Alternative Market Briefing

Corporate aviation as a strategic business asset

Wednesday, October 30, 2024

Matthias Knab, Opalesque:

With an expected CAGR of 5-7% through 2030, corporate aviation is entering a new era of growth. This expansion reflects the increasing recognition of corporate aviation as a vital business tool that enhances operational efficiency and provides strategic advantages in today's global business environment.

While North America maintains its position as the largest market, rapid expansion in Asia-Pacific and Middle East regions signals the global business community's growing reliance on corporate aviation for competitive advantage. The industry's impact extends beyond direct business benefits, contributing to economic growth through job creation and enabling access to markets that are underserved by commercial aviation.

More players adopt corporate aviation for operational excellence

Market dynamics are evolving to meet changing business needs, with trends toward larger cabin aircraft that serve as productive workspace, increased adoption by first-time corporate users, and growing demand for long-range aircraft that facilitate global business operations. These shifts reflect corporate aviation's role as a strategic business asset rather than a luxury expense.

Key drivers include the post-pandemic reassessment of business travel efficiency, increasing need for secure and reliable executive transportation, enhanced productivity through time savings, and innovative access models like fractional ownership and jet cards that make corporate aviation more accessible to a broader range of businesses.

Digital technologies and AI

The integration of digital technologies and AI in operations, from flight planning to customer service, is expected to enhance efficiency and personalization in corporate aviation. Improvements in air traffic management systems will also optimize flight paths, reduce delays and improve reliability - crucial factors for businesses where time equals opportunity. New business models, including digital booking platforms and shared ownership programs, are making corporate aviation more flexible and cost-effective for businesses of all sizes.

Sustainability has become a core business imperative, with Sustainable Aviation Fuel (SAF) leading the industry's environmental response. SAF can be produced from a number of sources (feedstock) including waste oil and fats, green and municipal waste and non-food crops. Offering up to 80% reduction in CO2 emissions, the largest acceleration is expected in the 2030s as policy support becomes global, SAF becomes competitive with fossil kerosene, and credible offsets become scarcer. Industry leaders like Airbus Corporate Jets are championing this transition, recognizing that environmental responsibility is now a key business consideration.

Sustainability reshapes investment decisions

This focus on sustainability is reshaping investment decisions, with over 90% of new aircraft purchases considering environmental impact. This extends to developing electric/hybrid aircraft for shorter routes and exploring electric vertical takeoff and landing (eVTOL) applications for regional business travel, demonstrating the industry's commitment to both business efficiency and environmental stewardship.

These developments highlight corporate aviation's evolution into an essential business tool that combines operational efficiency, global reach, and sustainable practices to meet the demands of modern business operations.

Interested to learn more? Join the Opalesque INTERACTIVE "Private Aviation's Future: More Business, Philanthropy, Sustainability" on Tuesday, November 5th 11 am ET (4pm GMT, 5pm CET, 6pm Riyadh, 7pm Dubai).

Join Opalesque founder Matthias Knab at this live session and learn from the panelists Chadi Saade, President, Airbus Corporate Jets (ACJ); Paula Daroca Arcas, ACJ Head of Business Transformation & Digitalization; Alexandra Asche, Sales Director, Global Jet Capital and Vincent Tessier, Head of Airbus Corporate Jets Marketing how to elevate Business, Philanthropy, and Sustainability - and how to finance a corporate jet.

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