REPORT 2009 BUSINESS AIRCRAFT FLEET

US were having a fire sale trying to NO SURPRISES HERE quickly get rid of their business air- craft in order to avoid government and public scrutiny, countries like Brazil were turning to Business Aviation as a business solution. The result – well, we think the numbers speak for them- selves. So yes, 2009 was a slow year for Business Aviation – as expected. The World Fleet continued to grow, although at a much slower rate than past years (the world fleet grew by seven percent last year, in comparison to this year’s 4.8 percent). And yes, Europe may have been a surprise as it navigated the crisis fairly well, but only saw a 9.7 percent increase in its fleet, which although strong is almost half the size of last year’s world-lead- ing 18 percent. But the slowdowns in Europe and the US are made up for by the 15.3, 27.1 and 13.3 percent growth rates in Africa, Asia/ and South America respectively. FLEET TOTALS Ok, so we changed our minds about (As of End 2009) 2009. Business Aviation is not slowing World Fleet 29,992 down. Business Aviation is simply European Fleet 3,959 changing, shifting and going where Jet Aircraft Worldwide 17,118 business goes – building new Turboprops Worldwide 12,499 economies and ensuring that business gets done.

By Nick Klenske ust take a brief glance at the Overview J numbers and it should be blatant- Let us start from the end – or as close No surprise here. 2009 was a ly clear: the center of Business to the end as the numbers allow: slow year forBusiness Aviation is shifting. For starters, world GAMA’s 2009 Third Quarter Report on Aviation. After declaring leader USA saw its fleet decrease by Shipments. This report traditionally 2008 as “One of the Best”, 185 aircraft. On the other hand, Africa, gives us a better idea of what might be this year we here at BART are Asia, the Middle East and South expected in 2010. And as we are all for- hesitant to declare 2009 as America are all growing at exceptional ward-looking business people, we “One of the Worse”. But rates. In terms of specific countries, don’t dwell in the past but simply use the Top Ten list is nearly split between it to better navigate the future. before we tossed in the traditional western nations and such According to the GAMA report, in towel and all but wrote the emerging markets as Brazil, the first three quarters of 2009, total past year off, we took a and Venezuela. general aviation airplane shipment fell closer look at the statistics. But again, this really should not by 46.8 percent, from 2,982 units in And there, buried within the come as a surprise. Not only has the 2008 to 1,587 units at the time of the numbers we found good market been shifting away from the report’s release. Total industry billings news – and even a hint at US for the past several years – compa- were down 23.5 percent, to $13.8 bil- what may be the future of nies have been claiming that their lion. Business Aviation. Although sales are now 50 percent US and 50 “These shipment and billing figures SHIFTING the traditional power players percent “international” – but these are a result of this difficult business The marketplaces have taken a hit – with the numbers also reflect the economic cri- cycle and reflects the impact of the are turning sis. Whereas the US was hit hard – as weak economy,” said GAMA President United States actually towards Europe was the United Kingdom and, to a and CEO Pete Bunce. “However, and the emerging posting a negative rate of lesser extent, Europe – the emerging another contributing factor that has markets of Asia, growth – the so-called markets tended to fare better (with led to the disappointing year-to-date South America emerging markets are Dubai being a major exception). In numbers is the unwarranted negative and Africa. surging like never before. other words, while companies in the attacks on Business Aviation.”

