Emerging Markets
Kyle Patel, founder and CEO of private jet charter company, BitLux, considers the new economies that are set to make the most out of the private aviation industry.
The private jet industry is getting more popular, in a good way. This is good news for manufacturers, operators and brokers, who are evidencing how new markets around the globe are starting to understand the real added value of this segment - utmost flexibility.
Way before the pandemic outbreak, especially in emerging markets where commercial aviation has had decades of inefficiencies, like in Nigeria or Brazil, private aviation is occupying a special place in the agenda of corporations, businesspeople, and the common traveler.
Latin America
When speaking about the private aviation market at a global scale, the first country that comes to mind is the United States. That is normal. It is the country with the largest pool of executive aircraft, the most airports dedicated exclusively to this segment and the largest related infrastructure to serve this industry. But second place? Russia, Germany, the UK, Australia perhaps? Think again. Brazil boasts the second largest amount of active private aircraft in the world, with more than 1,500.
What about Mexico, the third largest market in the world by number of active private jet aircraft? The Mexican market has great potential for several reasons, including a large domestic fleet, proximity to the US and an existence of a world-class private aviation hub in Toluca Airport.
South America, meanwhile, has other variables on the table. Although a continuously increasing market, the political shifts, which bring uncertainty and the incapacity for long-term projections, alongside shaky aeronautical authorities have somewhat decreased the overall potential of this region’s overall potential. Although the previous has not stopped major manufacturers to settle in.
Honda Aircraft chose Hangar Uno in Argentina as the official sales representative in the region, Aerocardal in Chile is the official sales partner for Gulfstream Aerospace and Pilatus Aircraft, and Brazil has a producer of its own in the world-renowned Embraer Executive Jets brand.
Nigeria
For too many years, maybe a decade, this market has been tied to luxury and excessive prices. In fact, it is still an active trend, although there is a shifting understanding within young entrepreneurs and small to medium business owners: private aviation is all about the flexibility, agility, and cost effectiveness it brings to the table. Yes, the winds are changing.
Nigeria has more than 150 active private aircraft in operation, becoming one of the fastest growing markets in the world. If you pair that with the lack of a reliable commercial airline segment, and the use of technology to support operations, there is a real opportunity for experienced charter companies with global presence like BitLux to explore the market.
The rise in activity caught the eyes of the government, which has already removed import duties on new jets and opted to not specify a time restriction for foreign aircraft in Nigeria.
Positive movement in the public-sector has been partially the result of the increased use of private aviation (driven by a lack of other competitive means for transportation). Indeed, some argue that more immediate economic development returns come from investing in the business aviation market, as opposed to building new roads or rail networks.
Whatever the case, the oil and gas industry, as well as finance and manufacturing have benefited from the amenities of the business aviation industry, landing in places not served by commercial flights, and connecting Nigerian communities that are otherwise isolated or only precariously connected.
Turboprops and technology
The rise of the turboprop aircraft is also a trend to account for, especially for shorter distances that do not justify the expenses that come with the charter of a jet. Overall, the Pilatus PC-12 and the King Air family is the perfect fit for both regions, offering a cost-efficient option without compromising general comfort and privacy. It also has the capability to land on multiple types of runways and adapt to the local air medical and cargo demands, apart from the standard executive use.
Finally, the use of technology and mobile apps for booking is not quite common on the mentioned emerging markets. Few local companies allow to charter a flight on the go, without sending an email or making a call to the sales team. This must change if private jet providers want to gain ground with new types of customers; the occasional traveler and the first-class frequent flyer thinking of making the shift to private aviation.
The future is promising for the business aviation market in Latin America and Nigeria, but for that potential to turn into long-term performance, some changes need to be accomplished, adapting to today’s customer’s behavior, more diversification, and less excuses.
BitLux provides various services across the air charter industry, but Executive Travel is one that is closest to heart. Whether you are flying for business or leisure, BitLux provides a top tier private jet service that actively exceeds expectations.
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