers
→ Bombardier
→ Gulfstream
▪ Future business drivers
Source: 2014 General Aviation Statistical Databook & 2015 Industry Outlook, GAMA
Sources: Eurocontrol, Amstat, Aircharterguide.com, EBAA
France Business Aviation

Market Insights
11% of the french 150+ private flights Paris le Bourget has 65
aviation market per day on average daily departures
in movements is a with most of them from of private flights on
result of private flights. and to average.
Nice : 40, Cannes: 14
+80 Business Aviation +310 Aircrafts

Operators is a local private jet service.
Unijet, Aerovision, €2,400/hour RT
Dassault Falcon Service. 44% 27% 13% 15% 1%
€4,000/hour OW Cessna Citation Mustang
84%
THE MEANS OF BOOKING
A PRIVATE FLIGHT
Final User Personal Assistant Broker 1 Operator 1

Broker 2 Operator 2 CHALLENGES
Broker 3 Operator 3
Process savings - connecting quickly
the customer and the operators
Overcapacity - a €1.9 billion market
Empty Legs - a €1.65 billion market
Source: Business Aviation State of the Industry 2014, EBAA

THE COST OF A
PRIVATE JET
100%
CHALLENGES
39% Handling costs at the Airport

25% 28%
Fuel costs
5%
3%
Airfield costs
Total Handling Fuel costs Airfield Airfield Passengers
operational costs at the costs passengers Taxes
costs Airports fees
Source: Quarterly Business Aviation Market Indicators: Q4-2015, EBAA
New disruptive
accessibility models
Cash Price Contract

commitment comparison length
Huge Initial Investment

Full Ownership + Management Fees + Fixed rates Aircraft lifetime
Flight Costs
Fractional Large Initial Investment

+ Management Fees + Fixed rates 2 or 3 years
Ownership Flight Costs
Jet Card Contract costs Fixed rates 1 year
Charter Pay as you go Fixed rates No contract
Comparative Pay as you go Lowest Market rates No contract

Marketplaces
Connecting customers with available aircraft

Quicker, more flexible, more value-oriented more transparent Source: PrivateFly
The private jet
luxury industry
Automobiles, Marine, Aircraft,

Hospitality, Home, Travel,
Recreational Vehicles,
Activities, Sports, Real Estate,
Professional Services
Personal Health Management
TRANSPORTATION EXPERIENTIAL
PRIVATE
AVIATION
CHARACTERISTICS OF LUXURY
RARITY EXCELLENCE EXPENSIVENESS TIMELESSNESS
HONESTY TAILORED PLEASURABLE EXPERIENCE
Sources: Beau Fraser, Luxury Daily (2014) & Shock of the New Chic, The Boston Consulting Group (2014)
THE PRIVATE JET
USERS
FLYING PRIVATE IS A
FOR WHAT ?
LUXURY Excellence Flexibility Convenience Time Savings Cost Savings
Deal facilitation Privacy Stress Savings Perceived Safety
WHO ? WHY ?
Governments Business VALUE FOR USERS
Corporations Work
PRICE SPEED SERVICE
Wealthy Individuals Tourism
Special Missions Experience
PrivateFly and Victor are multi platform online marketplaces for private jet charter.
Search for a flight Compare quotes Book a flight

The customer enter an itinerary The technology provides to the The customer compare and
and its requirements for a customer the different options book a flight online or by
private flight. available. interacting with a specialist.
Private Jet Marketplaces are a game-changer
in a disruptive shared economy
BUSINESS MODEL DIFFERENTIATION
Technology Network Service

tracking real-time location & availability +7,000 accredited aircrafts full VIP experts available 24/7
optimized comparison international presence consistent and relevant brand
instant quotes related partnerships excellence as a luxury intermediary
TECHNOLOGY IS CHANGING THE MARKET

The business aviation is heavily brokered
The business jet value is going to be more recognised
DEVELOPMENT OPPORTUNITIES
➔ SIMPLIFICATION EFFORTS ON THE OFFER

Short
Term ➔ STRATEGIC PARTNERSHIPS IN TECHNOLOGY & TRAVEL
➔ MARKETING & BRANDING
Medium
➔ INTERNATIONAL EXPANSION
Term
➔ 360° EXPERIENTIAL LUXURY TRANSPORTATION OFFER
Simplification efforts
on the offer
Private Jet Activity ?
Value for customer ?
Contact ?
For individuals or corporations ?
Empty legs, Memberships or flights ?

Simplification
efforts on the
offer
Focus on what
really matters
Strategic partnerships
in technology & travel
Marketing & Branding
Marketing & Branding
Identity - Storytelling
Why does exist ?
What does aspire to achieve ?
What does stand for ?
Marketing &
Branding
PRICE.SPEED.SERVICE.
Focus on what Not only for the users. Think Stakeholders.
One color.
really matters One font. Luxury
One logo, app & others.
Marketing &
Branding
Focus on what
really matters
Growth of the global
business aviation driven
by innovation and a
recovery of the global
economy
Consolidations of the
aircraft manufacturers,
private jet brokers and
operators
Competition on the
ability to understand the
customer behavior
changes
Future
outlook.
PRICE SPEED SERVICE
Private Jet Marketplaces and Technology
are disrupting the private jet industry
performance
service
Process innovation.
Product innovation.
product
time
2016
PRICE SPEED SERVICE

Thanks!
You can reach me at :
[email protected]
+33 (0)688626339
Need inspiration.. #ASKGARYYVEE

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EUROPEAN BUSINESS

March 11th 2016

+ 2,700 private jets

Popular Private Jet

▪ Moskow Vnukovo - Nice

Source: Market Forecast, 2015-2024, Bombardier Aircraft

▪ Future business drivers

France Business Aviation

+80 Business Aviation +310 Aircrafts

Final User Personal Assistant Broker 1 Operator 1

Source: Business Aviation State of the Industry 2014, EBAA

39% Handling costs at the Airport

Cash Price Contract

Huge Initial Investment

Fractional Large Initial Investment

Jet Card Contract costs Fixed rates 1 year

Charter Pay as you go Fixed rates No contract

Comparative Pay as you go Lowest Market rates No contract

Connecting customers with available aircraft

Automobiles, Marine, Aircraft,

Search for a flight Compare quotes Book a flight

BUSINESS MODEL DIFFERENTIATION

Technology Network Service

TECHNOLOGY IS CHANGING THE MARKET

➔ SIMPLIFICATION EFFORTS ON THE OFFER

Private Jet Activity ?

Value for customer ?

For individuals or corporations ?

Empty legs, Memberships or flights ?

PRICE SPEED SERVICE

Need inspiration.. #ASKGARYYVEE

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