News and Insights
Ionic Insights: The Business Jet Fleet in Spain
Welcome to the latest edition of Ionic Insights in which we focus on the business jet fleet in Spain.
We analyse the size, composition and age of the installed fleet, whilst simultaneously investigating the most numerous OEMs, registries, operators and base locations.
Background
With a population approaching 50 million, Spain is the eurozone’s fourth largest economy and is a leader in the fields of construction (six of the ten largest global transportation construction firms are Spanish), energy, automotive manufacturing and textiles. Tourism also remains important, with Spain being the second most visited country in the world.
Analysis
Compared to neighbours France and Italy, Spain has a relatively small installed business jet fleet of 64* aircraft (*Source: AMSTAT, March ‘24), over half of which are based in the vicinity of the capital, Madrid.
Light/Very-light aircraft are by far the most numerous. It is therefore of no surprise that Textron (Cessna) is the largest OEM by fleet size; its aircraft alone making up over sixty percent of the entire fleet.
As Spanish companies have expanded internationally (most notably to Latin America, where Spain is the second largest foreign investor, after the United States) so has the country’s appetite for ultra-long-range aircraft, which now represent over one in five of all aircraft. The Bombardier Global family is particularly popular.
Overall, the average age of the fleet is a comparatively old 20 years; with 86% percent of the fleet being registered domestically, EC-.
The largest domestic operator is Madrid-headquartered Gestair.
Opportunities for Financing
Given that fifty percent of all aircraft are in the Light/Very-light category, the opportunities for international lenders are relatively slim; however, the slow but steady increase in the ownership of large cabin, ultra-long-range aircraft will attract the interest of private banks and cross-border asset financiers.
See the following slide for a detailed analysis of the fleet:
Ionic Aviation features in latest edition of Aviation Turkey magazine
Ionic Aviation is proud to announce that a past edition of Ionic Insights was featured in the most recent issue of Aviation Turkey magazine (Volume 5, Issue 21, Year 2023).
The article focussed on the installed business jet fleet in Turkey and was originally published on this website in July 2023.
The content can be viewed via the link below:
Ionic Insights: The Business Jet Fleet in India (November 2023)
This edition of Ionic Insights focuses on the business jet fleet in India. It has been a time-consuming and complexed edition to produce!
We analyse the size, composition and age of the installed fleet, whilst simultaneously investigating the most numerous OEMs and base locations.
Background
With a population exceeding 1.4 billion India is now considered to be the world's most populous country.
The country’s economy is also ranked fifth largest in the world with the biggest industry being retail, which makes up nearly twenty-five percent of the nation’s GDP. Whilst traditional industries such as agriculture and mining are still hugely significant, the IT industry continues to surge and now generates over $200 billion in annual revenue.
It is the international nature of many of these industries and a burgeoning UHNW class that is driving demand for business aviation.
Analysis
India boasts a substantial installed business jet fleet of 148* aircraft (*Source: AMSTAT, November ‘23), forty percent of which is based in the New Delhi area.
Midsize and Super-midsize aircraft dominate and together represent four out of every ten aircraft, with legacy Hawker-Beechcraft and Cessna-Textron aircraft each making up approximately 18% of the fleet.
Bombardier (including Learjet) is the largest OEM by fleet size with roughly 28% of the installed fleet. The ultra-long range Global (all variants) is particularly popular.
Overall, the average age of the fleet is a comparatively young 15 years, with 96% percent of said fleet being registered domestically (VT-).
Opportunities for Financing
To date the financing of business aircraft within India has largely been the preserve of the private banks. However, this is beginning to change and the market is increasingly attracting the attention of international asset-based financiers.
Challenges do still remain, though.
Unlike the finance and leasing of commercial airliners, ensuring the involvement of a third-party manager/operator under tripartite management agreement remains crucial; but perhaps the most significant concern is that whilst India ratified the Cape Town Convention in 2008 it is still to pass it in to law.
