A Global Business Indicator: Business Aviation Picking Up In 2015
CHICAGO, May 14, 2015 – Jet Support Services, Inc. (JSSI), the world’s leading provider of maintenance support and financial services to the business aviation industry, has released its Q1 2015 Business Aviation Index, which tracks flight hours for business aircraft by region, industry and cabin type. According to JSSI’s Q1 2015 Business Aviation Index, global flight hours increased by 6.8% Year-over-Year (YoY) and 0.2% Quarter-over-Quarter (QoQ). Using a new metric – percentage of peak usage – JSSI concluded business aviation is operating at 79% of the sector’s 2008 peak levels.
“Q1 2015’s flight activity is indicative of a strong North American economy” said Neil W. Book, JSSI’s President and Chief Executive Officer. “However, this is clearly a period of volatility across industries and regions throughout the world. A slowing Chinese economy, coupled with government anti-corruption measures, has had a significant impact on flight hours in Asia.”
JSSI Index: By Peak Usage
For the first time, JSSI reviewed average monthly flight hours per aircraft relative to peak usage. Q1 2008 marked this decade’s highest recorded activity rate, and, as of Q1 2015, JSSI determined monthly usage to be 26.54 hours per aircraft or 79% of the 2008 peak of 33.45 hours.
“This metric indicates corporate travel is gradually climbing towards pre-crisis levels. The C-suite is once again comfortable to publicly acknowledge private aviation is not a frivolous expense, but rather a valuable business tool for an increasingly interconnected global economy,” remarked Book.
JSSI Index: By Industry
By industry, Healthcare (16.9%) and Construction (13.6%) were top performers with double digit growth in the last quarter. Conversely, Manufacturing (-20.3%) and Real Estate (-15.4%) shrank significantly from Q1 2014.
JSSI Index: By Region
When looking at the data by region, Business Aviation experienced growth from Q4 2014 to Q1 2015 in only two markets – Central America and North America. Unlike Q4 2014, however, the often sluggish European market made double digit gains YoY.
Book noted, “We experienced another harsh winter in Q1 2015, so we can expect to see a seasonal rebound across many regions in Q2. Likewise, a stronger US Dollar should boost American multinational spending on business aviation considerably in key frontier markets.”
JSSI Index: By Aircraft Type
Observing Business Aviation activity by aircraft type provides insight as to exactly how the business community is flying. Helicopters and small cabin aircraft were standout categories, as both experienced substantial QoQ and YoY growth.
“It is really exciting to see year over year growth in every cabin type category. The double digit growth in small cabin hours is an indicator of corporate flight departments showing more economic discipline in how they use their aircraft. Short flights don’t necessarily call for rolling out the large cabin aircraft which is going to consume a much more significant amount of fuel,” continued Mr. Book.
About Jet Support Services, Inc.
For more than 25 years, JSSI has been the only hourly cost maintenance provider covering virtually all makes and models of business aircraft, engines and APUs. JSSI provides its customers with comprehensive, flexible and affordable financial tools for managing the often unpredictable costs of operating and maintaining nearly all types of turbine-powered aircraft, including jets, turbo-props and turbine-powered helicopters. As the creator of the revolutionary Tip-to-Tail® Program, JSSI is the only single source provider of this trademarked service. JSSI serves customers globally and manages maintenance services through its worldwide infrastructure of certified technical advisors. For more information, go to www.jetsupport.com.
