Meeting the needs of executives, entrepreneurs and communities which are significantly underserved by commercial airlines, business aviation fills a void in Central and South America that no other form of transport can.

Infrastructure gaps

Of Brazil’s 5,500 municipalities, only about 130 are covered by commercial aviation routes (ALTA). This snapshot of an acute necessity for connectivity is replicated across the continent.

With commercial flight options limited, and travel times by boat or train often rolling into days, business aviation’s flexibility and efficiency is fueling its demand across the region. Time-pressured executives conducting operations beyond borders also prefer the privacy and convenience offered by a business aviation terminal, where long queues and scheduled flight times don’t exist.

We’re also seeing clients who first experienced flying privately during the pandemic transition from charter into full ownership as they recognize that having their own aircraft is now essential to further their business growth. For them, going back to the airlines is not a viable option.

A vast continent

Due to the size of Latin America and the large distances involved in both regional and international travel, we see high demand particularly for large jets, with aircraft such Gulfstream’s G550 or Embraer’s Legacy 600 offering the range and speed necessary to fly longer distances and navigate the continent efficiently.

Super midsize and midsize jets like the Cessna Citation or Bombardier Learjet series also remain popular, providing the capability to facilitate cross-border travel while still ensuring optimal comfort and performance.

The preference for these aircraft types isn’t a coincidence; it highlights the unique requirements of the Latin American economy where agriculture and mining dominate, driving a pressing need for international connectivity.

Confidence in the future

Despite economic and political fluctuations, Central and South America show promise and potential for sustained growth in business aviation. Recent elections in Brazil and Argentina have supported economic growth and opened new business opportunities.

This is where the right support and local expertise proves invaluable. Jetcraft stands out in the Latin American aviation landscape for its unparalleled global presence and client-centric approach. We provide total market visibility, sourcing opportunities that others can’t reach thanks to our boots on the ground across the Americas, Europe, Asia-Pacific and beyond.

To find out how Jetcraft can support you, connect with our team today.

While debates range on whether so-called ‘revenge travel’ is over, for IATA, North America remains “the standout region in terms of financial performance.” Its latest forecast states demand in Revenue per Passenger Kilometer (RPK) was 16% higher in 2023 compared to 2022, with a 6.3% year-on-year rise in March 2024.

Amid such a thriving environment, the region is poised to not only profit from revived travel demand but to also serve as a source of aircraft for other regional airlines.

Supply and demand

The strong return of the transatlantic market in 2023 was coupled with a surge in regional and interstate travel. With the upcoming US elections, North America’s aviation growth and profitability may slow in 2024, yet we don’t expect the difference to be significant. Despite rising interest rates and cost-of-living pressures, consumer spending on air travel remains robust.

Set this against widely reported issues with certain airframes and engines, and there is considerable pressure on North American airlines to protect their flying schedules and meet demand. With aircraft out of service for inspections and delivery delays occurring for new planes, we’re seeing older models flying for longer than first anticipated.

While some aircraft types are unavailable, there are opportunities as operators look to fill gaps and explore new ways to meet passenger demand. For example, outside of North America we’re seeing rising interest in larger turboprops such as the ATR 72 series and the Dash 8-400, as well as regional jets to provide essential cross-country connections and open up new point-to-point opportunities.

Supporting global markets

North America has always been a market of significant value but it’s also a prime source of inventory for regional and domestic carriers worldwide. In 2023, Jetcraft Commercial took a notable step by acquiring 19 Dash 8-400s from Horizon Air and placing them with strategically selected customers outside of the US and Canada.

The demand for the Dash 8 stems from its economics and performance – the aircraft’s high speed, flexibility and higher density perfectly meet the needs of developing domestic and regional travel markets, particularly for carriers operating in landlocked countries with hot temperatures or high altitudes.

Despite global uncertainties affecting air travel, North America’s aviation market remains resilient, offering unique opportunities to drive air travel across developing regions. With our global perspective and agile response to market dynamics, Jetcraft Commercial is a strategic partner for airlines looking to transition out a fleet type or capitalize on emerging opportunities.

With demand at an all-time high, selling a listing was more straightforward, especially as many sellers delayed large maintenance projects and internal refurbishments to capitalize on a dynamic market.

