Story ID: 363
Bizav OEMs Optimistic about New Customers
By: Kerry Lynch
Caption: During EBAA Connect, bizav OEM heads agreed the market has attracted new buyers, but they still worry about pandemic, supply chain, and workforce issues.
Word Count: 1678
Business aviation OEMs are increasingly optimistic about an industry rebound with reports of as many as one million customers flying private for the first time during 2020, but the company leaders believe they still face a range of challenges from ongoing restrictions and supply-chain shortages to workforce diversity. The heads of nine OEMs gave their views on how the pandemic has shaped the industry and discussed their outlook on the future during an EBACE Connect Keynote “Lightning Round with the CEOs” session.

“We were not really prepared for such a pandemic crisis,” conceded Dassault Aviation CEO Éric Trappier. “We had to adapt ourselves.” But, he added, the industry learned it could adapt during a major crisis.

Bombardier president and CEO Éric Martel noted that his company made this shift as it was transitioning to a pure-play business aviation company. “This was not without pain,” he said, adding that like the rest of the industry, “we needed first to take care of the safety of our people…that was a challenging time for all of us.”

Gulfstream president and CEO Mark Burns noted that his company made a decision to focus on health and safety, business continuity, and good stewardship, not only in terms of fiscal discipline but also to ensure that investments continued to be made throughout the pandemic.

“The first thing we learned is how much we missed seeing our customers face to face,” added Airbus Corporate Jets president Benoit Defforge. However, the industry was able to adapt, underscoring another key lesson: “The private aviation industry is quite resilient.”

Michael Amalfitano, president and CEO of Embraer, agreed with that sentiment, saying, “During the pandemic period, business aviation fared very well. The industry has proven to be resilient.” Business aviation provides for fewer “touchpoints,” attracting travelers during the pandemic.

“So, in turn, we have seen more first-time buyers than ever before, while corporations are also experiencing renewed interest in private aviation,” Amalfitano said.

Boeing Business Jets president James Detwiler added, “We have seen a significant increase in interest from a very important segment of our customer population, and that is the charter business.” Noting reports that more than a million people have traveled private for the first time, Detwiler said, “They now see the value of chartering a private jet for both work and leisure purposes.”

A year ago executives question whether the pandemic may help turn some travelers to business aviation, Martel noted. “A year ago, this was just a theory, but it became true through the year. I am confident that if we do a good job together as a community, we will attract a lot of new people and they will stay in our business.”

Seeing this opportunity, Textron Aviation last summer launched its “A Different Sky Awaits” campaign to educate on safe travel through private aviation, said Textron Aviation president and CEO Ron Draper. “That campaign was very well received. And since that time, I think we're all seeing the industry data of new entrants coming into private aviation.”

Burns further noted that Gulfstream has seen first-time buyers through the pandemic. "People started to reassess their situation.”

“The pandemic was challenging last year, but I think it has created for our industry an amazing opportunity looking forward as borders reopen,” Martel said, noting the anticipation of a bit of a surge when that happens.

“The outlook for aviation is strong,” agreed Detwiler. 

However, while presenting an optimistic picture, the OEM heads agreed that they face obstacles. Detwiler pointed to pandemic-related quarantines and restrictions, as well as “the continued challenge of not being able to visit with our customers in person.”

Pilatus CEO Markus Bucher said his company’s biggest challenge has been supply-chain disruption, calling it "the single biggest risk in our business.” Bucher said the company has had to evaluate supply channels moving forward, specifically “whether our sourcing strategy is right.”

Draper echoed concerns about supply chain, saying Textron Aviation is seeing supply constraints and inflation with raw materials. 

However, despite the complexities of the pandemic, Daher CEO Didier Kayat praised the efforts of both the FAA and EASA, saying they “have been very helpful and supportive…they have been very efficient” even with the limits in contact.

The industry leaders also mulled issues such as workforce diversity, bringing in a younger generation of workers, and efforts to remain sustainable.

“It's important to emphasize our industry is more than just pilots, mechanics, technicians. It's engineers, accountants, specialists, programmers, public relations, and business management specialists,” said Amalfitano. “And we need to find new ways to attract people to our continually evolving industry. The aviation industry encompasses multiple career paths and as an attractive industry with exciting new technologies.”
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