Consequently many lenders and lessors, who had their fingers burned as a result of the collapse of Kingfisher Airlines (and others) over a decade ago, were last year frustrated by the granting of bankruptcy protection to budget airline GoFirst, where they again found that they were prevented from recovering their assets in a timely and efficient manner.
See the following slide for a detailed breakdown of the fleet:
Source: AMSTAT, November 2023.
Ionic Aviation to attend NBAA-BACE 2023
Ionic Aviation is looking forward to attending NBAA-BACE in Las Vegas, Nevada from 17-19 October.
NBAA is the world’s largest business aviation event where industry professionals from all over the world come together to connect, network and explore the possibilities of future business and collaboration over the course of three event-filled days.
Should you wish to connect at the show do not hesitate to contact Ionic MD, Graeme Shanks, directly.
Ionic Insights: NBAA-BACE 2023: The Business Jet Fleet in Nevada (October 2023)
To coincide with NBAA-BACE taking place in Las Vegas from 17-19 October, this edition of Ionic Insights focuses on the business jet fleet in Nevada.
We analyse the size, composition and age of the installed fleet, whilst simultaneously investigating the most numerous OEMs, owners and base locations.
Background
The seventh largest state by land mass, Nevada has a population of a little over three million, half of whom reside in the Las Vegas metropolitan area.
Whilst the traditional foundations of Nevada’s economy - including mining and agriculture - remain important, they are now overshadowed by the manufacturing, government and tourism sectors. In fact, as of 2022 the largest industries by revenue were tourism ($317 billion) and casino-hotels ($29 billion).
Analysis
Nevada boasts a substantial installed business jet fleet of 227* aircraft (*Source: AMSTAT, September ‘23), nearly eighty percent of which are based in the wider Las Vegas area.
Midsize and Super-midsize aircraft dominate and together represent four out of every ten aircraft. It is not a surprise, therefore, that Cessna-Textron is the largest OEM by fleet size with almost one-quarter of the installed fleet; the CJ3 and CJ3+ are particularly popular.
Gulfstream boasts a similarly large fleet, with the G450 and G550 being the most numerous types.
Given the significance of tourism, it follows that a number of the casino-hotel groups are the largest owners of business aircraft. This includes Las Vegas Sands (with its fleet of nine Airbus, Boeing and Gulfstream aircraft) and MGM Mirage (with its six Embraer and Gulfstream jets). Despite this, corporate airliners (‘bizliners’) such as the Airbus Corporate Jet, Boeing Business Jet and Embraer Lineage product lines, still make up less than 6% of all aircraft.
Overall, the average age of the fleet is a little under 18 years; 97% percent of which is registered domestically (N).
See the following slide for further information:
Source: AMSTAT, September 2023.
Ionic Insights: The Business Jet Fleet in Turkey (July 2023)
Welcome to the latest iteration of Ionic Insights! In this edition we focus on Turkey.
We analyse the size, composition and age of the installed business jet fleet, whilst simultaneously investigating the most popular aircraft registries, OEMs, operators and base locations.
Background and Economy
A large and mountainous country, Turkey stretches about 400 miles from north to south and 1,000 miles from east to west. The capital city is Ankara, whilst the largest city is the port of Istanbul.
The Turkish economy has, over recent decades, been transformed from one predominantly focused on agriculture to one in which manufacturing and services are now the fastest-growing sectors. Services (including tourism) now employ about one half of the workforce, while agriculture and industry each employ one quarter.
Manufacturing is largely centred around the major conurbations of Istanbul and Ankara. Key exports include textiles, iron and steel, fruits and vegetables, livestock, tobacco and machinery. About fifty percent of all trade is with Europe.
Whilst roads remain the most important method of transportation, the state airline and others provide air links through Istanbul, Ankara and Izmir, and there is an internal network linking these cities with more than a dozen other regional hubs. Airports on the Aegean and Mediterranean coasts cater to the burgeoning tourist industries there and business aviation is playing an increasingly important part.