28 - BART: FEBRUARY - APRIL - 2010 JET SUMMARY BY MODEL AS OF DECEMBER 31, 2009

MFG/MODEL TOTAL EUR MFG/MODEL TOTAL EUR MFG/MODEL TOTAL EUR AIRBUS A30010 CITATION CJ3 329 77 GULFSTREAM G-10022 2 AIRBUS A31021 12 CITATION ENCORE 165 13 GULFSTREAM G-15078 10 AIRBUS A318 ELITE74 CITATION ENCORE+55 6 GULFSTREAM G-200221 28 AIRBUS A319CJ 44 22 CITATION EXCEL 369 65 GULFSTREAM G-30013 0 AIRBUS A32051 CITATION I24 9 GULFSTREAM G-35011 0 AIRBUS A34010 0 CITATION I/SP29633 GULFSTREAM G-40023 0 ASTRA 1125 32 0 CITATION II 586 65 GULFSTREAM G-45016014 ASTRA 1125SP 36 1 CITATION II/SP73 19 GULFSTREAM G-50090 ASTRA 1125SPX58 3 CITATION III 195 14 GULFSTREAM G-550 239 60 BAC 1-11 18 1 CITATION MUSTANG25665 GULFSTREAM G-II 164 1 BAE 146-100 41CITATION S/II15310 GULFSTREAM G-IIB 40 2 BAE 146-200 64CITATION SOVEREIGN 279 47 GULFSTREAM G-III 183 2 BAE 146-300 10CITATION ULTRA 274 15 GULFSTREAM G-IV 212 11 BAE Avro RJ70 11CITATION V25819 GULFSTREAM G-IVSP 286 11 BEECHJET 40060 1 CITATION VI 365GULFSTREAM G-V 191 19 BEECHJET 400A 346 25 CITATION VII 118 13 HAWKER 1000A 444 707-120B 40CITATION X29821 HAWKER 1000B 7 3 -320 33 5 CITATION XLS 328 108 HAWKER 125-1A 19 4 BOEING 707-C 70CITATION XLS+35 10 HAWKER 125-1AS90 BOEING 707-E 50DIAMOND I 41HAWKER 125-1B 11 9 BOEING 720B 3 1 DIAMOND IA71 3 HAWKER 125-3A 31 -100 51 3 DORNIER 328JET ENVOY53 23 HAWKER 125-3A/RA 7 0 BOEING 727-200 25 2 ECLIPSE EA500 256 22 HAWKER 125-3A/RAS30 10EMBRAER LEGACY 600 164 61 HAWKER 125-3AS20 BOEING 737-100 10EMBRAER LEGACY SHUTTLE11 0 HAWKER 125-3B 91 BOEING 737-200 36 1 EMBRAER LINEAGE 1000 20HAWKER 125-3B/RAS 10 BOEING 737-300 91EMBRAER PHENOM 100 68 6 HAWKER 125-3BS10 BOEING 737-400 30FALCON 10 152 14 HAWKER 125-400A 16 0 BOEING 737-500 41FALCON 100 33 11 HAWKER 125-400AS52 3 BOEING 737-700 70FALCON 200 33 4 HAWKER 125-400B 14 1 -300 10FALCON 2000 231 49 HAWKER 125-400BS30 BOEING 747-400 10 0 FALCON 2000DX 41HAWKER 125-600A 20 1 BOEING 747SP 12 1 FALCON 2000EX 26 8 HAWKER 125-600AS12 1 40FALCON 2000EX EASy 143 55 HAWKER 125-600B 20 BOEING 757-200 15 2 FALCON 2000LX 43HAWKER 125-600BS10 -200 70FALCON 20C 93 25 HAWKER 125-700A 173 9 BOEING 767-300 42FALCON 20C-521 5 HAWKER 125-700B 32 21 -200 10FALCON 20D 29 7 HAWKER 4000 25 0 BOEING BBJ 99 14 FALCON 20D-540 HAWKER 400XP 234 43 BOEING BBJ2 14 4 FALCON 20E 37 14 HAWKER 750 35 14 RJ 24 2 FALCON 20E-515 9 HAWKER 800A 226 5 CHALLENGER 30026048 FALCON 20F 87 10 HAWKER 800B 61 14 CHALLENGER 60078 5 FALCON 20F-579 6 HAWKER 800XP 423 52 CHALLENGER 601-1A 63 9 FALCON 20G 5 5 HAWKER 800XPI 51 25 CHALLENGER 601-3A 132 14 FALCON 50 241 40 HAWKER 850XP 100 19 CHALLENGER 601-3R 59 4 FALCON 50-40 60HAWKER 900XP 111 19 CHALLENGER 60436380 FALCON 50EX 101 15 JET COMMANDER 1121110 CHALLENGER 60582 33 FALCON 7X 49 25 JET COMMANDER 1121B 8 1 CHALLENGER 80031 FALCON 900 39 12 JETSTAR 6 20 CHALLENGER 85043 26 FALCON 900B 138 35 JETSTAR 731 163 CHALLENGER 87021 FALCON 900C 25 8 JETSTAR 8 70 CHALLENGER 89020 FALCON 900DX 21 9 JETSTAR II24 1 CITATION 500 271 37 FALCON 900EX 118 35 2315 1 CITATION 525 352 86 FALCON 900EX EASy 100 39 LEARJET 2437 1 CITATION BRAVO 335 81 FOKKER F10043 LEARJET 24A 4 0 CITATION CJ1 195 53 FOKKER F28 31LEARJET 24B 250 CITATION CJ1+97 33 GLOBAL 5000 77 18 LEARJET 24D 66 1 CITATION CJ2 239 73 GLOBAL EXPRESS 149 36 LEARJET 24E 15 0 CITATION CJ2+15358 GLOBAL EXPRESS XRS 8430 LEARJET 24F 9 0

