European Business Aviation Market Analysis 2016 with a focus on France and the marketing of the new disruptive marketplaces for private flights (PrivateFly & Victor). Analysis and Suggestions which are my own. © 2016, Emeric Delalandre, ALL RIGHTS RESERVED.

1. EUROPEAN BUSINESS
AVIATION MARKET
Emeric Delalandre
edelala@ncsu.edu / +33 (0)688626339
March 11th 2016

2. $18.6 trillionEuropean Business Aviation Industry Value in 2014 (2nd largest market after North America)
+ 2,700 private jetsEuropean Business Aviation Fleet in 2014 (2nd largest fleet after North America: +12,000 aircrafts)
€ 3,950 / hourEuropean Hourly Rate in 2014 with a Cessna Citation XL(S) (€ 3,440 / hour in North America)
Sources: PrivateFly & Market Forecast, 2015-2024, Bombardier Aircraft

3. + $20 billion / year
Business Aviation generates to the European Economy
+ 800 operators
and around 4,000 business aircrafts (turboprops & jets)
+ 160,000 people
Business Aviation employs thousands of Europeans
Source: Business Aviation State of the Industry 2014, EBAA

4. Popular Private Jet
Routes in Europe
Paris - Le Bourget
Geneve - Cointrin
Nice
London - Luton
& Farnborough
Moscow - Vnukovo
Zurich
Milano - Linate
Roma - Ciampino
Wien - Schwechat Donetsk
Kiev - Zhuliany
▪ Milan Linate - Roma Ciampino
→ 130 RT/month - 1h
▪ Paris Le Bourget - Geneva
→ 120 RT/month - 50min
▪ Geneva - Nice
→ 70 RT/month - 40min
▪ Paris Le Bourget - Nice
→ 67 RT/month - 1h20min
▪ Moskow Vnukovo - Nice
→ 55 RT/month - 3h30min
Source: PrivateFly

5. Business Jet European
Market Segmentation
Source: Market Forecast, 2015-2024, Bombardier Aircraft

6. International Business Jet
Market Shares
▪ Performing manufacturers
→ Bombardier
→ Gulfstream
▪ Future business drivers
Source: 2014 General Aviation Statistical Databook & 2015 Industry Outlook, GAMA

7. France Business Aviation
Market Insights
11% of the french
aviation market
in movements is a
result of private flights.
150+ private flights
per day on average
with most of them from
and to
Paris le Bourget has 65
daily departures
of private flights on
average.
Nice : 40, Cannes: 14
+80 Business Aviation
Operators
Unijet, Aerovision,
Dassault Falcon Service.
+310 Aircrafts
is a local private jet service.
€2,400/hour RT
€4,000/hour OW
Sources: Eurocontrol, Amstat, Aircharterguide.com, EBAA
Cessna Citation Mustang
44% 27% 13% 15% 1%
84%

8. THE MEANS OF BOOKING
A PRIVATE FLIGHT
CHALLENGES
Process savings - connecting quickly
the customer and the operators
Overcapacity - a €1.9 billion market
Empty Legs - a €1.65 billion market
Source: Business Aviation State of the Industry 2014, EBAA
Final User Broker 1
Broker 2
Broker 3
Operator 1
Operator 2
Operator 3
Personal Assistant

9. THE COST OF A
PRIVATE JET
CHALLENGES
Handling costs at the Airport
Fuel costs
Airfield costs
Source: Quarterly Business Aviation Market Indicators: Q4-2015, EBAA
100%
39%
25% 28%
5%
3%
Total
operational
costs
Handling
costs at the
Airports
Fuel costs Airfield
costs
Airfield
passengers
fees
Passengers
Taxes

