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| RECESSION AND BUSINESS AVIATION IN EU Brussels - June 1, 2010 Eurocontrol analysis shows that, in spite of a significant short-term reduction in the demand for business jets, business aviation proved the most stable market segment during the recession period.
Figure 1 – Monthly growth of largest market segments From the graph below, it is obvious that business aviation in Europe was the most stable aviation market segment during the recession, even during the worst period of 2009. This is a positive achievement, given that the significant economic downturn of 2008-09 resulted in a major short-term reduction in the demand for business jets. In the longer term, resumption of global economic growth is expected to result in a strong recovery in the demand for business jets. The strong fundamentals of the business jet industry are expected to remain unchanged. ![]() Financial Times Focus On Central European Private Aviation
London - May 5, 2010 Financial Times reporter Mr. Jan Cienski interviewed Ms Dagmar Grossmann for the newspaper's special report on corporate aviation. Profile: Education is all part of the full jet service By Jan Cienski in Warsaw Central Europe is a great place for taking existing business models from more advanced economies and transplanting them. That was what occurred to Dagmar Grossmann when she was looking for a place to get back into the jet charter business. Chartering jets for business people who have to move quickly from city to city is old hat in the US and western Europe, but it was a relatively new idea in central Europe in 2004, when most of the region was joining the European Union. “I did market research and found that there was nothing in central Europe,” says Ms Grossmann. Although she initially thought Poland made a better choice, she ended up settling on Prague, which has become the region’s main centre for business aviation. Prague for some reason is the main hub for business aviation,” says Ms Grossmann, pointing out that Bratislava, the capital of Slovakia, is too close to Vienna to make sense as a hub, while business in Budapest has never really taken off. She is planning to base an aeroplane in Poland later this year, as she see great potential for the Polish market. (Source: Financial Times, Tuesday, May 4, 2010) To read the interview at FT web, please follow this link (free registration necessary) STRONG RECOVERY OF BUSINESS AVIATION IN CEPA COUNTRIES IN 2010 Prague - June 3, 2010 The two graphs below compare movement in the business aviation market segment in CEPA member countries. In the period January–May 2010, strong recovery took place when compared to the same period of 2009. This confirms the Eurocontrol analysis that a substantial increase in demand for business jets in the post-recession period can be expected (see Recession and Business Aviation in EU). DAIO Report - Business Aviation in 2009 (%)
![]() ![]() DAIO Report - Business Aviation in 2010 (%)
![]() ![]() by Jan Hladík CEPA Success Gives Birth to Southern European Daughter Association, SOPA Prague - June 1, 2010 The large and enthusiastic reaction to CEPA inspired its founders to establish a daughter association to support business aviation in Southeastern Europe. In CEPA we are now focusing on analysis of our successful conference which was held at the end of April 2010 in Prague. Our activities are primarily oriented toward establishing our association in Central and Eastern Europe (CEE). In the Czech Republic, we are communicating with local authorities, airports and other key players in the business aviation market. Simultaneously with the continuous research of the CEE market, we are working on preparing of a new business aviation fair, CEPA EXPO 2011, which is our top priority at the moment. Based on the positive response to CEPA’s association activities, CEPA has grown to establish a daughter association in Southeastern Europe to support private aviation in the region. The association, SOPA (Southeast Europe Private Aviation), will focus initially on Cyprus, Greece, Turkey and Lebanon. The geographic location of these countries is ideal for developing business aviation, particularly in the emerging market of Turkey, which is a primary driver in the region. SOPA will be based in Cyprus. Cyprus represents an ideal hub for reaching count ries in the Middle East, which are now going throu gh post-war reconstruction. Also, because of business tax benefits, Cyprus has large growth potential. Cyprus is close to busy trade routes linking Western Europe and the Arab world to the Far East. More than 45,000 international businesses use Cyprus as a base for operations, and the growth rate ranges around 4%, well above the EU average. Current research shows that the activities of Turkey as it moves towards EU accession, together with investments in post-war reconstruction and the growing economies of the Middle East countries, guarantee a positive business atmosphere for investors in the region. We believe that SOPA will be helpful in the region by supporting potential investors and professionals in the business aviation field. More information at: www.sopa.aero by Jan Hladík WHAT ID NEEDED TO DEVELOP BUSINESS AVIATION IN CEE Prague - June 29, 2010 The so-called Eastern Bloc is history. As for the business aviation industry, all European operations, be they charter operators, airports or service providers, are becoming part of the same conglomeration. By Cdr. Bud Slabbaert Don’t look at Western Europe as your role model. From my perspective, I see many developments in Western Europe that are very disappointing. CEE needs to develop its own business models and aim to be significantly better. With an objective view of things, I am very interested to see how CEPA and SOPA are developing. As far as I can observe, the basic principles behind the associations are good and the intentions are very promising. I believe in a positive outcome. Don’t believe that everything from Western Europe is better. Many things are, but certainly not everything. As one of my own activities, I’m working on a new jet center concept for an emerging market; no, unfortunately not in CEE. I’m integrating benchmark ideas from the USA and combining them with the best from the geographic area where this concept will be implemented. Most of all I’m working on a new concept with new ideas that may not have been shown before. It does not make sense to copy others and try to be similar to them. A smart concept goes beyond what anyone