Now the market is returning to normal, it’s important that sellers understand the benefits of properly readying their aircraft for sale to maximize its value.

Previously, buyers were willing to invest in the business jet they wanted, even if it was due for maintenance or refurbishment. Today’s buyers expect aircraft to be well maintained and in the early part of their maintenance. Sellers should stay ahead of maintenance requirements to ensure their aircraft’s readiness for a buyer or be prepared to lower their price.

Once the aircraft is in a good, saleable condition, sellers should consider potential buyers in all locations, including outside their home country. Business aviation is a global market, and transactions regularly take place across borders. Partnering with a specialist like Jetcraft, who are connected to buyers around the world, and who know exactly where demand lies, will give you an edge when promoting your listing.

With the number of days on the market increasing, positioning your aircraft to the right audience is now even more important. Sellers should work with a trusted advisor with a strong pulse on the current industry landscape. At Jetcraft, our data-science led approach includes a high-level snapshot of the market, relevant data on the aircraft and a detailed value analysis. We also have a network of qualified buyers ready to make offers.

Finally, don’t underestimate the power of a digital listing ecosystem to reach your audience. Our customized 360-degree aircraft promotions produce the strongest, most targeted reach in the industry, using advertising, digital marketing, and emails to make your listing stand out to potential buyers. Bottom line: Jetcraft gets more eyes on your aircraft than anyone else.

With more than 60 years of experience buying and selling aircraft, we know how to build the most successful listings.

In this video, experts from our dedicated sales and transaction management teams share their top tips for navigating an aircraft deal, including how to avoid common pitfalls.

This return to health is underlined by the European Travel Commission (ETC), which has predicted international tourist arrivals to Europe will surpass 2019 levels in 2024, a year earlier than previously forecast.

For major airlines, there’s a challenge in meeting this increased demand at a time when certain narrowbody models are contending with well-publicized Pratt & Whitney GTF engine problems, and globally, narrowbody inventory remains scarce.

The result is a growing trend towards European airlines turning to regional aircraft and seeking longer leases to source the capacity they need.

The regional and turboprop opportunity                                           

At Jetcraft Commercial, travel demand is driving the speed at which we need to procure aircraft for airlines across Europe.

While narrowbodies traditionally dominate in the region, right now we’re also responding to a significant push for regional and turboprop aircraft, including De Havilland Canada Dash 8-400s, which are becoming popular in southern Europe due to their economic benefits.

Alongside the cost savings, the focus on alternative aircraft types is a response to the limited supply of narrowbodies, prompting airlines to consider other options to quickly meet demand from passengers.

The traffic from Europe is not all incoming however, with the region also proving a fertile source of aircraft for startup airlines in Africa, Asia and beyond. In recent years, we’ve supported clients in Europe that are looking to transition their fleets including HOP! Air France, placing the airline’s former CRJ1000s with customers across the globe.

Long-term view

Covid-19 changed much about aviation, and among European airlines we’ve also seen a shift in purchase agreement terms, with carriers increasingly seeking solutions for the long-term.

Prior to the pandemic and the engine challenges affecting parts of the narrowbody fleet, airlines would turn to regional aircraft to supplement their fleet on a seasonal basis.

Now, we’re seeing fleet managers interested in securing regional aircraft on an annual basis, striking deals that offer better financial returns and meet their need for increased capacity year-round.

Procuring global assets

 At Jetcraft Commercial, we’re making use of our unique global vantage point to support airlines responding to these trends.

This includes harnessing our expertise when procuring assets in other parts of the world, before remarketing and redeploying these aircraft throughout Europe.

It’s through our global footprint that we have total visibility of the market and can convert assets sourced elsewhere into European configured aircraft, delivering genuine value to major airlines.

At a time when operators across Europe are contending with the combined pressures of booming travel demand, narrowbody technical challenges and geopolitical disruption, our international insight is proving key to realizing the full potential of commercial aviation’s recovery.

To find out more about how Jetcraft Commercial can support the success of your airline, visit: jetcraftcommercial.com.

In this video, Matt Potts, General Counsel – EMEA, explains the dedicated support Jetcraft can provide, navigating even the most complex of deals.

How is the legal team involved in Jetcraft’s deals?

