Barclays: Business aviation almost at pre-crisis levels
The business aviation space has largely recovered to pre-recession levels, with the market up in the US and Europe over June according to a new report released by Barclays' equity research division. Midsize and large-cabin jets are fully recovered according to the analysts with light jets still continuing to underperform.
"After nearly a decade at trough levels, key business jet market indicators now all signal improvement" commented David Strauss, Aerospace Analyst at Barclays. "Including much lower used inventory levels along with stable used pricing, increasing flight activity, and higher corporate capital expenditures."
Similar findings have been seen over BEAM VIP, the business jet platform letting subscribers book flights directly from operators without paying broker commissions, which can amount to up to 50%. Whereas flights on entry level business jets across Europe remain low compared to 2006/2007 rates, operator pricing on midsize and heavy jets is catching up rapidly to pre-recession levels, propelled by strong demand.
Despite this rapid recovery in the private aviation space, yachting, a similar industry by pricing has failed to attract any growth, shrinking over the past decade. Whereas jets were quick to adopt a new, technology-led framework, yachting attempted to remain opaque for longer than possible, analysts say, leading to a slowdown in its activity.