Euro bizav reports intra-EU dip

European business aviation saw a dramatic close to 2012, with December figures indicating the worst monthly performance of the year, at -7.9%.
With a deficit of close to 30,000 movements (-4.3% on an annual basis, which roughly corresponds to the size of the Ukrainian market), it is second only to the near-apocalyptic 2009, according to the European Business Aviation Association (EBAA).
It said the primary cause of the decrease is related to intra-EU movements (-10.5% in December), whilst movements to/from EU have stood up fairly well, with respectively ‘only’ -1.9% and -2.0% throughout the year.
“The final number is slightly misleading though. With -9.1% yearly, Italy is in an unprecedented predicament, and the end of the tunnel there doesn’t yet seem to be in sight,” it warned. “If the total EU results had been calculated without the transalpine peninsula, things would have been different, and the downturn less steep at “just” -2.7%.”
Italy’s fate accounts for 1.6 percentage points in the overall result. “And since we know part of the Italian quandary is due to Rome’s insistence on a BusAv tax, it illustrates well the interest the entire sector has in finding ways to curb inappropriate and unfair taxation,” the EBAA pointed out.
“But as a general consequence, it also shows that these numbers should always be used with caution because movements only tell a partial story. The numbers alone should not be taken as the sole indicator of our market’s health. For instance, it is noteworthy that the number of BusAv passengers increased in 2012 (2,576,000 pax) compared with 2011, at +2.3. This indicates that the average number of passengers per movement is increasing, not decreasing, against all odds.”
“Similarly, it seems that Europe has finally reached the bottom in aircraft deliveries, after an uninterrupted tumble starting in 2009, when just 458 business aircraft had found buyers. According to initial estimates, jet and turbo-prop deliveries were on a par with last year’s numbers, at 135 units (vs. 136). The other good piece of news is that, in the U.S., deliveries have picked up again, to reach 746 aircraft delivered, an enviable surge of 40%.”