30 - BART: FEBRUARY - APRIL - 2010 TURBOPROPS JET FLEET

2.697 MFG/MODEL TOTAL EUR MFG/MODEL TOTAL EUR 17.118 LEARJET 2530 0 AVANTI II 87 33 LEARJET 25B 68 1 AVANTI P18098 42 LEARJET 25C 14 1 CARAVAN 20839029 World Europe LEARJET 25D 138 2 CARAVAN 208B 1.311 81 LEARJET 25G 4 0 CHEYENNE 400 40 7 TURBOPROPS FLEET LEARJET 2850 CHEYENNE I17115 LEARJET 2940 CHEYENNE IA 174 1.215 LEARJET 3135 4 CHEYENNE II 372 48 12.499 LEARJET 31A 207 13 CHEYENNE III 80 9 LEARJET 35500CHEYENNE IIIA 5416 LEARJET 35A 479 40 CHEYENNE IIXL 75 6 World Europe LEARJET 3615 0 CONQUEST I20916 LEARJET 36A 38 4 CONQUEST II 318 9 WORLD TURBINE FLEET LEARJET 4045 16 GULFSTREAM G-I 703 LEARJET 40XR 74 13 JETSTREAM 31 45 9 3.912 LEARJET 4523942 JETSTREAM 32 31 5 29.617 LEARJET 45XR 155 15 JETSTREAM 41 92 LEARJET 55116 14 KING AIR 100 64 1 LEARJET 55B 8 1 KING AIR 200 713 65 World Europe LEARJET 55C 14 2 KING AIR 200C 32 3 LEARJET 6031254 KINGAIR 200T 20 2 LEARJET 60XR 54 19 KING AIR 300 212 2 LOCKHEED L1011 30KING AIR 300LW 21 10 MFG/MODEL TOTAL EUR MDD DC8 20KING AIR 350 623 48 MERLIN IV-C 214 MDD DC9 12 0 KING AIR 350C 27 4 MITSUBISHI MARQUISE 983 MDD MD8014 2 KING AIR 90 30 1 MITSUBISHI MU-2B 3 0 PREMIER I 126 23 KING AIR A/B90 13 0 MITSUBISHI MU-2C 16 0 PREMIER IA 136 36 KING AIR A100112 4 MITSUBISHI MU-2D 1 0 SABRELINER 40 24 2 KING AIR A2002361MITSUBISHI MU-2F 39 0 SABRELINER 40A 28 1 KING AIR A90 77 5 MITSUBISHI MU-2G 6 0 SABRELINER 40EL 7 0 KING AIR A90-1 121 2 MITSUBISHI MU-2J 47 1 SABRELINER 40EX 2 0 KING AIR B100 122 1 MITSUBISHI MU-2K 43 7 SABRELINER 40R40 KING AIR B200 1.091 134 MITSUBISHI MU-2L 22 0 SABRELINER 40SE 10KING AIR B200C 100 6 MITSUBISHI MU-2M 19 3 SABRELINER 50 10KING AIR B200CT 90MITSUBISHI MU-2N 26 0 SABRELINER 60 43 0 KING AIR B200GT 86 16 MITSUBISHI MU-2P 32 2 SABRELINER 60A30 KING AIR B200SE 51MITSUBISHI MU-2S 17 0 SABRELINER 60AELXM 1 0 KING AIR B200T 23 1 MITSUBISHI SOLITAIRE42 1 SABRELINER 60EL 3 1 KING AIR B90 113 6 PILATUS PC-12 776 92 SABRELINER 60ELXM 330KING AIR C90 445 43 PILATUS PC-12 NG 151 24 SABRELINER 60EX 4 0 KINGAIR C90-1 42 0 PIPER MERIDIAN 382 61 SABRELINER 60SC 2 0 KING AIR C90A226 20 SOCATA TBM-700A 105 30 SABRELINER 60SCELXM 2 0 KING AIR C90B42634 SOCATA TBM-700B 96 30 SABRELINER 60SCEX 10KING AIR C90GT 978SOCATA TBM-700C1 85 SABRELINER 65 75 1 KING AIR C90GTi 98 16 SOCATA TBM-700C2 95 11 SABRELINER 80 27 0 KING AIR C90SE 160SOCATA TBM-85017433 SABRELINER 80A30 KING AIR E90 295 18 STARSHIP 2000A 5 0 SABRELINER 80SC 7 0 KING AIR F90 188 11 TURBO COMMANDER 1000 100 3 SINO SWEARINGEN SJ30-2 41KING AIR F90-1 303TURBO COMMANDER 69048 1 WESTWIND 1 105 0 MALIBU JETPROP 218 56 TURBO COMMANDER 690A 186 9 WESTWIND 1123 7 0 MERLIN 30092 TURBO COMMANDER 690B 193 4 WESTWIND 1124 54 0 MERLIN IIA 2 0 TURBO COMMANDER 8401056 WESTWIND 2 80 0 MERLIN IIB 37 4 TURBO COMMANDER 90034 1 Total Jets 17.382 2.744 MERLIN III 28 1 TURBO COMMANDER 98074 3 MERLIN IIIA 35 5 Total TurboProp 12.499 1.215 MERLIN IIIB 59 5 Grand Total 29.881 3.959 MERLIN IIIC 24 2 MERLIN IV 91 © avdata/JETNET MERLIN IV-A 245© avdata/JETNET

