BusAv and its Value to Local and National Economies Brian Humphries CBE Chief Executive Officer

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BusAv and its Valueto Local and National
EconomiesBrian Humphries CBEChief Executive
Officer
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What is Business Aviation?

• Business Aviation is that sector of aviation
  which concerns the operation or use of aircraft
  by companies for the carriage of passengers and
  goods as an aid to the conduct of their business,
  flown for purposes generally considered not for
  public hire and piloted by individuals having at
  the minimum a valid commercial pilot licence with
  an instrument rating.

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Who uses BusAv?

• 89 of the Fortune 100 companies
• 346 of the Fortune 500 companies
• 12,500 Corporate Aircraft in operation
• Only 861 in Europe at the latest count !!

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Why?

• New markets exist regionally, nationally
  globally
• Even in the electronic age, travel is an
  essential fact of business
• Airline travel is becoming ever more time
  consuming and a severe negative factor on
  business productivity, especially on short haul
• Productivity drives profits
• Time wasted in airports and indirect travel
  lowers productivity
• Efficient use of time and high productivity are
  key success factors in business today
• Time kills deals

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What?

• Business Aircraft as a corporate perk has been
  replaced by Business Aircraft as a productivity
  enhancer. The corporate jet earns its keep as a
  business tool that serves the firms strategic
  objectives and responds as necessary to tactical
  missions, all within the demanding role of fiscal
  responsibility.
• NBAABusiness AviationManagement Journal

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Value to the BusinessUser Perspective - 5 Key
Reasons for BusAv
Source J. D Power Associates 1999
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Value to the BusinessAnalyst Perspective

• People who acquire business aircraft, perform
• better than industry average.
• EBAA sponsored study in mid 1990s by London
  Business School showed that companies with
  business aircraft performed 11 better than
  average.
• Similar US studies of almost 800 companies showed
  that those using business aircraft performed more
  than 8 above average.

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Value to the BusinessGovernment Perspective

• Aviation facilities are the third most
  important factor influencing inward investment
  decisions with evidence to support the
  importance of BusAv in a number of
  instances. business aviation facilities
  have a part to play in helping to promote
  bi-lateral trade. insufficient capacity
  for business aviation use in South-East will
  have potential adverse impact upon local
  economics and national competitiveness.(Busi
  ness Aviation DTp Dti Report Oct 95)

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Industry ResponseWe Heard Them

• Wonderful facilities built by TAG at Farnborough
• Development of LCY for BusAv
• BusAv grown from nothing to 10 of traffic in a
  decade
• Enhanced facilities at Biggin Hill, Northolt,
  Luton and Stansted
• 22 of movements at Luton are BusAv
• The BusAv community has built the access to the
  South-Eastrecommended by Government in 1995 at
  no cost to public funds
• Local economies national competitiveness are
  benefitingas a result
• BusAv provides an additional airport revenue
  stream operating in the margins of capacity

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BusAv in EuropeThe Fleet is Growing
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BusAv in EuropeMovements are Growing
23000
Farnborough Airport - BusAv Flights
19500
15400
MOVEMENTS
1200
1990 2000 2005 2006YEAR
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Business HelicopterIntegral Part of the Business
Travel Option

• Huge advance in safety, noise reduction
  capability in last decade
• Todays products 8EPNdb quieter than
  yesterdays
• Safety with best practice equivalent to best
  commuter airlines
• Advanced avionics
• Improved performance
• Enhanced all weather capability
• Enhanced Airworthiness
• Use of Simulators
• Appropriate choice for short range point-to-point
  flights

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BusAv is a Nice Neighbour

• LHR 80 movements/hr 16 hrs/day
• FAB 5 movements/hr 12 hrs/day
• BusAv much quieter than larger scheduled aircraft
• More noise to community from 747s out of LGW
  than local aircraft movements
• BusAv cleanest quieter than HGV with fewer
  movements
• Bizjet 65 dBa _at_ 450 meters
• HGV 90 dBa _at_ roadside
• BusAv represents 6 of traffic in Europe but lt 1
  of emissions
• BusAv fleet in Europe is one of the youngest,
  cleanest and quietest in the world
• We should be in every airports business model

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BusAv in EuropeUtilisation is Growing
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BusAv in EuropeUtilisation is Growing
2005 6.3 8.9
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BusAv is SafeGlobal Fatal Accident Rate /
100,000 Departures by Operator Type

• Operator Type Fatal Accident
  RateCorporate 0.07Scheduled Airlines
  Operating 0.09Large Aircraft (gt 60,000
  lbs)All Business Jets 0.22Non-Scheduled
  Other 0.26Operators of Large Aircraft (gt
  60,000 lbs)

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Way Ahead

• BusAv needs fair equitable access to airports
  and airspace in Europe
• As FAB and LCY have shown, BusAv can be
  successfully accommodated at both dedicated and
  multi use airports
• BusAv seeks value for money rather than minimum
  price
• BusAv should represent a useful addition to your
  revenue stream
• Local National economies need BusAv
• A force multiplier for competitiveness,
  productivity and employment

. / . . .
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Way Ahead

• BusAv is growing in Europe at 6 / year
• Adequate provision must be made for an essential
  and growing part of the aviation infrastructure
• BusAv is the fastest growing segment in Europe
• Honeywell forecast a European business fleet of
  4000 aircraft by 2015

. / . . .
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Way Ahead

• BusAv is an industry that helps itself and
  delivers on its promises
• Farnborough LCY Luton
• Biggin Hill Stansted Northolt
• BusAv is the cleanest quietest member of the
  aviation community
• Business Helicopters are an integrated part of
  BusAv and are getting quieter and safer
• If BusAv is not in your current Business Model it
  should be!

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