Fleet Analysis
Turkey boasts a sizeable installed business jet fleet of 125* aircraft (*Source: AMSTAT, July ‘23), over half of which are based in Istanbul. Given the country’s location at the crossroads of Europe and the Middle East and its overall scale, midsize/super-midsize aircraft dominate and currently represent over one third of all aircraft.
Bombardier (including Lear) is the largest OEM by fleet size, with the Challenger 605 and Global models being particularly popular. Cessna-Textron comes second and dominates the light/very-light jet segment. There are only five corporate airliners (including ACJ and BBJ aircraft) in service, all of which are owned and operated by government/military bodies.
Overall, the average age of the fleet is a little over 14 years; and over eighty percent of all aircraft are registered domestically, TC-.
The largest domestic aircraft operators are Genel Havacilik, RedStar, Swan Aviation and Black Eagle.
See the following slide for further information:
Source: AMSTAT, July 2023.
Ionic Insights: The Business Jet Fleet in Switzerland (May 2023)
To coincide with EBACE 2023 taking place in Geneva next week, this edition of Ionic Insights focuses on Switzerland.
We analyse the size, composition and age of the installed business jet fleet, whilst simultaneously investigating the most popular aircraft registries, OEMs and base locations.
Background
Located at the heart of Europe and with a population of a little under 9 million, Switzerland has the second highest per capita GDP in the world (USD 86,850 as of 2020 - Source: IMF).
Almost three quarters of Swiss GDP is generated by the services sector, with industry generating 25% and agriculture the remaining 1%.
From banks to aircraft maintenance organisations, operators to OEMs (most notably Stans-based Pilatus), Switzerland continues to play a leading role in the business aviation sector.
Analysis
Switzerland boasts a substantial, installed business jet fleet of 150* aircraft (*Source: AMSTAT, May ‘23), nearly forty percent of which are based in the country’s largest city and financial centre of Zurich.
Given Switzerland’s geography and the international footprint of much of the country’s large ultra-high-net-worth community and businesses, Ultra-Long-Range aircraft dominate and in fact represent nearly four out of every ten aircraft.
Dassault is the largest OEM by fleet size, with the Falcon 2000, 7X and 8X models being particularly popular. Cessna (Textron) comes a close second and dominates the Light/Very-Light Jet segment. Contrary to belief, corporate airliners (‘Bizliners’) such as the ACJ and BBJ product lines represent only 3% of all aircraft.
Overall, the average age of the fleet is younger than 12 years; fifty percent of which are registered domestically (HB-).
The largest aircraft operators are Global Jet, Jet Aviation and Albinati Aeronautics.
See the following slide for further information:
Source: AMSTAT, May 2023.
Ionic Aviation will be attending EBACE in Geneva from 23-24 May. We look forward to seeing you there!
Ionic Insights: The Business Jet Fleet in Italy (January 2023)
In this eighth edition of Ionic Insights we focus on Italy. We analyse the size, make-up and age of the installed business jet fleet, whilst simultaneously investigating the most numerous aircraft registries, manufacturers and base locations.
Analysis
With a total of 85* aircraft (Source: AMSTAT, January ‘23), Italy possesses one of the largest business jet fleets in Europe. Approximately two-thirds of all aircraft are based in the north and are concentrated in and around the cultural, financial and automotive hubs of Milan and Turin. Further south, the capital city of Rome is home to 20% of the fleet.
Light/very light and midsize/super-midsize jets dominate. In fact, they represent approximately two-thirds of all aircraft. It is no surprise, therefore, that Cessna (Textron) is the largest OEM by fleet size.
At the other end of the spectrum, ultra-long range aircraft represent only 14% of the fleet; the largest manager of large cabin and ultra-long range jets is Sirio S.p.A. (a subsidiary of Directional Aviation) in Milan.
Overall, the average age of the fleet is 18 years.
Finally, whilst 80% of all jets are registered domestically (I-), it is worth noting that Italy has not yet ratified the Cape Town Convention and self-help remedies are not presently permitted under Italian law.