BART: FEBRUARY - APRIL - 2010 - 31 REPORT 2009 BUSINESS AIRCRAFT FLEET

Likewise, a recently released study shows the powerful SOUTH AMERICA connection between well-run companies and those that use Country Total Executive Jet Turb. Business Aviation. For example, Business Week maga- 233 1105 127 zine’s 2009 “25 Best Customer Service Companies” and the 15 0 312 Corporate Responsibility Officer’s list of 2009 “100 Best Brazil 1010 3463544 Corporate Citizens” both show that 90 percent of the identi- Chile 782 2848 fied S&P 500 companies are business aircraft users – Colombia 228 0 21 207 which hints that as the economy recovers so too will Ecuador 230 9 14 Business Aviation. Guyana 80 0 8 “When America’s most responsible and best-run compa- Paraguay 23 1 517 nies use Business Aviation to create jobs and share holder Peru37 1531 value, attacks on this segment of general aviation are Suriname 3 003 Uruguay 80 2 6 EUROPE Venezuela 560 1 200 359 Country Total Executive Jet Turb. Total 2226 9 841 1376 267 2 236 29 Belarus10 10 Belgium85 249 34 Bosnia and Herzegovina 30 2 1 Bulgaria28 121 6 NORTH AMERICA Croatia11 065 Country Total Executive Jet Turb. Cyprus 11 010 1 Antigua and Barbuda 1 001 Czech Republic 460 2818 Aruba 150 132 Denmark1020 7131 Bahamas 23 1 715 Estonia90 81Barbados 4 031 Finland41 027 14 Belize 14 0 113 398 4 195 199 Bermuda40 135 4 Germany6447420 217 Canada 1068 8 400 660 Gibraltar 20 2 0 Cayman Islands 282 233 56 3 35 18 Costa Rica30 010 20 Hungary 70 5 2 Dominica11 00 Iceland80 44Dominican Republic 370 1720 Ireland45 134 10 El Salvador 7 124 Isle of Man42 037 5 Greenland 10 0 1 Italy 230 0 151 79 Guadeloupe 3 003 Latvia 80 6 2 Guatemala 68 0 22 46 Liechtenstein 30 2 1 Haiti 3 201 Lithuania 5 032 Honduras 140 4 10 Luxembourg72 134 37 Jamaica 50 3 2 Macedonia 2 020 Malta 6 150 Martinique 1 001 Moldova 10 1 0 Mexico 960 11 635 314 Monaco 5 041 Netherlands Antilles 50 2 3 Montenegro50 50Nicaragua70 07 Netherlands 891 5137 Panama86 025 61 Northern Ireland40 40Puerto Rico 590 2831 Norway 59 0 15 44 St Vincent-Grenadines 3 021 Poland 32 0 18 14 Trinidad and Tobago 1 010 Portugal 194 0 187 7 Turks and Caicos Isl.2 0 11 Romania16 1123United States 17905 122 10787 6996 Russian Federation 128 1 106 21 Virgin Islands (British) 161 114 San Marino 6 051 Virgin Islands (U.S.) 11 074 Scotland20 11West Indies 7 070 EXECUTIVE Serbia 19 0 15 4 Total 20425 150 12046 8229 Executive Slovak Republic 140 9 5 aircraft are Slovenia15 012 3 airliner aircraft Spain 193 4 141 48 converted to Sweden 850 5035 UNKNOWN private business Switzerland 313 4227 82 Country Total Executive Jet Turb. use, excluding Ukraine36 2295 United Kingdom 611 12 411 188 Unknown93 249 42 models originally Total 3959 47 2697 1215 Total 93 2 49 42 meant for business use.

32 - BART: FEBRUARY - APRIL - 2010 AFRICA TOP TEN BUSINESS FLEETS BY COUNTRY Country Total Executive Jet Turb. United States ...... 17,905 Algeria27 1818 Angola 53 4 21 28 Canada ...... 1,068 Benin41 30Brazil ...... 1,010 Botswana 30 0327 Mexico ...... 960 Burkina Faso 41 0 3 61 2 3 ...... 644 Canary Islands 20 2 0 United Kingdom ...... 611 Central African Republic 2 002 Chad61 14Venezuela ...... 560 Congo 7 034 ...... 444 Cote d''Ivoire61 23Australia ...... 418 Dem. Republic of Congo17 6 56 Djibouti11 00France ...... 398 Egypt42 3345 Equatorial Guinea 40 3 1 Eritrea10 01 Ethiopia 5 104 ASIA Gabon 120 9 3 Country Total Executive Jet Turb. Gambia 21 1 0 Afghanistan 1 001 Ghana 2 011 Armenia10 10 Guinea 10 0 1 Azerbaijan40 40 Guinea-Bissau 10 0 1 Bahrain20 512 3 Kenya 87 0483 Bangladesh 40 0 4 Lesotho11 00Brunei 33 00 Liberia20 02Burma 1 010 Libya 20 311 6 Cambodia 10 1 0 Madagascar 11 038 85 761 17 20 0 2 Georgia10 10 Mali Republic86 02 Hong Kong 37 0 37 0 Mauritania31 02 40 4 0 India 201 3 119 79 34 2 15 17 Indonesia 724 1949 41 1 2 Iran39 319 17 26 0 521 Iraq50 14 Niger 1 100 Israel 8216 31 35 Nigeria47 140 6 Japan 223 3 73 147 Reunion Island 00 00Jordan 175 111 Sao Tome and Principe 2 110 Kazakhstan17 014 3 Senegal61 05Kuwait 153 102 Seychelles Islands 00 00Kyrgyzstan10 01 South Africa 444 7159278 Laos20 02 Sudan 8 044 17 1 15 1 Swaziland 33 00Macau 121 110 Tanzania 470 1 46 Malaysia 550 3124 Togo72 14Mongolia30 03 Tunisia 51 4 0 North Korea 1 010 15 0 213 Oman53 20 Zambia 15 0 114 Pakistan 342 2111 Zimbabwe 91 2 6 Philippines 421 1724 Total 1046 54 356 636 152 121 147 26 108 13 Singapore 26 1 22 3 331 2210 & OCEANIA Sri Lanka 20 0 2 Country Total Executive Jet Turb. Syria20 20 Australia 418 1 133 284 13 2 83 Fiji30 03Thailand48 412 32 French Polynesia20 02Turkey 97 0 75 22 Guam30 30Turkmenistan 52 3 0 Marshall Islands 10 1 0 115 9 91 15 New Caledonia20 02Vietnam20 02 New Zealand41 11327 2 110 Papua New Guinea 15 0 114 Total 1508 108 869 531 Samoa 1 010 Tahiti 00 00 Vanuatu10 01 Total 487 2 152 333 © AVDATA/JETNET

