Last year, private aviation saw a 2% decline in activity across Europe compared to 2012; whilst this was slightly disappointing, it was not completely unexpected. This trend was reflected across the majority of aircraft segments, however the ultra-long range, super midsize and very light jet categories all saw substantial YOY growth, especially during the latter half of the year. Ultra-long range jets in particular had a great year seeing increased utilisation (in terms of both departures and flight hours) every month compared to the previous year’s figures.. According to data from WingX Advance, ultra-long range jets averaged over 4,100 flights a month in Europe last year which equates to an average monthly YOY growth of 15.2%. European success was mirrored in the US where the number of long range flights rose 18.7% through to October 2013. So why is it that, in an industry still experiencing decline, one specific segment of the market is thriving so consistently?
2013 Growth by Aircraft Segment
One obvious answer would be that there has simply been a rise in demand for longer haul flights. Whilst we would agree that this seems like a logical conclusion, the data seems to suggest otherwise. On average, just over 11,000 hours were flown in ultra-long range jets in Europe in 2013, meaning the average duration of flights was just 2.7 hours. In fact when you look at this segment’s departures according to trip duration, you can clearly see that a very small portion of flights made, would be considered typically “long range”.
Long Range Jet Departures in 2013 by Flight Duration
When you consider the difference in cost for hiring an ultra-long range jet (e.g. Falcon 7X) compared to say a light or midsize jet (e.g. Citation XLS or Learjet 60), it seems inefficient to be using such an expensive aircraft type to travel relatively short distances. If the range of these aircraft is not the main appeal, what is it that is drawing passengers to choose an ultra-long range jet for their travel needs – capacity, comfort, prestige? WingX reports suggest another reason: according to their data, around 60% of ultra-long range jet utilisation in 2013 was from private flights whilst the remaining 40% was charter. These figures would indicate that personally owned aircraft were used for the majority of flights and therefore would have probably been used regardless of the itinerary. Nevertheless, it is plain to see that the ultra-long range segment of private and business aviation is very much alive, with over 19,700 chartered flights in this segment last year.
As discussed in a recent New York Times article, the rise in ultra-long range jet utilisation is said to be a result of increasing levels of international business. Multinational corporations, inter-continental supply chains and the general effects of globalisation have created a demand for a fast, flexible and convenient means of travelling to ‘far-flung’ locations. With ranges that can easily service routes between business hubs (such as New York, London and Tokyo) and the emerging markets of remote South American and African cities, it’s no wonder that ultra-long range jets are a popular choice with business executives.
Whether for business or leisure, private or charter, it is reassuring to see such strength in what is arguably a slowly recovering industry. Undoubtedly we still have a long way to go before the industry is back to pre-2008 levels, but we are definitely making progress.
Christina Hayes
Marketing Assistant