What is Happening in the Private Aviation Market in 2016?

If statistics are to be believed, the business aviation market in Europe is "treading water," while the Russian segment is faring even worse.

What is happening in the private aviation market in 2016? Is the demand for aircraft rentals growing or declining? How does the demand compare to the previous year?

If statistics are to be believed, the business aviation market in Europe is "stagnating," while the Russian segment is faring even worse. In the first quarter of this year, "Vnukovo-3" serviced 3,525 flights and 22,303 passengers. In the same period last year (January-March), there were 3,779 flights and 23,307 passengers. Foreign companies accounted for 2,625 flights, while Russian ones handled 900 flights (official statistics from Vnukovo-3).

According to the consulting agency WingX Advance, which released a report on European business aviation activity in May 2016, overall demand remains stagnant. There are cities where the number of business aviation flights has decreased: Moscow -15%, Istanbul -16.3%, Prague -18.9%, Barcelona -9.1%, Stuttgart -14%. However, there are also cities showing good growth: Nice +10%, Vienna +12%, Amsterdam +9%, Ibiza +7%.

It is worth noting that domestic routes within Russia (Sochi, Crimea, Gorno-Altaisk) have gained significant popularity, growing by approximately 25-30% from 2015 to 2016.

Due to the cessation of direct flights to Ukraine, Turkey, and Egypt, the demand for flights to Belarus has increased by up to 40% compared to 2014. Business jets from Russia fly to Belarus and then disperse to Ukraine, Turkey, and Egypt.

The further growth or decline of the business aviation market in Russia can be tracked by the state of the economy both globally and domestically, as there is a certain correlation with a slight time lag.

What purposes do clients rent aircraft for?

Each business aviation client has their own objectives. The primary goals are business trips and leisure. Private jets save significant time on flights and transport top executives to their destinations with maximum comfort. Many rent aircraft for comfortable travel and relaxation. Clients can choose their own schedules and flight cities, even to hard-to-reach places where regular flights are infrequent. Recently, there has been a trend towards choosing vacation destinations within Russia (Sochi, Crimea). However, Russians have not forgotten about Europe.

What criteria do clients use to choose an aircraft?

Recently, the price of aircraft rental has become a decisive factor. Many clients have switched from more luxurious aircraft to a lower class. However, the year of the aircraft, type of aircraft, cabin condition, service, and reliability remain important factors.

How much does it cost to rent an aircraft?

The rental cost is calculated individually and depends on the type of aircraft (the larger and more luxurious it is, the more expensive it becomes), flight distance (the longer the flight, the cheaper the hourly rate), the number of passengers (each passenger requires a VIP terminal and VIP catering), and the duration of the aircraft's parking (the less time the aircraft is idle, the cheaper it is). This is why it is only possible to mention prices when all details related to the rental are known. A precise statement of the flight task is necessary for cost calculation (dates, number of passengers, desired type of aircraft, etc.).

What amenities are available on aircraft?

It all depends on the model of the aircraft. Progress does not stand still, and even now, business jets are equipped with: phones, high-speed internet, televisions, coffee machines, gaming consoles, high-end audio systems, showers, beds, and much more.