The legal team are generally only involved if we are purchasing and selling an aircraft. This could be an almost simultaneous purchase and sale, purchase for inventory or sale out of our inventory. We handle all the negotiations for the letters of intent, purchase agreements, drafting, closing preparations, and closing of the aircraft. On the front end of the deals, we will also advise the sales team on how to properly structure a transaction and get the logistics right so that we can get the deal done successfully.

What was a recent deal you have worked on?

We were able to get an aircraft transaction completed that was an immediate buy and sell. It was fairly difficult because of the jurisdictions involved. The aircraft was in Southeast Asia and was going to a country in Europe, which has notoriously difficult structures around the registration process. The APA negotiations were fairly simple but when it came time for us to close, there were a lot of hoops we had to jump through. Luckily, we had done a lot of our homework on the front end of the deal. We worked with the sales team a lot to make sure that everyone knew what the requirements were, we had local council engaged in each jurisdiction and through that, we were able to make the deal happen.

How do you ensure cross-border transactions are efficient and seamless?

I think the key thing really is to know your limitations, I’m not an expert in every jurisdiction and I never will be, but every jurisdiction has an expert in it. Find out who you need to talk to for help and once the transaction is in place and ready to close, that you have become aware of what is needed to be done, that you have the necessary help, and that you have relied on the correct people who can get you there to get the deal done.

Have you encountered any logistical challenges when closing a transaction?

I mean every transaction is different and each pose their own unique challenges. Whether that’s a buyer wanting to close mid-flight, which we’ve been able to do here and there, or parts not being able to reach where the aircraft is and trying to figure out how we can close in a jurisdiction where we’re not used to. The one thing we do better than anybody in the market is solve those issues and figure out ways to make the deal happen.

The nation is currently the busiest Asian market for business jet activity, with WingX data showing movements in 2023 are up 21% compared to 2022. The report also shows 2023 business aviation flying levels are down 4% on 2022 globally, so India’s growth is bucking the trend. At Jetcraft, we’ve seen rising demand from prospective buyers in India, with midsize and large aircraft types the most popular.

There are still challenges to overcome in the country, but with the right investment in infrastructure and a new approach to regulation, India is poised to become a new growth engine for aviation.

Market drivers

Typically, aviation sector development correlates with an increase in GDP, which in India is projected to be 5.5% per year over the next 20 years, according to the Organization for Economic Cooperation and Development.

Additionally, the number of ‘super rich’ households in India is forecast to rise by five times to 9.1 million households by 2030, according to a report from People Research on India’s Consumer Economy (PRICE), which will introduce a new wave of business aviation users over the next several years. There’s also increased optimism about the country’s economic situation. A report from Asian Sky Group (ASG) found that only 6% of Indian respondents believed economic conditions would worsen in the third quarter of 2023.

Companies are already responding to this promising landscape. We’ve seen huge order numbers from airlines, which has driven the economic prosperity of the region. Due to this, start-ups in business aviation are seeking to capitalize on previously untapped demand for exclusive experiences. For example, EaseMyTrip is hoping to increase its air charter business, having acquired an operator and aircraft management company, Nutana Aviation Capital, in late 2022.

Realizing the potential

While these developments demonstrate the significant opportunity within Indian aviation, it should be noted this has remained untapped for some time.

As the country with the world’s largest population, India could become aviation’s new China, with huge ambitions for the sector, but not yet fulfilled. There are also signs that India is the market with the momentum, with ASG data showing the country’s business jet fleet grew 7% in 2022.

However, like China, India faces infrastructure constraints, which the Indian government is already taking steps to address, having pledged to invest $12bn by 2025 on modernizing airports and constructing new ones. This compares favorably with the $6.75bn the EU spent on airport infrastructure from 2000 to 2013.

There are also challenges around a lack of skilled labor, which could be addressed through dedicated skills programs. An easing of regulations and reduction in fuel taxes could also encourage growth by generating more favorable business conditions.

The value of expertise

While India is aviation’s rising star, there is still a complex landscape to navigate.

This is where Jetcraft’s local expertise is valuable. Understanding the nuances of the market – and being able to give ‘boots on the ground’ insight – allows us to empower buyers as economies shift and grow.

