No Future Fears

The following post by Gil Wolin originally appeared in the August issue of World Aircraft Sales, and was reposted with permission.

Uncertainty – aye, there’s the rub… Uncertainty, about what to expect – and what to plan for. What’s the economy going to do in the next few years? How will the regulatory environment change? And how will aircraft owners, users, OEMs, and service providers respond? More importantly, how will we grow the industry, and introduce the next generation to business jet travel?

The first week in June provided the opportunity to address both uncertainties: for the near term, via the third annual JETNET iQ Summit in New York City; and for introducing the next generation to aviation, via the NBAA Regional Forum and static display at Westchester County Airport.

The former was a lively assemblage of economists and demographic experts, as well as aviation industry professionals and pundits holding forth on what the short- and long-term hold for us as an industry and as citizens of an increasingly interconnected – and interdependent – world.

The latter was the second such gathering, and the hangar and temporary ramp tent at Panorama was jam-packed with booths and displays – and a static display chock-a-block with business aircraft buffed and polished to a fare-thee-well. I couldn’t resist this opportunity to introduce the beauty and comfort of aviation to the next generation. I offered to escort my six-year-old niece Emily (and her parents) on a tour of the Regional Forum’s static display.

It was with the kind understanding of NBAA staff that we made our way to the remote ramp, where she boarded her first, second, and third business jet, and her first and second helicopter. Now Emily is a very bright and well-mannered young lady. And that made it easy for the various OEM reps to greet her with a cheerful “Welcome aboard,” making her first encounter with aircraft an upbeat experience. Suffice it to say, I think we have another aviation aficionada in the making. And while the JETNET iQ was not quite as uniformly upbeat, it did provide some signposts as to what we can expect from markets and regulatory agencies over the next few years – and helped eliminate some uncertainties.

The good news, according to the first speaker, economist Brian Beaulieu of ITR, is that while the remainder of 2013 and 2014 will be flat, he expects to see robust growth for 2015 through 2017, with interest rates remaining low. He forecasts a downturn in 2018 and 2019, but the scary news for the average US homeowner – by 2020, 30-year fixed-rate mortgages will no longer be available. Rolland Vincent, JETNET’s partner in the iQ Summit and noted aviation market research analyst, added BizAv industry research to Beaulieu’s observations. This year will finish with 670 business jet deliveries, but we’ll see a 7.5% uptick to 720 units in 2014.

It’s not just the number of units forecast, however – it’s the product mix that’s fascinating. Large Cabin, long-range aircraft remain the order of the day, fueled by the continued growth of international business – and the increasing number of Ultra-High-Net-Worth-Individuals (UHNWIs). Yes, we’ve added yet another acronym to our industry, one that defines a segment with significant growth potential.

According to David Friedman of Wealth-X, a provider of intelligence on such folks for luxury brands, private banks and charitable organizations, there are 2,100 billionaires worldwide, with an average net worth of $2.9 billion. There are also more than 187,000 individuals in the world with a net worth of at least $25 million. While a $25 million net worth might not qualify as a G650 prospect, any charter sales rep would give his or her eyeteeth for a list of those email addresses.

Cash is king today in ways not seen in recent times, according to the banking panel chaired by Michael Amalfitano, Managing Director and Executive Head of Banc of America Leasing, Global Corporate Aircraft Finance. Cash buyers today represent 77% of all business jet transactions, up dramatically from the traditional 50%. New and like-new late model aircraft are the order of the day, with asset protection like hourly cost maintenance programs a “must.” Even nonbank financial institutions today face compliance with post-recession requirements such as Basel III and Dodd-Frank, as well as heightened scrutiny on each transaction.

A rosy outlook? Not quite. There is much on the horizon to give us pause. But with research and facts such as were presented at JETNET’s iQ Summit, we can plan and take action accordingly, rather than be paralyzed by nameless dread. Oh, and about the next generation? According to the note I just received from her mother, Emily’s new game at school is “airplane.” The youngster is the hostess, and some of her friends are pilot, passenger and flight attendant. Thanks to her “research” conducted at the NBAA Regional Forum, Emily knows that business aircraft are fun, and air travel is something to look forward to. And that helps allay my fears for our industry’s future.