10. New disruptive
accessibility models
Cash
commitment
Price
comparison
Contract
length
Full Ownership
Huge Initial Investment
+ Management Fees +
Flight Costs
Fixed rates Aircraft lifetime
Fractional
Ownership
Large Initial Investment
+ Management Fees +
Flight Costs
Fixed rates 2 or 3 years
Jet Card Contract costs Fixed rates 1 year
Charter Pay as you go Fixed rates No contract
Comparative
Marketplaces
Pay as you go Lowest Market rates No contract
Connecting customers with available aircraft
Quicker, more flexible, more value-oriented more transparent Source: PrivateFly

11. The private jet
luxury industry
TRANSPORTATION EXPERIENTIAL
Automobiles, Marine, Aircraft,
Recreational Vehicles,
Professional Services
Hospitality, Home, Travel,
Activities, Sports, Real Estate,
Personal Health Management
PRIVATE
AVIATION
CHARACTERISTICS OF LUXURY
RARITY EXCELLENCE EXPENSIVENESS TIMELESSNESS
HONESTY TAILORED PLEASURABLE EXPERIENCE
Sources: Beau Fraser, Luxury Daily (2014) & Shock of the New Chic, The Boston Consulting Group (2014)

12. THE PRIVATE JET
USERS
WHO ?
Governments
Corporations
Wealthy Individuals
Special Missions
FOR WHAT ?
Excellence Flexibility Convenience Time Savings Cost Savings
Deal facilitation Privacy Stress Savings Perceived Safety
WHY ?
Business
Work
Tourism
Experience
FLYING PRIVATE IS A
LUXURY
VALUE FOR USERS
PRICE SPEED SERVICE

13. PrivateFly and Victor are multi platform online marketplaces for private jet charter.
Search for a flight
The customer enter an itinerary
and its requirements for a
private flight.
Compare quotes
The technology provides to the
customer the different options
available.
Book a flight
The customer compare and
book a flight online or by
interacting with a specialist.

14. Private Jet Marketplaces are a game-changer
in a disruptive shared economy
Technology
tracking real-time location & availability
optimized comparison
instant quotes
Network
+7,000 accredited aircrafts
international presence
related partnerships
Service
full VIP experts available 24/7
consistent and relevant brand
excellence as a luxury intermediary
TECHNOLOGY IS CHANGING THE MARKET
The business aviation is heavily brokered
The business jet value is going to be more recognised
BUSINESS MODEL DIFFERENTIATION

15. DEVELOPMENT OPPORTUNITIES
➔ SIMPLIFICATION EFFORTS ON THE OFFER
➔ STRATEGIC PARTNERSHIPS IN TECHNOLOGY & TRAVEL
➔ MARKETING & BRANDING
➔ INTERNATIONAL EXPANSION
➔ 360° EXPERIENTIAL LUXURY TRANSPORTATION OFFER
Short
Term
Medium
Term

16. Simplification efforts
on the offer
Private Jet Activity ?
Value for customer ?
Contact ?
For individuals or corporations ?
Empty legs, Memberships or flights ?

17. Simplification
efforts on the
offer
Focus on what
really matters

18. Strategic partnerships
in technology & travel

19. Marketing & Branding

20. Marketing & Branding
Identity - Storytelling
Why does
What does
What does
exist ?
aspire to achieve ?
stand for ?

21. Marketing &
Branding
Focus on what
really matters
PRICE.SPEED.SERVICE.
Not only for the users. Think Stakeholders.
One color.
One font.
One logo, app & others.
Luxury

22. Marketing &
Branding
Focus on what
really matters

23. Future
outlook.
PRICE SPEED SERVICE
Growth of the global
business aviation driven
by innovation and a
recovery of the global
economy
Consolidations of the
aircraft manufacturers,
private jet brokers and
operators
Competition on the
ability to understand the
customer behavior
changes

24. Private Jet Marketplaces and Technology
are disrupting the private jet industry
Process innovation.
Product innovation.
PRICE SPEED SERVICE
time
performance
2016
product
service

25. Thanks!
You can reach me at :
edelala@ncsu.edu
+33 (0)688626339
Need inspiration.. #ASKGARYYVEE
Credits: Sources quoted on related slides