ACJ: Corporates Increasing Business Use of Jets, Looking for Efficiency

U.S. corporations are increasingly focusing on how their aircraft can help them run their businesses, new research commissioned by Airbus Corporate Jets found. Researchers surveyed U.S. companies with annual revenues of more than $500 million, with results revealing that 83% of have increased both domestic and intercontinental business travel.

In making purchase decisions, 67% cited new tax incentives (i.e. bonus depreciation) adopted by the U.S. Congress this year as a reason for purchasing aircraft, while 63% emphasized focus on operational costs, and 59% on newer/better/more efficient models. Also, 51% said they are looking to upgrade to models that can make greater use of sustainable fuel, and 41% cited a need for bigger aircraft.

“This research reinforces the importance U.S. companies are placing on efficiency, sustainability, and productivity from business aviation,” said Airbus Corporate Jets president Chadi Saade. “With advances in sustainable fuels, optimized fleet management, and new-generation aircraft, the sector is well-positioned to meet the needs of companies looking to expand responsibility while ensuring their employees’ productivity and well-being.”

The study found a growing link between business aviation and sustainability, with nine in 10 firms interviewed indicating that they were investing more in fleet management technology to optimize routes and reduce fuel burn. Also, 90% of charter users are prioritizing newer, more efficient aircraft.

Nearly nine in 10 believe that more affordable and easier access to sustainable aviation fuel (SAF) would boost sales. The same amount believe that SAF use will grow over the next five years.

Researchers also surveyed business aviation financiers and brokers, finding that nine in 10 expect the market to grow over the next two years, with 11% predicting strong growth. Some 77% believe business aviation financing access will increase in the next three years, providing more options for fleet upgrades.

Meanwhile, 93% believe finance rates will become more attractive, and 80% expect demand for fixed-rate floating structures to rise. Financiers and brokers also believe sales of large business jets will increase over the next five years (89%), and 84% see the trend towards midsize and larger jets strengthening.

Airbus Corporate Jets believes that these findings reinforce the underpinnings for its ACJ TwoTwenty. “This study confirms what we are seeing in the market: U.S. corporations are not only using business aviation more frequently, they are also looking to upgrade to larger, more capable aircraft,” Saade said. “Airbus Corporate Jets is proud to be at the forefront of this shift with aircraft such as the ACJ TwoTwenty, designed to meet the evolving requirements of corporate America.”