The supply chain recovery happens to be the numero uno challenge that is cited by the European respondents as per business aviation owners and operators by JetNet iQ. The environmental as well as sustainable issues go on to rank no. 2, and the next to follow is the geopolitical environment that attracts and also retains talents, as well as economic pressures.
The challenges that are cited differ to some extent by region
Across North America, which happens to include Canada and the US, the key challenge happens to be in attracting as well as retaining talent, which is then followed by supply chain recovery, airplane maintenance, overhaul capacity challenges, economic pressures like inflation and also interest rates, and also government regulations. Surprisingly, in North America, sustainability did not get into the top five challenges list.
The answer to all the questions is that one should seriously consider flying with SAF-sustainable aviation fuels over the next 2 years, and this also goes on to differ by region.
Across Europe, 57% of the respondents strongly agree or to an extent agree with the statement, whereas in North America, the figure comes to 35%, which includes 9% of those who happen to say that they strongly agree vis-à-vis 25% across Europe.
When it comes to the US, there are many who don’t think that it is a big enough deal, as per Rolland Vincent Associates’ president, creator, and director of JetNet iQ, Rolland Vincent. May be all of it goes away, it is just a fad, and it is not today’s problem. The problems of today happen to be people, supply chains, and MRO. He adds that all this is going to change and it is going to move around, and the fact is that Europe happens to lead here.
It is worth noting that the sentiment pertaining to the business aircraft market happens to be different in Europe as compared to North America, says the survey.
The sentiment of the operator, which goes on to reflect the present faith within the business aviation market, happens to be -8.9% when we talk of North America and 17.9% in Europe.
Vincent says that the mood across North America has indeed dropped below any other region in the world, which, by the way, hasn’t been the scenario historically. Put together, Europe and North America comprise almost 80% of the business aviation fleet.
The fact is that the outcomes in the North American region happen to be a reflection of consumer confidence that’s lower and also higher rates of interest.
Notably, the last time this confidence dipped was during 2020, at the time of the pandemic, when the sentiment dropped to -40%. However, it did recover fast. Moreover, sentiment dips around every four years in the US due to the uncertainties surrounding the presidential election as well as other issues.
When we talk about across the ocean, Europe has a geopolitical challenge as of now, and the US is a long way away from the actual reality. The things taking place in Gaza, in addition to the Russia-Ukraine conflict, are all taking place on the doorsteps of Europe. The respondents in Europe, around 52%, said that the market is now past its low point. There were almost 34% who opined that the market had not reached its low point, and 14% said that it was already at its low point.
When it comes to North America, around 47% of the respondents said that the market is already past its low point; 50.5% opined that the market is not at its low point yet; and around 8% remarked that it is already at its lowest point.