BART: FEBRUARY - APRIL - 2010 - 33 REPORT 2009 BUSINESS AIRCRAFT FLEET

unwarranted,” says Bunce. “We are now seeing some encouraging signs 12 - MONTH FLEET GROWTH that policymakers all around the US (December 2008 - December 2009) are recognizing the vital contribution our industry makes to the economy.” 2008 2009 Unit Change Growth Piston-powered airplane shipments World Fleet 28,612 29,992 +1380 +4.8 totaled 679 units compared to 1,646 European Fleet 3,609 3,959 +350 +9.7 FLEET units delivered in the first three quar- USA 18,090 17,905 -185 -1.0 The figures are ters of 2008, a 58.7 percent decrease. Africa 907 1,046 +139 +15.3 positive, Turboprop shipments decreased 15.8 Asia/Mid East 1,186 1,508 +322 +27.1 with Europe percent from 348 units in the first Oceania 469 487 +18 +3.8 experiencing nine months last year to 293 units S. America 1,965 2,226 +261 +13.3 almost 10 during this same period in 2009. N. America 20,356 20,425 +69 +0.34 percent growth. shipments totaled 615

units, a 37.8 percent decline over the 988 units delivered through the third quarter in 2008. And how are all these depressing numbers translated into words? It’s not that bad! “Really?”, you ask. Let us explain.

Yes, the world fleet grew by a lower rate than it did in 2008. But it still grew, by nearly five percent. Five per- cent, that’s not bad when we are talk- ing about an economy that – at some points – failed to grow at all. And yes, the United States market actually shrunk, but 17,905 jets is still an impressive number. And when read- ing this number one must keep in mind that every year aircraft are retired or sold to other markets and, although they are usually replaced by new jets, this year was an exception.

34 - BART: FEBRUARY - APRIL - 2010 REPORT 2009 BUSINESS AIRCRAFT FLEET

That’s right – an exception. The num- bers, when held up against the eco- nomic and political facts, make 2009 an exception, not a rule. The US econ- omy was hit hard and, as Bunce states, Business Aviation was unfairly held out as the scapegoat. But, thanks to the concerted efforts by GAMA and NBAA, this perception is changing and with it, business aircraft are once again being bought. So expect to see the US back in the black next year at this time. What about Europe? It’s the opposite situation here as 2008 was an excep- tion – with an 18 percent growth rate. Perhaps because of the economy or maybe simply a result of a leveling off of the business scene, Europe is back to a more reasonable 9.7 percent rate of growth. But let’s go out on a limb here and say “who cares about the US and European markets”? Yes, they’ve slowed but they are still strong. What we should care about is where the growth is because – going back to the concept of using the past to predict the future – this year’s statistics are screaming that the future of Business Aviation is in the emerging markets. Africa is up by 15.3 percent, with South Africa leading the way. Asia and the Middle East enjoyed a 27.1 percent increase in fleet size. Think about that. 27.1 percent – in an economic crisis nonetheless. And South America, home of Top Ten players Brazil and Venezuela, enjoyed a 13.3 percent rate of growth. Although the Top Ten list saw no changes in position since 2008, we may predict a new number two in 2011. Last year, Brazil trailed Canada by almost exactly 100 aircraft. Over the course of the past year, Brazil has closed this gap to 58 aircraft – so maybe a BRIC country will move to number two in next year’s list? Let’s not forget there are plenty of countries looming in the shadows of this prestigious list: Argentina (233), Columbia (228), Japan (223), India (201), Saudi Arabia (147), Russia (128), China (122) and the UAE (115) are all creeping their way up. And guess where these countries are all located? That’s right, the emerging regions of Asia, the Middle East and South America.

