The private jet market - France

1.2 The global private jet market

The worldwide Covid-** epidemic has not only caused a partial collapse in air travel, but travel has become even more complicated, and many people are still reluctant to travel. More people than before are now opting for private jets, as they limit health contacts and are subject to fewer regulations. As a number of commercial flights were canceled by the authorities during and following the peak of the epidemic, private jets were in high demand. These private jets were also authorized by the authorities to fly domestically and internationally, to deliver Covid-** vaccines to various locations. Changing consumer preferences and the flexibility of available charter options then favored the growth of the private jet market. [***]

Indeed, the global private jet market was valued at $**.** billion in **** and is expected to register a CAGR of *.**% over the period ****-****, taking it to $**.** billion by ****.

Private jet market size forecasts World, ****-*****, in billions of dollars Source: ****

In recent years, a certain segment of the population has come to appreciate luxury travel to various parts of the world. The trend towards owning a private jet is not only a symbol of luxury, but also a reason for convenience. There is a growing demand ...

1.3 The French private jet market

According to theEuropean Business Aviation Association(***) compared with ****, reaching ***,*** movements over the year. The majority of these movements took place at Paris Le Bourget airport, with **,*** arrivals and departures, including *,*** to Nice, the busiest intra-national route in ****.in both French and European terms, Paris Le Bourget is the busiest airport, ahead of Nice.

In fact, according to the PrivateFly study, **% of flights were booked in the week before take-off, reflecting the uncertainty of travel plans during the peak of the pandemic.

Thus, "the year **** will certainly be remembered. The COVID-** pandemic affected all economic sectors, including our own, but private aviation did not suffer as sharp a drop in demand as commercial aviation and other segments of the travel industry. This year, PrivateFly even operated more flights than in ****," said Adam Twidell, Managing Director of PrivateFly.

According to Capitala tenth of all flights departing from France in **** were by private jet, representing a market worth almost $* billion.

In France, Paris-Le Bourget airport attracts the most private jet movements: **,*** trips and over ***,*** passengers were recorded in ****.

Unlike commercial airlines, private airlines have been able to recover from the crisis more quickly. Business travel accounted for **% of European air traffic in July ****, compared ...

2.1 Typology of demand

The results of a survey of business travelers conducted by Fly Aeolus provide a better understanding of the demand segments for private/business jets. Some of the results are discussed below.

Demand segmentation by trip type Europe, ****, in Source: ****

In total, according to the graph above, **% of all travelers surveyed fly to meet a client or get to an office located in another city. That's **% of travellers whose main reason for travelling is work-related. Within business travel, the main reasons for travel are visits to customers and suppliers, at **%. It also appears that leisure accounts for a small proportion of air travel in general, but this is also linked to the fact that this study focused primarily on business travellers.

Average number of air journeys made by business travellers Europe, ****, in % Source: ****

The frequency of these air trips is also important: it can vary considerably from company to company. More than a third of business travelers surveyed fly more than ** times a year, while **% travel less than ** times a year. What's more, *% of business travellers make more than ** journeys a year, which is a very significant number.

2.2 The main determinants of demand

The main criteria taken into account for a flight Europe, ****, in Source: ****

The criteria for choosing a flight for business purposes are often quite dictated by the flight schedule, but this is not the only criterion, since the graph above shows that the fact that the flight is direct, the departure airport and the ticket price are also important factors. However, both the direct flight and the concern for time management are time-saving factors, which means that the main criterion for a business flight is time-saving, accounting for almost **%.

Main points of dissatisfaction for business travelers Europe, ****, in Source: ****

The points of dissatisfaction outlined above can also enable us to better define demand segments, in order to find the best solutions to meet them. This graph once again reveals the importance of wasted time for business flights: **% of dissatisfaction concerns the unavailability of direct flights or waiting time. A further **% of respondents complained about flight times, which resulted in departures too early or arrivals too late. **% of travelers also said they were dissatisfied with airport accessibility and transport links.

