The role of business aviation in the European Economy

EBAA (European Business Aviation Association) recently commissioned a report, conducted by Oxford Economics, to examine how business aviation is impacting the European Economy.

The findings illustrate not only the direct benefits to its passengers, but also how the sector contributes to the wider economic growth of Europe, by the businesses and communities it serves.

A summary of the key report findings is below.

For private jet charter prices, availability and aircraft advice call our 24 hour expert team on +44 (0)20 7315 4335

Creating connectivity for Europe's businesses

Prior to the economic crisis, business aviation in Europe was growing rapidly, showing annual growth of 7% in both 2006 and 2007, to a level of over 800,000 flights per year. This was heavily affected by the recession hitting hard in 2008, but stabilised in 2010-11.

But it's not just the growth of the industry itself, but how business aviation serves the travel needs and trade routes of other industries. Business aviation enables and encourages regional unity for business leaders and senior executives – this in turn, encourages economic growth in Europe.

Business Aviation can be seen to be creating streamlined and efficient business travel – flying where scheduled airlines do not and filling in the gaps in the commercial airline routings.

Business Aviation, Europe's busiest 500 business aviation routes, 2011

8% of all aircraft, under the control of Air Traffic in Europe, are private jets. Compare private jet aircraft

Driving Europe's internal trade

The report confirms the fact that the majority of business aviation flights (over 60%) are performed as commercial flights in the business arena.

This supports the core benefit of business efficiency – allowing a much faster, more direct means of transport that is often not served directly and would otherwise involve many more hours of travel time, overnight stopovers and inconvenience.

The report finds that 98% of city pairs served by business aviation had no direct scheduled airline routing.

Reasons business executives give for using Business Aviation

The report also cites that 35% of business aviation movements are from individuals and corporate with their own aircraft or fleets, recognising a regular need and benefit of flying privately.

In total, the size of the business aviation industry in Europe is EUR 9 billion turnover, and around 60,000 employees. So the industry is significant in its direct economic contribution, but also in how it enables business and productivity for others.

The economic benefit of a business aviation passenger is estimated to be nine times the GDP contribution of scheduled airline passengers.

65% of private jet users do not own the jet, they charter it. Read more about advantages of chartering

Supporting trade outside of Europe

Europe's economy and its recovery are dependent on how the region competes globally, to encourage investment.

The report estimates that there were almost 49,000 flights between Europe and emerging economies outside of the region.

For example, business aviation is supporting Europe’s trade with markets such as India, citing that over 1400 business aviation flights in 2011 took place between the regions.

Nine out of ten (92%) of these business leaders say direct flights influence their inward investment decisions - Fly direct to your closest airport

Not just pleasure and leisure

There is a misconception that business aviation is the sole preserve of super-wealthy individuals for private leisure flights.

The report suggests that as much as 80% is for business use.

Companies enjoying the business benefits include a quarter of the leading companies listed in the Euro Stoxx 50 and 20% of those in the DAX.

Oxford Economics spoke to companies and individuals who use business aviation, and a common thread was that face to face deal-making is still vital, especially at senior level. Therefore, the value of senior executives doing business in person is facilitated at the most efficient level through business aviation.

Private jet flights can cost as little as £500 per passenger - see empty sector prices

Local economies and employment growth

The report also underlines the economic impact of the industry on local economies, particularly around popular private jet airports.

Farnborough, for example employs 1,000 staff directly, but jobs in the local area that support the wider supply chain are estimated to be over 4,000.

Business aviation is also directly supporting local investment. Paris Le Bourget, for example, which is the busiest business aviation airport in Europe, is estimated to be spending EUR 70million over the next 10 years.

Business aviation can make an important contribution to employment growth as the sector – and those that it supports – recover from the economic crisis.

PrivateFly has a team of 25 aviation experts - meet the PrivateFly team

Legislation and policy affecting Business Aviation

EBAA will continue to represent the industry by lobbying for fair and equitable access to airports and airspace. By giving greater recognition to business aviation, this will give it every opportunity for growth, and in turn, contribute to the wider economic growth in Europe.

The "Better Airports Package" currently planned for the coming months, will decide how slots are granted to non-scheduled operators. How this plays out will have a strong impact on the health of Europe's business.

Fabio Gamba, EBAA CEO wants slot allocation to be more favourable to business aviation, and cites the introduction of Italian 'Luxury tax' as "a double tax on owners and passengers, resulting in dismal traffic figures in the country".

He concludes that "What this study clearly points out is the business Aviation is playing a key role in facilitating Europe's recovery".

Private Jet Charter

For private jet charter advice or prices call +44 (0)20 7315 4335 (24 hours).