36 - BART: FEBRUARY - APRIL - 2010 Where the Growth Is Turboprops vs. Jets Bolstered by the surge in emerg- ing markets and steady sales in bush countries like Australia and the safari region of Africa, Turboprops continue to grow. This year the turboprop fleet increased from 12,127 to 12,499, for an increase of 372 – slightly down from last year’s increase of 457 aircraft. But this is still up from several years ago when turboprops were viewed as a thing of the past. If you recall, in 2007 the number of new turboprops entering the market plummeted from 794 in 2006 to just 325. Likewise, all things considered, jets too enjoyed another strong year. This sector closed out the year with a fleet total of 17,118 aircraft worldwide. In 2008, the worldwide jet fleet was at 16,240, which repre- sents an 878 aircraft increase (com- pared to a 970 increase in jet fleet last year). Of the total jet fleet, 2,697 year. Other leaders include the 74, Embraer at 56 and Dassault at are based in Europe, meaning that Challenger 604 (363 jets), Beechjet 51. In terms of total billings year-to- the continent’s love affair with the 400A (346 jets) and the date 2009 the list turns a bit: business jet continues. (312 jets). Bombardier ($3,948,000,000), Once again turning to numbers to Gulfstream ($3,054,000,000), Models and Makes predict the future, according to Dassault ($2,000,665,000), On the jet side, as to the overall GAMA’s reports the above listed Cessna ($1,828,523,634), contribution to the worldwide jet trends look to stay on track. As of Hawker Beechcraft ($1,221,618,700), fleet, there is no change in the lead- the close of the Third Quarter 2009, and Embraer ($523,975,000). GROWTH ing OEMs with Cessna staying at Cessna has shipped 512 units, with On the turboprop side, things Both turboprops the top spot with 5,769 jets flying, Hawker Beechcraft at 173, remained pretty much the same. The and jets showed followed by Bombardier (3,672) and Bombardier at 140, Gulfstream at leading aircraft continues to be the a strong year. Hawker Beechcraft (2,113). This year Gulfstream bumped Dassault out of the number four spot with its 1,852 jets (compared to Dassault’s 1,834). And Embraer – a company who continues to surge with new aircraft – comes in with 245 jets. In terms of specifics, like last year, the Citation reigns supreme, claim- ing six of the top ten spots. At the top remains the Citation II, which actually dropped two aircraft from its fleet to end the year with 586. Other leading Citations include the Excel (369), 525 (352), Bravo (335) and CJ3 (329). Dropped from the list are the XLS and I/SP, which had 328 and 296 respectively. At the number two spot was once again the Learjet 35A, which, like the Citation II, dropped in numbers from 485 aircraft to 479 in 2009. The number three spot went to the Hawker 800XP, which accounts for 423 aircraft, up one jet from last

BART: FEBRUARY - APRIL - 2010 - 37 REPORT 2009 BUSINESS AIRCRAFT FLEET

Caravan 208B at 1,311 aircraft. The Europe falling and Asia/Middle East it grew by 7.2 percent to 3,054. And other leaders include the King Air surging). in 2008 it boomed to 3,609 – an B200 (1,091), Pilatus PC-12 (776), At the same time, 2009 can be com- increase of 552 aircraft, or an 18.0 King Air 200 (713), King Air 350 (623) pared to 2007, where regions saw a percent rate of growth in overall fleet and Cheyenne II (372). In Europe, limited level of growth. At the time, size. So things cooled off a bit, but which favors the jet, the King Air B200 the lower levels were explained by this year’s 9.7 percent increase in is the most popular turboprop, at 134. such international issues as fleet size (350 aircraft) is still higher The Pilatus PC-12 and PC-12 NG increased oil prices and greater reg- than the impressive 2006 – 2007 7.2 remain popular in North America, with ulations making it more difficult for percent increase. 583 and 98 respectively. Business Aviation to sustain its Top individual countries remain the upward growth. In 2009, the lower usual suspects, with Germany, the Regional Performance levels of growth can simply be United Kingdom and France all rep- As previously mentioned, unlike last explained by the often quoted Bill resenting the continent on the Top year, in 2009 not all regions experi- Clinton quote: “It’s the economy, stu- Ten Business Fleets by Country list. enced an increase in total fleet size, pid”. Where the economy is strug- All three countries saw their fleets with the United States seeing a gling (US, Europe), the numbers grow, with Germany going from 570 decrease of 185 aircraft, or a one per- stagnated. Where the economy did to 644, the United Kingdom from 536 cent decrease in rate of growth. But better (Asia, Middle East, South to 611 and France from 330 to 398. overall, the net growth of all other America), the numbers surged. Other European countries that saw regions remains positive. In 2006 all considerable growth over the past AREA regions were reported as showing a Europe year include: Europe decrease in level of annual growth. Europe continues to be one of the Austria (+26), continues to be More in line with last year’s trend, world’s most successful markets, Bulgaria (+9), one of the most most regions saw an increase, with growth continuing over the last Czech Republic (+10), promising although which regions experience several years. In 2006, the total Denmark (+7), regions. how much growth varied (with European fleet was at 2,851. By 2007 Finland (+8),

38 - BART: FEBRUARY - APRIL - 2010 This isn’t anything new. Even last year in our Fleet Report we discussed not only how the slowing of the American economy and the weaken- ing of the US dollar both contribute to this trend, but that it is also the result of a larger trend – namely the growing importance of the global economy. And that trend continues to strength- en. In North America, the three main players – US, Canada and Mexico – are all Top 10 Players, with both Canada and Mexico seeing their fleets grow. Other North American coun- tries enjoying a net growth include: Bahamas, Cayman Islands, Domincan

Greece (+15), Italy (+17), (+9), Netherlands (+21), Norway (+16), Poland (+9), Russia (+55), Spain (+31) and Switzerland (+23). Interestingly, the Isle of Man saw 29 new aircraft on its registry, whereas Cyprus lost four, Ireland went down eight, Lichtenstein by 11 and Monaco by 35 aircraft. 2009 also welcomed Moldova to the Business Aviation club.

The Americas Usually this space is dedicated to the United States and Canada, with the rest of the America filling in white LEADERS space. But this year let’s change the Russia +55, focus. Yes, the US and Canadian fleets Austria +26 and still dominate – and will probably do Switzerland +23 so for some years to come. However, were the the focus has shifted to South leading countries America. last year.