2.3 Potential areas for improvement to meet demand

Key areas for improvement in the travel experience Europe, ****, in Source: ****

Waiting thus seems, as announced in the previous sections, to be one of the main points for improvement linked to business flights. **% of business travelers would like to spend less time on the way to and in the airport. This result is a response to the tiring aspects of business travel for those surveyed. Indeed, business travellers also resent the traffic jams on the way to the airport, and the queues for airport security and check-in. These figures argue for a major improvement in the travel experience. Flexibility is also an important factor, especially as it is increasingly restricted by measures and regulations linked to the current health situation.

Breakdown of business travel by number of travellers (***) Europe, ****, in % Source: ****

In Europe, it turns out that business travelers travel alone in half the cases. But this also means that **% of trips are made by several people (***).

2.4 Trends in demand for private jets

The Covid-** pandemic has seen a phenomenal surge in private jet activity: with air travel still affected by the health crisis, the wealthiest and some business travellers are turning to these much more convenient means of air transport.

It turns out that a significant number of private jet flights are indeed tourist flights, which can be explained by the fact that many Americans have seen their fortunes soar with the onset of the health crisis, preferring to travel by air.this can be explained by the fact that many Americans have seen their fortunes soar with the advent of the health crisis, preferring to forgo traditional commercial flights and *st class to ensure that they travel alone, with less risk of contamination and more comfort [***]. The number of wealthy individuals, and billionaires in particular, continues to rise, fuelling markets such as private jets, as these people are keen on comfort and privacy. As the graph below shows, the number of billionaires has risen by ***% in ** years.

evolution of the number of billionaires worldwide World, ****-****, in units Source: ****

As a result, private jet companies are facing exploding demand: for example, FlexJet and NetJets have been forced to close their operations to ...

2.5 Environmental issues influence demand

The summer of **** was the second hottest on record after ****, with temperatures*.*°C higher than the average observed between **** and ****, according to Météo France in its summer report dated August **, ****. This once again raised the question of climate change and the measures to be taken to limit heatwave phenomena such as we saw this year. Consumption patterns have been called into question, particularly those of the wealthiest , who often resort to more energy-hungry forms of consumption, such as private jets.

added to this is the war in Ukraine and the halt in Russian gas deliveries to France. The authorities therefore fear energy shortages this winter, and have called on the French to reduce their consumption as much as possible in order to avoid blackouts over the winter. Faced with these demands from the government, public opinion has turned much of its attention to the consumption of the wealthiest members of society, which, as mentioned above, is far more energy-hungry than that of the French population as a whole.

One of the key issues on which public opinion has turned is the consumption of private jets by the wealthiest members of society. Indeed, numerous accounts tracking the movements of the ...

3.1 The structure of the private jet market

Private jet value chain based on the Dassault Aviation production modelFrance

Source: ****

The private jet industry includes a number of traditional players in the sector, who in this case are part of the aeronautics industry as a whole, and whose activities are not confined to the design and manufacture of private jets. These include :

Source: ****

3.2 Private jet production in France

In this section, we use NAF code **.**Z entitled "Construction aéronautique et spatiale", since private jet builders are above all aircraft manufacturers. According to the INSEE definition, this NAF code includes :

Construction of aircraft for freight and passenger transport, for the armed forces and for sporting use Construction of helicopters Construction of gliders and airships Manufacture of aeronautical parts and accessories (***)

Although the construction of private jets represents only part of this NAF code, it does give us a glimpse of general market trends, particularly in terms of the geographical distribution of aircraft construction zones.

Change in the number of employees in the aircraft manufacturing sector France, ****-****, in thousands of employees Source: ****

According to the graph above, the number of salaried employees rose between **** and ****, with a **% increase in the number of salaried employees between **** and ****. However, the years **** and **** both recorded a decline in comparison with the previous year, reaching ***,*** employees in ****. As for the trend in the number of companies shown in the graph below, this is a little less regular, but followed an upward trend between **** and ****, before declining by *% between **** and ****. However, in absolute terms, this still represents an **. *% increase in the number of companies ...

