Perception vs Reality The Economic Contribution of Business Aviation

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Perception vs RealityThe Economic Contribution
of Business Aviation

• Brian Humphries CBE IBAC/ICAO Dinner
• EBAA President and CEO Montréal
• 28 May 2009

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Why Europe as the model?

• Faces all BusAv's Global Challenges in respect of
  access proportionate and appropriate regulation
  and public image
• Clear focus on safety
• Global BusAv in a microcosm
• Recently conducted study by PriceWaterhouseCoopers
  provides authoritative economic impact
  assessment of BusAv on the European economy by a
  leading and well respected consultancy
• Europe represents 11 of global business aviation
  operations so when European economic impact is
  factored into the global economy, gross value
  added is substantial.

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Take 4 Perspectives

• The False some Press and Officials
• The True
• European Parliament and Commission
• The Economist
• The Air Traffic Service provider

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The False

• BusAv is for fat cats
• Actually in Europe 80 of usage is by
  Corporations and governments and lt3 by high net
  worths
• BusAv is an unnecessary luxury
• Actually the industry is a major wealth and jobs
  creator
• BusAv competes with the airlines to benefit the
  few over the many
• Actually BusAv serves predominantly those city
  pairs poorly or not served at all by the airlines

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Value to the Business European Commission
Perspective

• General and Business Aviation provides
  closely tailored, flexible, door to door
  transportation for individuals, enterprises and
  local communities, increasing mobility of people,
  productivity of businesses and regional
  cohesion .

Communication from the Commission An Agenda for
Sustainable Future in General and Business
Aviation 11 January 2008 COM (2007) 869 Final
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Value to the Business European Parliament
Perspective

• General and Business Aviation complement
  regular air transport by commercial airlines and
  this provides specific social and economic
  benefits such as increasing the mobility of
  citizens, the productivity of businesses and
  regional cohesion. ..is of growing economic
  importance. 

European Parliament resolution of 3 February 2009
on an Agenda for Sustainable Future in General
and Business Aviation 2008/2134(INI)l
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Business Aviation Piloting the European Economy
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• The Business Aviation sector contributed a total
  of 19.7bn in annual gross value added (GVA) to
  the European economy in 2007, accounting for
  approximately 0.2 of the combined GDP of the
  European Union (EU), Norway and Switzerland

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• Business Aviation accounted for more than 164k
  jobs across the continent and generated combined
  annual wages and salaries of around 5.7bn.

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(No Transcript)
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• Total impact of Business Aviation in France, UK
  Germany is 12.6bn, which represents 64 of the
  total industry GVA in Europe.

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Safety and Security

• Top priorities for business aviation
• IBAC leads the development of best practices for
  global application
• IS-BAO - Corporate operations have one of the
  best safety records in the industry
• New Safety Road Map setting the course for
  continuous improvement
• SMS toolkit now available to support operators in
  meeting ICAO requirements
• Security guidelines tailored to the specifics of
  BusAv

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BusAv and the Environment

• Europe has one of the youngest fleets in the
  world
• Fly to task not schedules
• Almost 8 of IFR traffic but less than 1 of
  emissions
• Full and active participant in Single European
  Sky ATM Research programme(SESAR) for long-term
  reduction in CO2
• Do not sell seats so tonne-kilometre not an
  appropriate PI
• Value added rather than people carried vs.
  environmental impact sustainability
• Prepared to FULLY offset emissions BUT
• Need proportionate Monitoring Reporting and
  Verification (MRV) rules

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Business Aviation declined 3 in 2008
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Flying where scheduled does not
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Everything but routine
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From the Economic Heart
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Recent Growth Outlook
A 15 decline would take us back to 2005 levels.
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Conclusion

• BusAv is a vital tool not a luxury
• BusAv is an additional travel option not in
  competition with the airlines and predominantly
  serves city pairs least well served by the
  airlines
• BusAv is an economic enabler for national and
  regional economies
• BusAv creates Value, Jobs and Wages on a scale
  comparable with other major industries such as
  the telecom manufacturing industry
• BusAv is sustainable and at the very heart of
  economic activity
• BusAv needs fair and equitable access to airspace
  and airports
• BusAv is the Right Tool for Challenging Times