Ultimately, while we continue to review whether India will become aviation’s new China, we are confident in the opportunities, and Jetcraft remains on hand to support clients with their business aircraft sales, trades and acquisitions.

It’s encouraging to read that some 95% of new entrants are continuing to fly privately, according to a study featured in Aviation International News. To support the long-term success of our sector, we need to build on this momentum to ensure all users of business aviation continue to have an exceptional experience. Here’s how.

Providing value

Our industry must promote the benefits of business aviation, which unlocks opportunity and drives economic growth by maximizing efficiency and connectivity.

During the pandemic, the ability to travel without boarding packed planes and waiting in crowded terminals was self-evident. This also provides peace of mind today, on top of the additional convenience and connectivity offered, which is particularly valuable when airlines are still frequently delayed.

The value business aviation provides is only increasing as improvements in technology unlock more efficient and more sustainable travel, while access to high-speed data means aircraft can function as ‘offices in the sky’. As an industry, we can build on this by holding ourselves to the highest standards when it comes to further enhancing the business aviation experience.

Providing expert advice

Our industry also has a role to play in ensuring buyers fully utilize these benefits. Given the wide range of business jets on the market, spanning six basic categories from very light jets (VLJs) to large jets, it’s our duty to provide proper guidance and expertise to ensure new business aviation users end up with the make and model best suited to their mission profile.

Drawing on our insight into the market and a deep understanding of buyers’ needs is a key pillar of how we operate at Jetcraft. We want every customer to understand and realize the long-term value of their investment, and this starts with securing the right aircraft for their mission.

Harnessing data to offer greater transparency

By providing complete data transparency – demonstrating the full costs of aircraft ownership, including operating costs and tax implications – we can empower new entrants to confidently embark on their business aviation journey.

This is a core commitment for us, which is why we harness our access to data and technology to help new entrants fully educate themselves on the costs of owning and operating aircraft. We also provide highly sophisticated valuation techniques, ensuring our buyers secure the best price for their aircraft, as well as gaining a full understanding of its value and expected future performance.

With the pandemic introducing many new users to business aviation, there is a real opportunity to foster the long-term success of the industry by fully meeting the needs of these buyers, some of whom are now three years into their ownership journey. The future of our industry depends on championing our offer and providing insight and expertise that delivers for new and existing customers.

Additionally, at the General Aviation Terminal in Nice Côte d’Azur Airport, business aviation users can now effortlessly enter our virtual space through an interactive Jetcraft display – which begins with the clouds parting to reveal our virtual hangar through the use of motion sensor technology.

Bringing the Metaverse and VR technology into our operations isn’t simply innovation for the sake of it. While it’s still early days, and how and when the internet will evolve is yet to be determined, we know that it’s crucial we join up our full Beyond the Globe experience to learn how to meet the requirements of business aviation’s changing customer base.

An evolving audience

Business aviation users are getting younger – with Jetcraft data showing the number of buyers under 45 has risen by 20% in the last five years. Our industry needs to adapt to meet the needs of these younger aircraft owners, accommodating their busy lives, while also providing the technology-driven experience they prefer.

Luxury retailers are leading the way in this area. Several fashion houses have embraced Artificial Intelligence (AI) with brands including Tommy Hilfiger, Dior and Estee Lauder implementing AI chatbots to provide personalized fashion advice and respond to questions on social media in real time.

The Metaverse is also playing an important role in delivering a superior retail offer, with Prada creating its own virtual reality experience and Gucci having sold virtual handbags on Roblox. By 2026 25% of consumers worldwide are predicted to embrace the Metaverse, motivating brands to use the platform in forging connections and brand loyalty, especially in the high-net-worth segment.

The business case

Ultimately, if our sector is to truly continue to meet customer requirements tomorrow, it must evidence its role as a technology trailblazer today. That means implementing digital solutions to make the buying process smoother than ever, breaking down barriers and maximizing convenience.

At Jetcraft, we’re harnessing the latest, innovative technology to provide market-leading resources to inform aircraft buying and selling decisions. With over 80 in-house experts in more than 25 locations, expanding into the metaverse is part of our continued drive to go further, move beyond physical barriers and meet our clients where they are.

To go Beyond the Globe with Jetcraft and explore our virtual hangar visit: www.jetcraft.com/metaverse/