Gil Wolin draws on forty years of aviation marketing and management experience as a consultant to the corporate aviation industry. His aviation career incorporates aircraft management, charter and FBO management experience (with TAG Aviation among others), and he is a frequent speaker at aviation, travel and service seminars. Gil is a past director of the RMBTA and NATA, and currently serves on the Advisory Board for Corporate Angel Network and GE Capital Solutions-Corporate Aviation. Gil can be contacted at,


JETNET Announces 2012 JETNET iQ Global Business Aviation Summit

UTICA, NY – JETNET LLC, the world leader in aviation market intelligence, announced it is returning to
New York City for its 2012 JETNET iQ Global Business Aviation Summit, to be held June 5-6, 2012. Following on the success of last year’s Summit, this year’s conference theme is “Igniting Ideas. Provoking Change.”

JETNET is promoting Summit speakers and panelists as a virtual “Who’s Who” of experts with unique perspectives on business aviation’s situation and future, including industry analysts, bankers, brokers,
wealth consultants, lawyers, sales & marketing leaders, and C-level executives. The Summit’s goal is to
provide attendees with insights from JETNET iQ’s latest Global Business Aviation Surveys and forecasts.
Presentations will also focus on the changing perspectives of the wealthy, a review of business aviation
marketing’s past, present, and future, China’s emergence as a leading source of aircraft sales and
(increasingly) production, and the evolution of customer requirements.

Three industry panels—Bankers and Brokers, OEMs Perspective, and Leadership and Customers—will discuss topics of particular interest in aircraft sales, financing, and market development”. Keynote presentations by Jeffrey Shane, former U.S. DOT Associate Deputy Secretary and Under Secretary for Policy, and NBAA President and CEO Ed Bolen, will address election year implications for business aviation and the “No Plane, No Gain” advocacy program.

“Business aviation is all about the energy and opportunity that are generated when business people come together face-to-face”, said Vincent Esposito, JETNET President. “We are delighted to have the opportunity to host such a prestigious group of thought leaders in one place, at one time.”

Attendees can expect “…a fast-paced, content-rich day full of unique insights and the latest industry intelligence from some of business aviation’s sharpest minds,” added Esposito. “These are the ingredients that promise to make the 2012 JETNET iQ Summit a must-attend event.”

For the convenience of attendees, the 2012 JETNET iQ Summit is once again scheduled to coincide with the New York-area NBAA Business Aviation Regional Forum, to be held this year at Teterboro Airport on June 7.

Industry veteran Susan Sheets-Brogan returns again this year as JETNET iQ’s Summit Chairperson. For further details on the conference and registration requests, please e-mail Susan at or

Available on a members-only basis, JETNET iQ is a premium advisory and forecasting service for
business aviation.

Diane Levine-Wilson

JETNET iQ first Summit: “Igniting Ideas, Provoking Change” a Success.

On June 6th and 7th, JETNET LLC and our affiliate JETNETiQ held our first Global Business Aviation Summit. The venue was the lovely InterContinental Barclay Hotel in New York City, NY.

We welcomed attendees from all sectors of the industry, manufacturing, legal and finance, marketing and technology to listen to and participate in discussions with our exceptional line up of speakers. (I have attached our agenda so I don’t make the mistake of leaving anyone out)

JETNET iQ is the brainchild of Rolland Vincent, of Rolland Vincent Associates LLC . He came to JETNET with the idea of creating an aviation intelligence forecasting product based upon real data. He brought his idea to us knowing the advantage such a product would have by having a staff of researchers with 20 plus years worth of market contacts and trusted interaction as the foundation of survey gathering. Knowing full well that through these relationships, JETNET could get responses where no other company could. Add to that the fact that JETNET researchers survey the world in eight languages.

JETNET iQ is structured into three segments; the quarterly industry surveys, the annual industry summits, and one on one personal consulting. For a full description go to Continue reading