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Sat, Aug 23, 2014

JSSI: Business Aviation Rebounds In Second Quarter

Cites Gains In Manufacturing, Other Sectors As Reasons For Upturn

Following a tepid performance in the first quarter of 2014, business aviation made a strong comeback in the second quarter of the year. According to JSSI's Business Aviation Index, Q2 2014 global business aviation activity grew by 8 percent QoQ and by 3 percent year-over-year.

Jet Support Services, Inc. (JSSI) tracks the number of hours that business aircraft have flown by region, industry and aircraft type and releases it on a quarterly basis.

"After a tough first quarter, economic activity in the U.S. has picked up considerably, translating into a corresponding uptick in business aviation," said Neil Book, President & CEO, JSSI. "Consumer spending increased, leading to increases in hiring and inventory levels. With corporate investments on the rise and businesses feeling more confident about the prospects for future economic growth, it is no surprise that the use of business aircraft, as tools for generating additional business, is on the rise, as well."

At the industry level, all but the Power & Energy and Real Estate sectors experienced growth since last quarter, with many sectors experiencing double-digit percentage gains. On a year-over-year basis, however, only Aviation, Financial Services and Healthcare saw positive growth.

"The strong growth in output among U.S. manufacturers helped to boost not only the broader U.S. economy but also business aviation in that sector and beyond," Book said.

From a global perspective, every region experienced positive growth in flight activity on a quarter-over-quarter basis, including Europe, which saw the highest growth (23 percent) for the quarter. Only the Middle East/Africa saw a slight decline on a year-over-year basis.

By aircraft type, all segments grew on a year-over-year basis, with only the Single-Engine Turboprop segment lagging on a quarter-over-quarter basis.

With the onset of spring and nicer weather, helicopters saw a large increase in utilization, highlighting just how hard-hit the segment was as a result of the harsh winter conditions seen in Q1 2014.

"Because helicopters operate at lower altitudes and many lack the advanced de-icing systems that are found on jets, they often do not share the same capabilities of jets to operate in inclement weather," Book said.

FMI: www.jetsupport.com

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