Europe general aviation market – growth, trends, covid-19 impact, and forecasts (2022 – 2027)

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The European general aviation market is projected to witness a CAGR of 5. 15 % during the forecast period (2022 – 2027). The aviation sector in the European region has witnessed a severe impact due to the COVID-19 pandemic.

New York, Feb. 07, 2022 (GLOBE NEWSWIRE) — announces the release of the report “Europe General Aviation Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – Similar to scheduled services, the non-scheduled operations also decreased significantly in 2020 (business aviation decreased by about 29%), which has affected the deliveries of general aviation aircraft. However, in 2021, the demand for charter and private travel increased significantly, and the deliveries increased to pre-COVID-19 levels.

The demand for charter and private travel increased, as the travelers who could afford private travel abandoned commercial flying for the perceived safety and convenience of private travel in the region. Most of the countries in Europe opened tourist hotspots for vaccinated travelers, resulting in a rebound in tourism activities in 2021. This increase in travel and tourism in the region is anticipated to propel the growth of the market in the coming years.

Also, the European Union Aviation Safety Agency (EASA) has been undertaking various initiatives to promote general aviation activities in the region. These measures are expected to mitigate a majority of the traditional challenges faced by the general aviation operators in Europe, thereby helping the growth of the market studied.

Companies are investing in the development and certification of new generation aircraft models with enhanced features to attract potential customers. The aircraft OEMs are focused on the development of fuel-efficient aircraft engines and designs to comply with the stringent emission norms being enforced across Europe. The advent of new models is likely to increase the competition among the existing players in the market and the availability of options for the customers, thereby driving the growth of the general aviation market in the region.

Key Market Trends

The Business Jet Segment is Anticipated to Witness the Highest Growth

The business jets segment of the European general aviation market currently dominates the market. It is expected to continue its dominance during the forecast period, primarily due to relatively higher deliveries of business jets and their higher cost compared to other types of general aviation aircraft. The business jet utilization rate in Europe decreased by 29.3% in 2020 compared to 2019. However, business operations increased significantly in 2021 compared to 2020 due to significant growth in flight activity to leisure destinations. Also, the growth has not been consistent across the year, as several months in 2021 saw a drop in demand compared to 2019 levels. That is expected to improve in 2022 with the opening of more routes. In Europe, deliveries of new business jets declined in 2020 and again increased in 2021 with Pilatus PC-24 and Bombardier Global 7500 aircraft being the best-selling business jets 2021. Europe is a major market for charter service providers. These providers maintain a significantly large fleet of business jets to fly to North America and the Middle East & Africa. According to the major charter service providers in Europe, demand increased significantly toward the end of 2021 and managed to surpass 2019 pre-pandemic levels of traffic. Business aviation traffic has been approximately 20%-30% more than 2019 since August 2021. Due to such strong demand, the charter jet service companies are expanding their fleets to meet the growing demand. For instance, in July 2021, Flexjet, part of the Directional Aviation family, received an Air Operator Certificate (AOC) for Malta as part of its expansion in the European region. The aircraft operator increased its fleet in Europe by 40% in the first half of 2021. Such developments are anticipated to drive the business jets segment of the market during the forecast period.

The United Kingdom is Expected Witness Highest Growth During the Forecast Period

The United Kingdom is anticipated to witness the highest growth in Europe general aviation market during the forecast period. The post-Brexit scenario of business aviation has changed and provided an opportunity for government agencies, industry players, and associations to work together to improve the business aviation environment in the country. The demand for business aviation has recovered to a certain extent, and there has been an increase in the number of new owners entering the market. With the increased demand for business aviation, new companies are expanding their presence in the country. In this regard, Eclipse Air Charter announced in October 2020 that the company opened a new international headquarters in Mayfair, London, due to increased demand for internal tourism. In the coming years, the company plans to expand its presence further in the European region. The aircraft operators are also expanding their fleet of business jets and helicopters. For instance, in May 2021, Yorkshire Air Ambulance announced that it would be replacing its two existing helicopters with a new H145 D3 model. Of the two new helicopters, the first is expected to arrive in Yorkshire in Spring 2023, with the second in summer 2023. Also, the United Kingdom is anticipated to begin the deployment of its electric air taxis during the forecast period. Such developments are anticpated to drive the growth of the general aviation market in the United Kingdom.

Competitive Landscape

The Europe general aviation market is dominated by players such as Bombardier Inc., General Dynamics Corporation (through Gulfstream Aerospace Corporation), Embraer SA, Leonardo S.p.A., and Pilatus Aircraft Ltd. The companies are investing in the development of new generation aircraft models with enhanced features to attract new potential customers. In this regard, in May 2021, Dassault Aviation unveiled the Falcon 10X, an all-new Falcon jet with a range of 7,500 nautical miles at Mach 0.85. According to the company, the aircraft has the largest cabin in its class and can accommodate four-cabin zones of equal length. The company also allows its customers to customize the interior like an expanded dining/conference area, a dedicated entertainment area with a large-screen monitor, etc. The aircraft is expected to enter service by the end of 2025. The companies are also investing in the development of eco-friendly aircraft. Commercial companies, charter operators, and other aircraft operators are acquiring new aircraft to enhance their operations. For instance, in November 2021, Airbus Helicopters announced that the company delivered the first five-bladed H145 helicopter to HTM Helicopters equipped with a powerful hoist, floatation equipment, and a cargo hook. Such introductions of new aircraft models and the partnerships of aircraft operators and aircraft OEMs are anticipated to help the companies increase their market shares.

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