Avinode Business Intelligence Unveils 2013 Market Forecast at NBAA 2012

Press Release   •   Oct 30, 2012 16:45 EDT

MIAMI, FL – OCTOBER 30, 2012 - Avinode forecasts a 0.1% decrease in business jet activity for the United States in 2013. When that forecast is broken down on a regional level, it reveals that some regions will fare better than others. The South and West, with their seasons targeted to entertainment and discretionary travel, are expected to experience 0.4% and 1.3% growth respectively. “The more business-travel focused Northeast and Midwest continue to struggle,” says Magnus Henriksson, Business Unit Director, Avinode Business Intelligence. These regions should see a 1.2% traffic decline in the Northeast and 3.9% decline in the Midwest.

For Europe Avinode forecasts a 3.2% decline in business jet activity during 2013. As in the United States, Europe sees substantial seasonal variation between its Northern and Southern regions resulting from the differences in traffic drivers for the two regions. Avinode projects that the European South, which is mainly driven by leisure travel, will experience a 4.3% decline in traffic in 2013. Northern European traffic, which is mainly composed of business travel, however, will see a decline of only 1.3% year-over-year.

Projected Category Differences
Over the last few years, the light jet (LJ) category has experienced a fairly negative trend in terms of actual flights. Avinode predicts that this trend will continue in 2013 with December 2013 year-over-year numbers down 2.2%. The entry level jet (ELJ) category appears to be stealing flights from the LJs as evidenced by a continuously positive trend for the category. Since January 2009, ELJs have gone from performing 6% of all U.S. flights to 9%.

Avinode expects this trend to continue and that ELJ will have increased to a 10% market share by the end of 2013, with a year-over-year growth of 4.4%. The midsize jet category is currently the second largest in the U.S. and is projected to grow by 0.1% next year. Meanwhile, year-over-year projections show the heavy jet category down 1.7%, super midsize up 0.3% and super lights up 1.6%.

The trend in Europe shares similarities with the United States, but is far more aggressive. Europe is experiencing a downgrade trend, with heavy jets and super midsize categories the most affected. The decreases in the heavy and super midsize categories have resulted in increases in the mid and super light categories. Meanwhile, ultra long range jets continue their positive growth trend, seemingly unaffected by the overall trends in the market.

U.S. Forecasts for 2013 
Entry Level Jets: +4.4%
Light Jets: -2.2%
Super Light Jets: +1.6%
Midsize Jets: +0.1%
Super Midsize Jets: +0.3%
Heavy Jets: -1.7%
Ultra Long Range Jets: +2.4%

European Forecasts for 2013
Entry Level Jets: +0.3%
Light Jets: -8.0%
Super Light Jets: +0.4%
Midsize Jets: -2.2%
Super Midsize Jets: -9.1%
Heavy Jets: -5.3%
Ultra Long Range Jets: +8.3%

About Avinode 

The Avinode Marketplace is the world’s leading tool for buying and selling air charter online. Over 6,000 aviation professionals use Avinode daily to buy and sell charter flights worldwide. More than 3,000 aircraft are currently listed in the marketplace, which features online quoting, availability reports, integrated scheduling, empty leg reports, and safety data.

Avinode also provides up-to-the-minute market data and trend reports for the business aviation market through Avinode Business Intelligence. Stay on top of market trends with Avinode’s weekly Business Intelligence newsletter, featuring trip demand, availability, and pricing indexes as well as popularity reports for the most requested aircraft models, most frequented airports and the most traveled routes. In addition, Avinode BI offers custom reports, tailored to fit your personal data requirements.

Corporate headquarters is in Gothenburg, Sweden with two sales offices in the Americas, Avinode Inc., in Miami, Florida, USA and Avinode Latin America in Belo Horizonte, Brazil.