See a summary in the following slide:
*Source: AMSTAT, January 2023
Ionic Insights: The Business Jet Fleet in the UAE (November 2022)
In the run-up to next month’s MEBAA Show in Dubai, this seventh iteration of Ionic Insights focuses on the United Arab Emirates. We analyse the size, composition and age of the installed business jet fleet, whilst simultaneously investigating the most numerous aircraft registries, operators and base locations.
Market Summary
The UAE has a population of a little over ten million but already boasts the region’s largest fleet of business aircraft. With a total of 108 jets*, the fleet is now twenty-five percent larger than that of its larger neighbour, Saudi Arabia. Over half of all aircraft are based in the business, tourism and cultural hub of Dubai, whilst a quarter are based in the capital city of Abu Dhabi.
The dominant aircraft types are in the ‘heavy’ (ultra-long and corporate airliner/bizliner) segment; these represent over two-thirds of all aircraft.
Whilst Bombardier is the largest OEM by fleet size with 30% of the fleet, it is notable that the Boeing Business Jet (BBJ) product line makes up over one fifth of all aircraft. This includes a total of twenty-four BBJ1, BBJ2, BBJ3, 747, 777 and 787 variants that are operated for the governments of Dubai and Abu Dhabi by Dubai Air Wing and Presidential Flight respectively, and Royal Jet.
Unsurprisingly, light jets make up less than 6% of the fleet. The largest owner-operator of light jets is Emirates Flight Training Academy in Dubai, with a total of five Embraer Phenom 100EV aircraft. Interestingly, the Cessna Citation product line does not currently feature.
Overall, the average age of the fleet is 13 years; whilst a little under half of all aircraft are registered domestically, A6.
Opportunities for Financing
The financing of bizliners, particularly widebodies, for UHNW clients is most commonly driven by a handful of international private banks who do so on the basis of a client’s wider wealth relationship. That being said, asset and credit-based solutions exist for narrowbody variants such as BBJs, ACJs and the Embraer Lineage, albeit at more conservative advances and with faster amortisations than might otherwise be available for other new and pre-owned business aircraft.
A summary of the fleet is included in the following slide:
*Source: AMSTAT, Nov 22
Ionic Insights: The Business Jet Fleet in Nigeria (September 2022)
In this sixth edition of Ionic Insights we focus on Nigeria. We analyse the size, make-up and age of the installed business jet fleet, whilst simultaneously investigating the most numerous aircraft registries, manufacturers and base locations.
Market Summary
With over 200 million citizens Nigeria has the largest population and economy in Africa. The country produces over 2% of the world’s oil; but whilst it now represents a relatively small part of the country’s overall economy, Nigerian government revenues are still heavily dependent on the sector. In addition, the oil industry has driven the growth and expansion of its large fleet of 119* helicopters.
With respect to business jets, Nigeria boasts an installed fleet of 80* aircraft and is second only to South Africa in Africa in terms of overall size. Bombardier is the largest OEM with 34% of the fleet. Legacy Hawker-Beechcraft equipment makes up 28%, and Embraer 14%.
The dominant aircraft categories are the mid/super-midsize and large cabin segments; with the average age of the fleet being 18 years. Not surprisingly, nearly two thirds of all aircraft are based in Lagos, Nigeria’s largest city and the country’s financial, economic and cultural hub.
Business Jet Financing
Whilst domestic sources of finance are available, securing competitive aircraft financing by international asset and credit-based lenders and private banks (e.g., those requiring assets under management or ‘AUM’) remains challenging, but is by no means impossible. The hurdles are however not insubstantial – the country currently ranks 154 out of 180 on Transparency International’s Corruption Perceptions Index; internal security remains an issue; and two thirds of the fleet is registered domestically (5N).
Credit, jurisdictional risk and registration aside, the willingness of owners to retain, via tripartite agreement with lender, the services of an experienced and independent aircraft management company (such as ACASS, ANAP Jets, Empire Aviation, Execujet or Skyjet, amongst others) in the day-to-day management and operation of their aircraft is a standard requirement of those willing to finance aircraft there.
This analysis is summarised in the following slide:
*Source: AMSTAT, Sep 22