3.3 The players in private jet transport

The private jet market isn't just about building jets. Above all, it concerns the travel services offered by various players such as Vista Jet, the world leader in the business jet market. In this section, we'll be using NAF code ****Z, which stands for "Passenger air transport".even if only **% of European flights are private flights [***], we know that the French market is number one in Europe in this field, which could mean that this share could be higher in France. So, this NAF code could give us some overall dynamics of the market players. Here's what code ****Z takes into account:

Passenger air transport on scheduled routes and timetables Charter flights for passengers Sightseeing flights (***) Rental of aircraft with pilot for the purpose of transporting passengers General aviation activities, such as the transport of passengers by flying clubs for instruction or leisure purposes Air cab services

number of employees in passenger air transport France, ****-****, in units Source: ****

The graph above shows that the number of employees in the passenger air transport sector has been falling steadily since ****, with a decline of around **% in the last ten years. Despite a slight upturn in ****, **** saw the sharpest drop in headcount over ...

3.4 Distribution of private jets on the market

The main airports around which journeys are concentrated :

Paris-Le Bourget airport, mainly dedicated to business aviation:Paris-Le Bourget airport is unique in Europe. It is the only airport catering exclusively to private aircraft. From turboprops to regional aircraft for group flights, all types of private aircraft are available. The way Le Bourget operates makes it Europe's busiest airport for business aviation. Open ** hours a day, it handles over ***,*** passengers a year. With over **,*** movements in ****, it serves the French capital, one of Europe's most important business centers. Nice airport for private jets:Whether vacationers or business travelers, Nice airport is the second most popular airport in France for private jets. The French Riviera and business centers such as Sophia Antipolis attract millions of peopleevery year. Nice airport also offers a dedicated business terminal with two FBOs (***) offering passengers greater discretion and anonymity. Cannes airport:Cannes is a popular destination for Europe's rich and famous. The airport attracts an international clientele and is a major player in business aviation between May and September. The Côte d'Azur's major events take place in Cannes, bringing together luxury travelers, making Cannes Mandelieu France's *rd busiest business airport. Basel-Mulhouse-Freiburg airport: Basel-Mulhouse-Freiburg Euroairport is located on ...

4.1 Typology of private jet rentals

Jets can be differentiated in a number of ways, including size, maximum distance they can travel, maximum number of passengers, price, luxury...We've decided to use two typologies to provide more information. The one below gives an overview of the aircraft's flight zones. We have :

Turboprop aircraft, capable of carrying between * and * people over distances ranging from *,*** to *,*** kilometers. They generally operate in France and Europe. Examples include the Pilatus PC-** and the Beechcraft King Air ***. Small aircraft, known as very light or light jets, which can carry between * and * people over distances of between *,*** and *,*** kilometers. They too are used for routes in France and Europe. These include the Cessna Citation Mustang and the Phenom ***E. Private midsize jets have a slightly higher transport capacity, with the ability to carry between * and ** people over distances of between *,*** and *,*** kilometers. They are more commonly used for journeys to major European capitals or the eastern USA. These include the Gulfstream G***, the Embraer Legacy *** and the Cessna Citation Sovereign +. Large business j ets offer even greater capacity, carrying between ** and ** people over distances of between *,*** and **,*** kilometers. They are used for longer routes, to Asia or the USA . These include the Dassault ...

4.2 The offer to buy private jets

Different purchase costs:

Here are a few non-exhaustive examples of market prices for private jets:

Source: ****

However, there are also offers for pre-owned private jets:

Source: ****

A minimum of *** hours per year for a purchased aircraft pays for itself:

The price of the aircraft must always be compared with the frequency of use. Expert calculations show that you need to fly a minimum of *** hours a year for a purchased aircraft to pay for itself. If you fly around *** hours a year, there's no doubt that buying a private jet can be a good deal.