BART: FEBRUARY - APRIL - 2010 - 39 REPORT 2009 BUSINESS AIRCRAFT FLEET

Breaking down this diverse region into countries, it again becomes clear that the vast majority of this business is within the Middle East. It should be noted that this could be severly effect- ed by the late 2009 debt crisis in Dubai – but we’ll have to wait and see. In the Middle East, the big players are Israel (82), (20), (39), Qatar (15), Saudi Arabia (147), Turkey (97), and the UAE (115). On the Asian side, the leaders include China/Hong Kong (122), Indonesia (72), Japan (223), Malaysia (55), Pakistan (34), Philippines (42), Singapore (26), Republic (with an impressive 10 air- South Korea (33), and Thailand (48). craft added to the fleet), Guatamala India also continues to grow as a and Puerto Rico. Other tropical Business Aviation center. With a total nations did not fare as well, with fleet of 201, this is a 33 aircraft Belize, El Salvador, Turks and Caicos increase from 2008. and both the US and British Virgin Islands losing aircraft. Although Australia, Oceania and Africa Anguilla fell of this year’s list, its spot Australia and Oceania continued its was taken by Martinique. trend of posting a slow but steady In South America, Business increase, with a total increase of 18 air- Aviation continues to boom. In 2008 craft, which is down from the 38 air- its total fleet came in at 1,965. At the craft added last year. Countries that end of 2009 the number was 2,226, enjoyed an increase include Australia for an addition of 261 aircraft. In (+8), Fiji (+2), New Zealand (+9), and Papua New Guinea (+4). Those with decreases include French Polynesia, New Caledonia and Tahiti. Africa, on the other hand, continues to enjoy significant growth. Coming off an 8.9 percent increase in growth over 2008, in 2009 Africa topped itself by adding 139 aircraft for a 15.3 percent increase in rate of growth. The leader continues to be South Africa, who is a Top Ten member, but such countries as Angola, Botswana, Egypt, Kenya, Morocco, Nigeria and Tanzania contin- ue to add to their fleets.

Looking Ahead 2009 was a rough year – and chances are 2010 will be slow going too as the economy struggles to pull itself terms of growth rates, this converts Asia and the Middle East together. Yet the future of Business to an impressive 13.2 percent. If you were to hedge your bets on Aviation continues to look promising. Individual country leaders continue where the future of Business Aviation New markets are opening and others to be Brazil, Venezuela, Argentina is, put your money on Asia and the are seeing new benefits for Business and Columbia, but one should keep Middle East. With an increase in fleet Aviation. How will our 2010 Fleet REGIONS an eye on such countries as Chile size of 322 aircraft and a whopping Report read? It’s hard to say, but we’re Business and Paraguay, both of whom contin- 27.1 percent increase in rate of growth guessing the world fleet will continue Aviation is ue to steadily increase their fleet – this region is booming. This may to climb. booming in India, sizes. Interestingly, Ecuador saw its explain why in 2011 NBAA will return the Middle East fleet decrease and saw no to its relationship with ABACE after and Africa. change at all. canceling the show last year.

40 - BART: FEBRUARY - APRIL - 2010 REPORT CHARTERINDEX PULLING THROUGH

NUMBER OF CHARTER REQUESTS SENT PER MONTH For the sixth year in a row, 60,000 BART International has teamed up with the experts at Avinode, an independent 50,000 European online charter network, to provide an in- depth statistical overview of 40,000 the European Business Aviation Industry. 30,000

009 can best be summarized as a 2 year of slow recovery for the 20,000 charter industry. In 2008, 585,000 searches and 500,000 requests were 10,000 sent. In comparison, 2009 saw these numbers drop to 473,572 request, with demand hovering slightly below 2008 0 levels (see charts). But this is not nec- 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 essarily bad news as, if one looks at Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec the numbers, it becomes clear that things are getting better – as both demand and requests saw a steady Needless to say, the reason for this Year Month Total Sent Requests increase as the year progressed. overall drop is the global financial cri- 2009 Jan 26,734 In fact, at the close of 2009 demand sis and its significant affect on the 2009 Feb 26,550 actually exceeded 2008 levels with charter industry. Out of the Business 2009 Mar 31,372 searches peaking over 180,000 in Aviation sector, perhaps the charter 2009 Apr 34,460 December. This is slightly up from the industry took the quickest hit, with a 2009 May 39,315 roughly 170,000 made during the number of charter companies going 2009 Jun 45,807 same month in 2008. Also, the pattern out of business, particularly in Europe 2009 Jul 51,420 of searches and requests remained the and the US. However, the late increase 2009 Aug 47,608 RECOVERY same, with both years showing a sharp in numbers is also proof that the 2009 Sep 41,827 Charter demand increase during the summer months recovery has begun and – although it 2009 Oct 42,561 exceeded 2008 (mainly July) and a gradual increase to may be slow – the worse is likely 2009 Nov 41,691 levels at the end close the year. behind us. 2009 Dec 44,227 of the year.

BART: FEBRUARY - APRIL - 2010 - 41 REPORT CHARTERINDEX

Distribution of Requests Below is a graph showing the distribu- tion of requests between the different aircraft categories. Light Jets and Midsize Jets also contain Super Light Jets and Super Midsize Jets respective- ly. As in past years, Heavy Jets enjoyed its strongest period in the least overall busiest period – the winter season. At the same time, Light Jets had its busiest period during summer season. Midsize jets remained fairly constant throughout the course of the year, as did turboprop requests.

