A new year means new opportunities, and new challenges.
With 2019 arriving, its time to for the private aviation industry to take stock of the changes that have occurred in the past year, and get ready for the new year ahead. They say the best planning starts with the right information, and that means taking a moment to look at some of the top private jet industry statistics to keep an eye on in 2019.
Private Jet Sales Down over a Seven-Year Period
While it is true that private jet sales for Q1 of 2018 are up more than 4% over the five previous quarters, it should also be noted that the majority of those sales have been to either the super wealthy,corporate entities, or private aviation service providers.
The sales of private jets to those with a net worth of less than 25M has actually dropped more than 17% over a seven year period. As we progress into 2019 it is worth keeping an eye on this trend and adjusting service availability accordingly, adding planes and staff to meet an increasing demand of additional clients who are opting to use a private aviation service provider rather than going with private ownership.
Jet Fuel Prices and Other Ownership Trends
In the past 15 years, we have seen a veritable roller coaster ride in terms of jet fuel costs. It’s not so much that the fuel itself has been fluctuation in price at any greater amount than any other petroleum-based fuel, but rather we have seen major swings in the taxes applied to aviation fuel. One particularly interesting trend is that more and more countries outside of North America and Asia are lowering or eliminating their aviation fuel taxes, while the United States and most Asian region countries have increased these taxes many times over. This, along with the increase in union pay rates of pilots, increased insurance rates, and other key factors have made owning a private jet less of an attractive proposition than it was even 20 years ago. It is true that these expenses did fall back briefly between 2014 and 2016, but in 2017 an upswing started again that has continued through this year. In 2019, it is expected that fuel prices will swing higher than they are currently in North America, and that this will lead to a sell-off of private jets similar to the one that was seen between 2005 and 2009.
Increase in Private Aviation Service Providers
Perhaps the most important statistic to keep an eye on in 2019 is the addition of more private aviation service providers to the market. More players in the game obviously mean more competition for you to have to contend with. Since you cannot stop more companies from starting up and entering the arena, you have to begin to be smarter about how you approach the acquisition of new customers for your own service. It is estimated that there will be a 4-7% increase in private aviation service providers over the next 12 quarters. This means that you will need to adjust your marketing dynamics to capture more of the estimated 12-19% increased customer base that is expected to develop over the same period.
Staying Up on the Latest Private Aviation Industry Trends is Easy with Help from Offland
With these thoughts in mind, it’s for certain that the next year will bring even more changes to skies in terms of non-commercial aviation. More and more flyers are choosing to use private
aviation services for their travel needs and those who had previously made use of a personal jet have decided to liquidate it in favor of cultivating a relationship with a service that can provide them with the same level of service without the overhead associated with keeping and maintaining a plane when it is not in use. We would love to talk to you in more depth about the changes happening in the rapidly evolving private aviation industry and how you can meet them in terms of marketing your business and services to the particular class of customer who appreciates the finer things in life. We invite you to subscribe to our podcast for interviews, insights, and information about the private aviation industry. If you would like to discuss private aviation marketing with us, please feel free to use our online contact form.