An aircraft on the ground costs twice as much as one in the air:

Moreover, if your trips last more than * nights, it's more profitable to buy a business jet than to rent one. For airlines, an aircraft on the ground costs twice as much as in the air: parking space, crew to accommodate, aircraft unavailable for other customers. For trips of more than ** hours, airlines generally choose to return the aircraft to its base. The customer then has to pay for a double rotation. Ownership avoids all these inconveniences, since the aircraft remains at the place of stay, with no obligation to carry other ...

4.3 Environmental concerns linked to the rise of private jets

Private jets generate * to ** times more pollution per passenger on board than airliners, and ** times more than a train, according to Transport & Environment. The NGO fears that the phenomenon will worsen in the future, as jet owners opt for larger and larger aircraft.

Between **** and ****, pollution from these aircraft rose by **% in Europe. This increase is far greater than that seen in commercial aviation.

France and the UK alone account for **% of pollutant emissions from private jets in Europe. The outward and return flights between London and Nice top the list of the top ** most environmentally damaging private jet journeys in Europe.

In addition, one out of every ten flights departing from France is by private jet. More than half of these journeys cover distances of less than *** kilometers, and in **% of cases, they fly without passengers. These are "short journeys that can most of the time be replaced by other modes of transport", explained Jo Dardenne, spokesperson for Transport & Environment.

The NGO recommended several solutions: limiting the use of private jets, switching to electric or hydrogen-powered aircraft for certain routes, and raising taxes. The hundreds of thousands of euros raised would finance research into greener technologies.

There are, however, a ...

4.4 The effects of war in Ukraine

The effects of the conflict on French aerospace construction

France is a world leader in the aeronautics market, thanks in particular to Airbus. Players in this market participate in various ways in the construction of jets destined for the market. However, the war in Ukraine has put the brakes on global and French aerospace production. This market is heavily dependent on ores and materials supplied by Russia and, to a lesser extent, Ukraine. Alain Lucet, Director of the Lisi Aerospace plant in Parthenay, comments: "I'm not pessimistic. I'm a pragmatist. We have to face up to the situation. The global aerospace industry cannot function without Russian ores. The basic minerals used in the aeronautics sector are **% supplied by the Russians" [***].

The example of titanium is a particularly good illustration of France's dependence on Russian production of materials for the aerospace industry. In Europe, demand for titanium is mainly driven by civil aeronautics, which accounts for **% of the metal's consumption. [***].

According to Gifas (***), the French aerospace sector consumes **,*** tonnes of titanium a year, **,*** tonnes of which is imported from Russia. As a result, the French industry will be **% dependent on Russian titanium by early ****. This proportion is even higher for certain manufacturers ...

5.1 Current regulations

There are two major regulations: the Federal Aviation Administration (***) isobtained or renewed. The flight crew must meet medical and technical competency requirements, and the aircraft must undergo an inspection.

The FAA is very simplified for private transport (***), while EASA is trying to bring private transport regulations closer to those of commercial transport obligations. [***]

First of all, there is a difference in regulations depending on whether the user owns or leases the private jet . Indeed, buying a private jet means first of all owning the aircraft , and therefore having full freedom of use . Private flight is therefore subject to less stringent regulations than leasing, which is subject to the criteria for Public Passenger Transport. [***]

Any private jet operator providing a comprehensive air transport service must obtain an AOC. Public passenger transport is based on the following main elements:

Operational constraints: public transport implies the application of a greater safety margin concerning the aircraft's technical performance during landing for a public flight than for a private flight. For example, a private jet certified by the aviation authorities to land on a *,***-metre runway will only be able to land on a *,***-metre runway under public transport. Crew qualification: pilots hold the ATPL (***), giving ...

6.1 Player segmentation

• Dassault Aviation
• Airbus Groupe
• Embraer
• Bombardier
• Boeing
• Piaggio
• AEROAFFAIRES
• Jet Agency
• Vista Jet
• NetJets
• AstonJet
• Flying 7 Air