A Global Business Indicator: Business Aviation Sees Gradual Recovery in Q2 2015

JSSI Business Aviation Index Indicates Flight Hours Approach Pre-Crisis Levels

Aug 11, 2015, 08:30 ET from Jet Support Services, Inc.

CHICAGO, Aug. 11, 2015 /PRNewswire/ -- Jet Support Services, Inc. (JSSI), the world's leading provider of maintenance support and financial services to the business aviation industry, has released its Q2 2015 Business Aviation Index, which tracks flight hours for business aircraft by region, industry and cabin type. According to JSSI's Q2 2015 Business Aviation Index, global flight hours grew 4.9% Quarter-over-Quarter (QoQ). By percentage of peak usage – JSSI concluded business aviation is operating at 83% of the sector's 2008 peak levels—a 4% increase from the previous quarter.

"Q2 2015's flight activity is demonstrative of improving economic conditions in key business aviation markets around the world," said Neil W. Book, JSSI's President and Chief Executive Officer. "Additionally, the strong growth in more cost-efficient, small cabin planes speaks to how operators are using 'mission appropriate' aircraft to run their businesses."

JSSI Index: By Peak Usage

Q1 2008 marked this decade's highest recorded activity rate, and, as of Q2 2015, JSSI determined monthly usage to be 27.75 hours per aircraft or 83% of the Q1 2008 peak of 33.45 hours.

"Globally, business aviation continues to draw closer to pre-crisis levels.  Utilizing a business jet allows business leaders to reach markets that are not reachable with the airlines, at a pace the airlines can't fathom.  While we haven't hit 2008 levels, 2015 is shaping up to be a very strong flight hour year and we expect to see this trend continue for the rest of 2015 and into 2016," remarked Book.    

JSSI Index: By Aircraft Type

Segmenting flight hour data by aircraft type provides direct insights into the spending trends of business aviation users. Helicopters and small cabin aircraft continue to be growth areas, as both experienced moderate QoQ increases in flight hours.

Aircraft Type

Helicopter

Large Cabin

Medium Cabin

Small Cabin

QoQ Change

15.1%

3.1%

3.0%

7.1%

YoY Change

-10.3%

-5.2%

1.7%

3.9%

"During the last quarter we saw a notable increase in flight hours across the board.  And while year-over-year we've seen some diminution in the use of helicopters and larger business jets, the medium and small cabin aircraft more than made up for the slide. As we saw in the first quarter of 2015, corporate flight departments leveraged smaller aircraft, indicating more regional business and, in the same vein, lower fuel costs likely encouraged more price sensitive operators to fly more," continued Mr. Book.

JSSI Index: By Region

When looking at index data by region, from Q1 2014 to Q2 2015 business aviation grew in all but two markets – Africa and South America.  Surging back from a rough first quarter, the Middle East experienced the highest regional growth with an expansion of 20.4%.  

Region

Africa

Asia-Pacific

Central America

Europe

Middle East

North America

South America

QoQ Change

-5.3%

3.8%

1.7%

16.6%

20.4%

2.4%

-11.9%

YoY Change

-12.1%

-2.6%

-2.4%

2.5%

-13.1%

0.3%

-11.1%

JSSI Index: By Industry

By industry, Business Services (13.3%) and Manufacturing (12.1%) were top performers with double digit growth in the last quarter. Conversely, Manufacturing (-19.1%) and Consumer Goods (-15.3%) shrank significantly from Q2 2014.

Industry

Aviation

Business Services

Construction

Consumer Goods

Financial Services

Healthcare

Manufacturing

Power & Energy

Real Estate

QoQ Change

7.9%

13.3%

1.7%

-1.9%

-10.3%

6.6%

12.1%

1.6%

6.1%

YoY Change

3.4%

7.0%

11.4%

-15.3%

-10.0%

-5.9%

-19.1%

-8.0%

-5.1%

Book concluded, "The last quarter saw a dramatic turnaround for flight hours in the manufacturing sector while, year-over-year, the construction sector experienced strong gains.  With positive growth on all fronts, business services also ramped up use of this vital business tool."

About Jet Support Services, Inc. 
For more than 25 years, JSSI has been the only hourly cost maintenance provider covering virtually all makes and models of business aircraft, engines and APUs. JSSI provides its customers with comprehensive, flexible and affordable financial tools for managing the often unpredictable costs of operating and maintaining nearly all types of turbine-powered aircraft, including jets, turbo-props and turbine-powered helicopters. As the creator of the revolutionary Tip-to-Tail® Program, JSSI is the only single source provider of this trademarked service. JSSI serves customers globally and manages maintenance services through its worldwide infrastructure of certified technical advisors. For more information, go to www.jetsupport.com.

 

SOURCE Jet Support Services, Inc.



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