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Matthias Knab, Opalesque:

The private aviation industry is experiencing a remarkable surge, driven by global wealth accumulation, technological advancements, and evolving business needs. This boom is reshaping not only how the ultra-wealthy travel but also how companies operate and engage in philanthropy.

Nearly two-thirds of the world's private jets - 15,000 planes - are registered in the United States, according to data from Airbus Corporate Jets. However, the rest of the world is rapidly catching up, with the United Arab Emirates (UAE) emerging as a particularly dynamic market.

The UAE is set to attract an influx of 6,700 millionaires in 2024, more than any other country. This migration, primarily from India, the wider Middle East, Russia, Africa, the UK, and Europe, is fueled by the UAE's attractive tax policies, business-friendly environment, and luxurious lifestyle. As a result, the UAE is on track to attract nearly twice as many millionaires as the US.

Dubai, in particular, is experiencing explosive growth in its ultra-high-net-worth population. The number of centi-millionaires (individuals with a minimum of $100 million in investable assets) in Dubai is projected to grow by 150% by 2040.

While the global private aviation market is expected to grow at a Compound Annual Growth Rate (CAGR) of 5.4%, the Middle East could see even more substantial growth. Saudi Arabia is constructing six to eight new terminals to service private jets, and Sharjah, a neighboring emirate of Dubai, will add a 14,000 square-meter hangar and "VVIP" terminal.

The private aviation boom is complemented by significant technological advancements and a growing focus on sustainability:

1. Next-Generation Aircraft:
   • New business jets like the Airbus TwoTwenty offer 1/3 lower key operating costs compared to other large business jets and twice the value retention.
   • The TwoTwenty provides 73 sq. mt. (786 sq ft) of floor space, up to three times the cabin space of large business jets.
2. Environmental Considerations:
   • The TwoTwenty boasts 50% lower emissions per square meter compared to other large business jets, with NOx emissions 45% below standards.
   • Sustainable Aviation Fuel (SAF) can reduce CO2 emissions by up to 80%. In November 2023, Emirates operated an Airbus A380 demonstration flight powered by 100% SAF.

The private aviation sector's growth is also influencing business practices and philanthropic efforts:

• More hedge funds and private equity firms are looking to upgrade their aircraft or purchase a private jet for the first time.
• There's an increasing emphasis on face-to-face meetings with clients and business partners, as well as a growing focus on security.
• A survey of 100 large U.S. family offices (average Assets Under Management of $3.35 billion) revealed that 87% are open to using their aircraft for philanthropic purposes.

As the private aviation industry continues to evolve, it's clear that it will play an increasingly significant role in global business, philanthropy, and sustainability efforts. The intersection of wealth accumulation, technological innovation, and changing business practices suggests a dynamic future for this sector.

To explore these trends further, Airbus Corporate Jets is hosting an exclusive webinar on the intersection of business efficiency, global philanthropy, and environmental stewardship in private aviation.

Featured Speaker: Chadi Saade - President, Airbus Corporate Jets
Date: Tuesday, November 5th, 11 am ET (4 pm GMT, 5 pm CET, 6 pm Riyadh, 7 pm Dubai)
Registration: https://www.opalesque.com/webinar

This Opalesque INTERACTIVE session takes the popular webinar format to a new level. Register now for this insightful and educational session designed to understand how a growing number of sectors are using business aviation to support their philanthropic work and overall operations.