Download BusAv and its Value to the European Community

Perception vs Reality
The Economic Contribution of
Business Aviation
Brian Humphries CBE
EBAA President and CEO
IBAC/ICAO Dinner
Montréal
28 May 2009
Why Europe as the model?
• Faces all BusAv's Global Challenges in respect of access;
proportionate and appropriate regulation; and public image
• Clear focus on safety
• Global BusAv in a microcosm
• Recently conducted study by PriceWaterhouseCoopers
provides authoritative economic impact assessment of BusAv
on the European economy by a leading and well respected
consultancy
• Europe represents 11% of global business aviation operations
so when European economic impact is factored into the global
economy, gross value added is substantial.
Take 4 Perspectives
• The False – some Press and Officials
• The True
o
European Parliament and Commission
o
The Economist
o
The Air Traffic Service provider
The False
•
BusAv is for fat cats
o
•
BusAv is an unnecessary luxury
o
•
Actually in Europe 80% of usage is by Corporations and
governments and <3% by high net worths
Actually the industry is a major wealth and jobs creator
BusAv competes with the airlines to benefit the few over the many
o
Actually BusAv serves predominantly those city pairs poorly or not
served at all by the airlines
Value to the Business
European Commission Perspective
“General and Business Aviation provides closely
tailored, flexible, door to door transportation for
individuals, enterprises and local communities,
increasing mobility of people, productivity of
businesses and regional cohesion .”
Communication from the Commission
An Agenda for Sustainable Future in General and
Business Aviation
11 January 2008 COM (2007) 869 Final
Value to the Business
European Parliament Perspective
“General and Business Aviation complement regular
air transport by commercial airlines and this
provides specific social and economic benefits such
as increasing the mobility of citizens, the
productivity of businesses and regional cohesion.
………..is of growing economic importance.”
European Parliament resolution of 3 February 2009
on an Agenda for Sustainable Future in General and
Business Aviation 2008/2134(INI)l
Business Aviation:
Piloting the European Economy
• The Business Aviation sector contributed a total of €19.7bn
in annual gross value added (GVA) to the European
economy in 2007, accounting for approximately 0.2% of the
combined GDP of the European Union (EU), Norway and
Switzerland
• Business Aviation accounted for
more than 164k jobs across the
continent and generated combined
annual wages and salaries of
around €5.7bn.
• Total impact of Business
Aviation in France, UK &
Germany is €12.6bn, which
represents 64% of the total
industry GVA in Europe.
Safety and Security
• Top priorities for business aviation
• IBAC leads the development of best practices for global
application
o IS-BAO - Corporate operations have one of the best safety
records in the industry
o New Safety Road Map setting the course for continuous
improvement
o SMS toolkit now available to support operators in meeting
ICAO requirements
o Security guidelines tailored to the specifics of BusAv
BusAv and the Environment
•
•
•
•
Europe has one of the youngest fleets in the world
Fly to task not schedules
Almost 8% of IFR traffic but less than 1% of emissions
Full and active participant in Single European Sky ATM Research
programme(SESAR) for long-term reduction in CO2
• Do not sell seats so tonne-kilometre not an appropriate PI
o Value added rather than people carried vs. environmental impact
= sustainability
• Prepared to FULLY offset emissions BUT
o Need proportionate Monitoring Reporting and Verification (MRV)
rules
Business Aviation declined 3% in 2008
Flying where scheduled does not
Most of the traffic, most of the city-pairs
Everything but routine
From the Economic Heart
Recent Growth & Outlook
A 15% decline
would take us
back to 2005
levels.
Conclusion
• BusAv is a vital tool not a luxury
• BusAv is an additional travel option not in competition with the
airlines and predominantly serves city pairs least well served by
the airlines
• BusAv is an economic enabler for national and regional
economies
• BusAv creates Value, Jobs and Wages on a scale comparable
with other major industries such as the telecom manufacturing
industry
• BusAv is sustainable and at the very heart of economic activity
• BusAv needs fair and equitable access to airspace and airports
• BusAv is the Right Tool for Challenging Times