According to JSSI's Q3 2015 Business Aviation Index, global flight hours grew 4.3% Quarter-over-Quarter (QoQ). By percentage of peak usage – JSSI concluded business aviation is now operating at 80.7% of the sector's 2008 peak levels.
CHICAGO – Jet Support Services, Inc. (JSSI), a leading provider of maintenance support and financial services to the business aviation industry, has released its Q3 2015 Business Aviation Index, which tracks flight hours for business aircraft by region, industry and cabin type. According to JSSI’s Q3 2015 Business Aviation Index, global flight hours grew 4.3% Quarter-over-Quarter (QoQ). By percentage of peak usage – JSSI concluded business aviation is now operating at 80.7% of the sector’s 2008 peak levels.
“Q2 2015’s flight activity is, on the whole, indicative of volatility in the global business aviation markets,” said Neil Book, JSSI’s President and Chief Executive Officer. “The decline in oil prices has had a negative impact on the helicopter sector which supports offshore operations and flight hours in the Middle East. Stable economic conditions in North America and Europe are reflected in both QoQ and YoY flight hour growth. Despite this growth, third quarter business aviation is still well behind -2008 levels.”
JSSI Index: By Aircraft Type
Segmenting flight hour data by aircraft type reveals medium and small cabin aircraft, the primary choice of aircraft by midsize companies, were this quarter’s biggest growth areas, as both maintained positive YoY gains in flight hours.
|
Aircraft Type |
Helicopter |
Large Cabin |
Medium Cabin |
Small Cabin |
|
QoQ Change |
-0.3% |
0.9% |
2.2% |
8.8% |
|
YoY Change |
-15.0% |
-5.0% |
3.7% |
8.2% |
“As the U.S. economy remains strong and fuel prices remain low, owner/operators are flying small cabin aircraft more, as are midsize companies looking for both access and flexibility,” continued Mr. Book.
JSSI Index: By Region
From Q2 2015 to Q3 2015, business aviation grew across nearly every market. Africa outpaced expectations as it experienced the largest QoQ increase in over one year.
|
Region |
Africa |
Asia-Pacific |
Central |
Europe |
Middle |
North |
South |
|
QoQ Change |
24.5% |
-0.2% |
3.0% |
9.3% |
4.6% |
2.3% |
9.1% |
|
YoY Change |
12.5% |
0.7% |
12.9% |
0.5% |
-12.1% |
1.7% |
-9.7% |
Noting the African rebound, Book stated, “Many foreign investors remain bullish on growth prospects for the region and continue to utilize business aviation to access areas difficult to reach using the airlines. The strong growth also represents a rebound from a historically tough 2014, due to the unprecedented 2014 Ebola outbreak.”
“South America’s -9.7% decline in YOY flight activity reflects the weak overall state of the region’s principle economies, which the IMF predicts will enter a recession later this year,” remarked Book.
JSSI Index: By Industry
Looking at YoY trends, Business Services (12.0%) and Construction (15.6%) demonstrated encouraging double-digit growth.
|
Industry |
Aviation |
Business |
Construction |
Consumer |
Financial |
Healthcare |
Manufacturing |
Power |
Real |
|
QoQ |
5.3% |
2.1% |
2.6% |
-5.0% |
2.8% |
-3.6% |
6.0% |
0.9% |
3.6% |
|
YoY |
1.9% |
12.0% |
15.6% |
-14.8% |
-6.6% |
-3.1% |
1.7% |
-14.9% |
2.8% |
Book concluded, “Investors continue to deploy capital into the U.S. construction industry, and the sector’s growth has outpaced expectations in recent quarters. The robust flight activity in the sector is thus in line with its strong performance in recent months.”
Verticals directly involved with the oil industry (Power & Energy and Consumer Goods sectors) reduced third quarter flight hours by -14.9% and -14.8% YOY, respectively.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
