Mobile Edition
Print
Get the Mag
Weekly UpdatesOrders for new corporate aircraft are increasing as businesses worldwide are experiencing the benefits of control over executive air travel time in an improved global economy.
About 7,815 new business jets valued in total at US$123.5 billion will likely be delivered between 2001 and 2010, according to the General Aviation Manufacturers Association (GAMA). The group is a trade association representing approximately 50 manufacturers of general aviation aircraft, engines, avionics and related equipment worldwide.
Business jet operations at large airports throughout the United States increased in 2003, according to the Federal Aviation Administration, while fractional ownership of airplanes throughout the world also lifted during the year by nearly 7%.
The total number of corporate jet operators worldwide also rose in 2003 by about 4.3%, according to industry research group AvDataInc. At the end of 2003 there were 14,555 corporate jets operators in the world utilizing a fleet of 23,121 aircraft. In the United States alone, there were 10,661 operators utilizing a fleet of 15,870 aircraft by the end of 2003.
One reason for the increase is an improved global economy, which is considered by the aviation manufacturing industry to be the largest driver of sales. Manufacturers expect 2004 to be a year of stabilization that sets the stage for a period of sustained growth.
An improved global economy is particularly important for sales of corporate jets in Latin America, however the impact of that expected improvement would take a longer time to be felt in the region, according to Carlos R Horan, sales director of Latin America for Boeing Business Jets.
"We are anticipating an increase in activity, although it will come a bit slower than in some other areas throughout the world," he said. "We have already begun to receive a lot more inquiries about replacing planes from companies in Latin America whose planes are from six to eight years old. Of primary importance to these companies are space, comfort and range."
Boeing Business Jets, which is a joint venture of the Boeing Company and the General Electric Company, offers the BBJ and the BBJ 2 business jets--both of which are designed for longer-range flights of around 5,000 to 6,000 nautical miles.
Companies with business interests in Latin America are faced with the challenge of frequently moving senior management while improving productivity. These combined issues make corporate jets a particularly sensible investment, according to officials at Embraer (Empresa Brasileira de Aeronautica S.A.).
Embraer is one of Brazil's leading export companies and a major aerospace corporation with 34 years of experience in designing, developing, manufacturing, selling and providing after sales support to aircraft for the global airline, defense and corporate markets.
The company has specifically designed a new concept for business jets with its Legacy Executive, Legacy Shuttle and Legacy Shuttle HC--all created to meet executive needs for top performance, conservative investment, luxury and common sense.
The Legacy Executive provides first-class comfort for up to 16 passengers in a spacious cabin, offering privacy in three distinct seating areas. The plush interior features full-berthing leather seats and divan where up to seven passengers may lie asleep. It also features tables for business meetings and meals, hot and cold food galley, full-breadth aft lavatory and optional forward lavatory, wardrobe and storage cabinets, full entertainment system, and satellite telecommunications. The baggage compartment, the largest in the industry, is easily accessible during flights.
The Legacy Shuttle carries up to 19 passengers in business-class comfort or as many as 37 passengers in the superior airline-type interior of the Legacy Shuttle HC. Both Shuttle versions offer convenient in-flight access to a generous baggage compartment.
As corporations expand across countries and continents, controlling the rising costs of corporate travel becomes critical to a sustainable growth plan, Embraer officials said. The group's Legacy Executive, Shuttle and Shuttle HC require only a conservative level of investment and have some of the lowest operating costs in the industry.
Turmoil in the commercial airline industry is also currently a factor in making corporate jets increasingly more desirable to companies worldwide, according to Paul Nisbet, an aerospace analyst at JSA Research in Washington D.C.
"The increased amount of time it takes to fly on commercial airlines is a macro trend that we believe will drive aviations sales in the future," said Clay Jones, chairman of the GAMA. "Traffic to and from congested airports, long check-in and/or security lines, reductions in flight frequencies and the elimination of service to many smaller communities are all combining to make it more difficult for people to rely on commercial airlines to meet their need for time sensitive travel."
Private jet users typically fly to business aviation airports or terminals, where check-in, customs, security and baggage handling times are much shorter than those experienced by commercial air travelers at main international airports.
The reduction in the number of flights available over the past several years has largely led to increased interest in corporate jet ownership, according to Robert N. Baugniet, director of corporate communications for Gulfstream Aerospace. Corporation. The company has recently increased the number of business jet models it sells to seven--each of which is engineered and designed according to the routes its owner travels.
"The trip that used to be made using commercial airlines in a day now takes several days because of flight reductions," he said. "The impact that this type of travel makes on the body is also significant."
Gulfstream's business jets are able to keep the pressurization of their cabins lower than that of commercial carriers and they circulate fresh air every two minutes to cut back on jet lag.
The greatest value for private jet service customers lies in the flexibility that ownership allows for a better use of their time, according Manfred Schindler, vice president of sales for Boeing Business Jets and Boeing Commercial Airplanes.
"The jets are business tools that provide new opportunities for executives in many different ways. By using a business jet, CEOs can travel while working with their teams and members of the team can have separate meetings without disturbing each other," he said. "Our planes are outfitted with conference tables that can include as many as 10 people. They can fly long range--for example from Buenos Aires to any of the major cities in Europe within 12 hours--and executives don't even have to leave the plane for a meeting when they arrive at their destination: The meeting can be held right on the plane."
Embraer officials point to GAMA studies which found that employees were 60% more productive on a corporate aircraft than aboard an airline flight, while avoiding exposure of sensitive information.
Embraer's Legacy offers the largest cabin in its class, replicating a work environment that promotes productivity. The benefits of convenience and coverage are better delivered by Legacy's mature plat form that has accrued over four million flight hours worldwide, translating into proven availability and comprehensive customer support. The aircraft is always there when you need it, Embraer officials said.
Corporations that realize business travel cost reductions and productivity gains through the effective use of a corporate aircraft significantly improve profitability and enhance shareholder value, the officials added.
The Legacy greatly enhances mobility, meaning broader presence that is crucial to expand business presence in a globalized economy. Its non-stop transcontinental range enables companies to efficiently operate across the globe.
Onboard productivity in the Legacy is being further maximized by new advanced solutions for high speed communications systems, including secure links to corporate networks, Embraer officials said.
FEED