The mood at the 2018 Corporate Jet Investor conference in London this year reflected an industry confident enough to announce its positive outlook on business aviation after a long period of uncertainty writes Alison Chambers.
Mente Group CEO Brian Proctor went as far as declaring: “There has never been a better time in the history of business aviation to buy an aircraft”.
Proctor said one reason is the newly decreased corporate tax rate in the US, which has gone from 35% to 21%. He said the recovery of the bizav market began in 4Q16. Mente Group estimates jet prices will begin increasing from 3Q18.
Chad Anderson, president of Jetcraft, said supply has normalised and demand is strong, meaning aircraft values are depreciating less rapidly.
There’s also the fact disruptive business models are helping the industry grow.
Simon Talling-Smith, CEO of Surf Air Europe, said he’s witnessing a “trickle up” in business aviation as some of his customers become interested in chartering an entire aircraft. However, there are still improvements to be made. For companies like Surf Air to continue thriving, Talling-Smith argued responsiveness to AOGs needs to improve, stating: “When aircraft are on the ground, they’re losing money.”