Business aviation is being unfairly attacked by both the U.S. government and media. However, this critical manufacturing industry continues to attract more jobs and prosperity to the U.S. economy. Political and media leaders ought to be more careful when attacking this valuable domestic industry.

Uncertain government legislation, foreign investment support, sputtering domestic business activity, and elite class resentment…the U.S. economy? Perhaps. But these attributes definitely characterize the private aviation industry, as evidenced in events and stories from just this past month.

They’ve been here for years, very light jets (or entry level jets) that is, and they’re finally making inroads within the charter industry. Yet innovative charter models haven’t accompanied this development. In the meantime, slow progress is being made in both new aircraft and business models while the airlines continue to frustrate travelers.

As commercial airline hassles mount, the DOT stepped in and ordered consumer protections. However, airlines continue to raise fares and cut capacity, while focusing attention on premium business travelers. A similar, disparate trend continued in business aviation with the upper end thriving while entry level charter sales and demand dropped.

Large cabin aircraft and emerging economy demand are helping aircraft manufacturers weather current economic challenges. However, the growing disparity between international vs. U.S. and large cabin vs. small cabin demand may be hurting the future of the industry.

The tide appears to be turning in business aviation’s favor as the sector continues to find its footing amidst the economic recovery. Manufacturer’s positive 2010 results and encouraging government actions contributed to the sector’s optimism.

As business travelers fuel record profits at commercial carriers, travel conditions don’t appear to be getting better. Plus constrained capacity, ancillary fees, and fuel prices are certain to drive up fares; but can business aviation providers capitalize on these trends? Innovation and simplification of business aviation buying will be critical to future success.

While business travelers grappled with holiday related travel hassles, surveys indicate that they’re increasingly willing to pay for convenience and flexibility. As anecdotally reported by several operators, it even appears many sought high priced business aviation alternatives to avoid such hassles. Several announcements in December portend well for lower priced business aviation alternatives.

As has been the case with the business aviation during previous business cycles, the industry continues to exhibit lagging indicator behavior. Between low flight activity, weak mid & light class jet production recovery, and buyer pricing pressure, business aviation is struggling to recover to pre-recession levels, unlike commercial aviation. However, hopeful signs are evident this holiday season.

While improving business travel conditions are helping the commercial airline industry bounce back, business aviation has yet to experience an improvement of the same magnitude. While several recent moves by operators and manufacturers are helping, biz av’s high price point continues to be a barrier to a more robust rebound.

While commercial airlines are enjoying a return of revenues and passengers close to pre-recession levels, the business aviation sector continues to adjust to persistent weakness. Layoffs, down-sizing, and uncertain forecasts are creating challenges within the industry. Support continues in the form of positive press and congressional actions.

Recent trends in the travel and business aviation industries are indicating a “new normal” in buying behavior. From stricter air booking policies for corporate travelers to downward buying trends in business aviation, new spending habits appear to be taking hold…and becoming “normal”.

This week we are officially kicking off our e-newsletter series. Read this to learn more about our e-newsletters.

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