Most Popular Departure Airports 50% In terms of the most requested 45% departure airports, a few trends can be identified. First, Moscow and 40% London remain, by far, the strongest regions – representing 17.8 and 8.9 35% percent respectively of all departure 30% requests. These numbers are up from 2008, when the London area 25% represented 11.7 percent and the Moscow area 12.8 percent of all 20% departure requests. 15% Departure Requests (All Categories) 10% UUWW 17.5% LFPB 4.3% 5% EGGW 3.7% LFMN 2.9% 0% 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 EGLF2.3% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ULLI 2.1% LSZH1.6% Turbo Prop Light Jet Midsize Jet Heavy Jet LIML1.4% UKBB 1.3%

DEPARTURE Moscow, London and Nice have enjoyed increased requests in 2009.

42 - BART: FEBRUARY - APRIL - 2010 Trends Turbo Props Mid-Size In the turboprop sector, the top ten list LFPB 5.8% UUWW 29.0% is dominated by western and northern EHRD2.1% ULLI 3.5% European cities. However, for light jets, EGGW 2.1% EGGW 2.8% the list for departures is mixed – cover- LSGG2.1% LFPB 2.6% ing both European staples as EBAW 1.9% LFMN 2.4% Bordeaux, Nice and Geneva, along with LOWW1.8% OMDB2.0% Moscow’s Vnukovo and Kula Lumpur. EHAM1.8% LSGG2.0% Eastern Europe continues to develop as LSZH1.8% KTEB1.9% a prominent location for midsize jets, LFMN 1.8% UKBB 1.5% where the numbers far outpace those EBBR 1.8% EGLF1.4% of smaller aircraft categories. Moscow, St. Petersberg and Kiev are all repre- Light Jets Heavy sented on this years top ten list – along LFPB 5.8% UUWW 27.6% with Dubai at the number six position. LFMN 4.2% EGGW 4.5% Heavy jets remain international in LSGG4.0% LFPB 3.9% scope, with Teterboro, St. Martin, UUWW 3.7% LFMN 2.8% London, Moscow and Dubai represent- EGGW 3.4% ULLI 2.8% ed in the top ten. In terms of overall EGLF2.8% LSGG2.7% percentage, the Moscow region domi- LIML2.5% KTEB2.1% nates in both the mid and heavy cate- LSZH2.1% EGLF1.8% gories, checking in at 29.4 and 28 per- EGKB1.8% OMDB1.8% cent respectively. LFMD 1.7% LSZH1.5%

Most Popular Arrival Airports As an overall trend, people typical- ly fly from North to South, with such cities as Costa Smeralda, Malaga and Rome showing up in the arrival top ten. Turbos signifi- cantly follow this North to South flying pattern, whereas in the heavy jets sector one sees more major city destinations as Dubai and New York. When compared to departure air- ports, Moscow’s overall 4.9 percent of all arrivals shows that once again ARRIVAL Moscow remains a popular region Costa Smeralda, for departing. A similar pattern can Malaga (left) and be seen in London, although not as Rome show up in significant. the arrival top ten.

BART: FEBRUARY - APRIL - 2010 - 43 REPORT CHARTERINDEX

All Categories 105.00 UUWW 4.8% LFMN 3.8% LFPB 2.9% 100.00 LSGG2.6% EGGW 1.9% LIEO1.6% 95.00 x OMDB1.4% de LSZH1.3% In ce LEMG1.2% 90.00 Pri LIRA1.2%

Turboprops 85.00 LFPB 2.5% LFMN 2.2% LSGG1.7% 80.00 EDDV 1.4% 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 10/09 1/09 12/09 LFTZ 1.2% LIRA0.9% EDDM 0.9% EBBR 0.8% EIDW0.8% LIEO0.8%

Light Jets LFMN 4.1% LFPB 3.6% LSGG2.9% LIEO2.3% UUW W 2.1% LEIB1.5% LIRA1.5% EGGW1.4% LFMD 1.4% LSZH1.3%

Mid Size UUWW 6.6% LFMN 3.9% LFPB 2.3% OMDB2.2% LSGG2.2% EGGW 1.8% ULLI 1.6% LEMG1.5% LTAI1.4% UKBB 1.2% Chartering into 2009 Perhaps “Decline” is the best word to The data presented in this article is Heavy Jets summarize the Charter Industry in extracted from The Avinode UUWW 5.2% 2009. Although the trend for depar- Marketplace, the leading online market- LFMN 3.5% tures and requests have all increased place for private jet charter flights. For OMDB2.8% towards the latter half of the year, more information please contact: VRMM 2.7% when it comes to price the graph con- Nina Bertilsdotter, EGGW 2.7% tinues to show a steady decrease. Director of Marketing Avinode PICK UP LFPB 2.6% However, as the economy slowly Phone: +46-31-751 00 00 Expect to see the LSGG2.5% climbs out of the crisis, expect to see Email: charter industry KTEB1.8% this industry begin to rebound – espe- [email protected] rebound with LSZH1.3% cially as companies return to Business Internet: www.avinode.com the economy’s KMIA1.2% Aviation as a tool for economic suc- recovery. cess.

44 - BART: FEBRUARY - APRIL - 2010