Page 20 - AAA JUNE - JULY 2017 Online Magazine

SHOW REPORT EBACE

Business as Usual

The 2017 edition of EBACE was a successful one as the business aviation market shows
signs of recovery
By Atul Chandra

it HAs been A deCAde sinCe tHe health of the European business aviation the business aviation sector as the date
incredibly highs witnessed in the business market, which as seen steady growth into for the UK’s exit from the EU is March 30,
aviation market in 2007, however the signs the six months leading to April 2017. “I’m not 2019. “Brexit is the single most important
of a slow but sure build-up in the market for quite ready to declare green shoots are taking political and economic event for the UK in a
business aviation was evident at the recently hold,” said Richard Aboulafia, vice president generation,” said Martin Kennaugh, manager
concluded 2017 European Business Aviation of analysis at Teal Group, who was speaker at of aviation services for ICM Aviation, at
Convention & Exhibition (EBACE2017). The on the panel. “We will return to growth, but we the EBACE2017 International Transactions
show organisers announced that that the might not return to the 2007 market peak until Seminar. “Everything is going to change.”
latest edition of EBACE was one of the most 2021.” There is also the matter of oversupply Following Brexit, the main challenge for
successful in recent memory, “Business of business jets in the used market and the British operators will be their lack of access
aviation in Europe is growing, and this show uncomfortable situation of manufacturers to the EU air operator’s certificate (AOC)
featured several new business models that who are bringing out brand new business jets and as a result, they will have to relocate
offer new opportunities to grow the market having to discount their offerings to keep the their principal place of business to an EU
further,” said EBAA CEO Brandon Mitchener. production lines open. “OEMs are spending member state, if they wish to retain their
EBACE 2017 saw participation from more heavily on new models. That’s a reason to EU AOC. British air carriers will also see
than 400 exhibitors and 56 aircraft were on be concerned,” said Aboulafia. “We’re seeing their traffic rights in Europe affected as
display at Geneva International Airport, and some aircraft platforms end. We better have presently, a British operator can pick up
three more aircraft were displayed inside the the growth we’re forecasting, otherwise we’re passengers in Paris and fly them to Geneva
Palexpo exhibit hall. going to see some pain.” or Lyon; as under EU regulations, European
Community air carriers have free access
Business Aviation Growth in Europe Brexit Impact to all flights throughout the EU. The British
The State of the Industry panel at EBACE2017 There remains a substantial amount of Government will have to renegotiate these
brought out interesting insights into the concern about the impact of Brexit on agreements in the run-up to Brexit and
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