else has done before. CEE is an emerging market that has potential to go beyond. Central and Eastern Europe, as well as the Eastern Mediterranean region, have tremendous possibilities. But if one doesn’t recognize and grab an opportunity, it may be gone before one realizes it. These countries have talented people; give these talents chance. Try to bring some of these good people who moved to the West back to their home countries. There are investors from within as well as foreign ones who are seriously interested in these regions; don’t disappoint these investors. Listen to those who were successful in the West; don’t listen to those who don’t have a track record but see CEE as a playground to experiment to make some fast money. Business doesn’t come to CEE by itself. Anyone who believes that is dreaming and is subject to failure. One has to earn business. The way to achieve success is to try harder and to be better. Be genuinely willing and make an all-out serious effort. Don’t be offended, I like to say things straightforward: CEE has yet to prove itself! You have the chance. You can do it. So, get at it! The author, Cdr. Bud Slabbaert, is an expert in developing business aviation at airports. He is initiator and conference chairman of the BA-MEETUP Conference which will take place in London, March 14-16, 2011 ( www.ba-meetup.com). CEPA Unveils EXPO 2011 Prague - April 22, 2010 Prague will host the Central Europe Private Aviation (CEPA) association’s CEPA EXPO 2011, the very first event of its kind in Central and Eastern Europe, the organization announced during the inaugural CEPA 2010 conference. “This is a huge and exciting first for the region’s private aviation industry. The timing is absolutely perfect; business aviation here is booming and CEPA is ready to help its members reach the next level of growth,” said Dagmar Grossmann, chairman and founder of CEPA and CEO of Grossmann Jet Service. The CEPA EXPO will be held September 29–October 1, 2011 at Vodochody International Airport in Prague. Organizers expect at least 120 exhibitors with a total event turnaround of 1 million euros. The EXPO will feature aircraft and business jets on display on the exhibition grounds, with two days reserved exclusively for industry insiders and one public day on Saturday. “The EXPO will be a major boost to the Czech Republic’s economy as the center of Europe becomes the hub for aviation activity in the region,” said Ms Grossmann. “The EXPO will bring foreign investors and visitors who will take advantage of Prague’s top accommodation and services.” Today, CEPA is fostering cooperation between industry players to create a unified network for business aviation in the region and internationally, providing foreign investors and clients an easy avenue into private aviation in CEE. “We will see a huge upswing of deals and business being done here as investors make contacts and inroads to everything the region has to offer,” said Jaroslav Malinsky, member of the CEPA board. Vodochody International Airport is situated just north of Prague. It represents a great option for approaching this major European city and its centre, just 23 km away. Jiří Matoušek, new CEPA board member Prague - July 13, 2010 Mr. Jiří Matoušek joined CEPA earlier this month as a new member of the board. For the majority of his career, Mr. Jiří Matoušek has been working in management positions in the aviation and travel industry and so sees his engagement in CEPA as a great challenge, offering him deeper insight into another extremely interesting and promising sector of business aviation. When asked his opinion, he replies without hesitation: “After more than 15 years in the regular airline business, it is really exciting and refreshing to learn about a market segment where there is great potential for growth and, first of all, where customers really are the main focus. Among the top priorities in business aviation, there is not only comfort and perfect services on board, but also seamless and time-efficient processing on the ground, including safety procedures. Before joining CEPA, I used to think about business aviation like most people do: private jets are good only for wealthy celebrities who want to show off … “It took me just a short ride to find out that this cliché was wrong, like most clichés. Business aviation is very much about saving time and money, about cost-efficient solutions for both individuals and companies, about what we call real 'value for money'. From my days with regular airlines, I still remember how difficult it was to get through customs and safety procedures, how unfriendly the cabin was for travelers who wanted to work or discuss sensitive business issues on board and, last but not least, how many important spots on the European map were not covered by regular airlines at all … “I am really looking forward to my first trip with a business jet to enjoy the pleasure of flying like I did in the good old '90s.” Mr. Matoušek also gave his view about the priorities of CEPA in the weeks and months to come: “CEPA EXPO in 2011 is an absolute priority for us and for our members. It is not just an exhibition. It is an important step toward achieving the main goals of CEPA: becoming a networking platform for business aviation players in the Central European region and serving as a bridge between CEE and such advanced business aviation markets as the UK, France, Italy and Germany, just to name the largest ones. “Simultaneously, we will focus on improving the conditions for business aviation in the region. We also have the ambition to offer a more sophisticated benefit package to our members. Having said all that, CEPA wants to be a good role model for its daughter, SOPA, which was recently introduced as a similar platform for business aviation in the Southeastern Europe. To achieve all this, we need the continuous strong support of our members.” Czech Republic as Future Aviation Manufacturing Leader Prague - July 13, 2010 The CEE countries generally have a strong manufacturing base. During the communist era, each country served a unique purpose under the Soviet-planned economy, and automobile manufacturing for the entire Soviet economy was always the preserve of Czechoslovakia. Because of this strong manufacturing base, the Czech economy is one of the most stable and prosperous in Central and Eastern Europe. It grew more than 6% annually from 2005 to 2007, and 2.5% in 2008, but it has suffered more recently. The real economy shrank 4.1% in 2009 as the global economic downturn decreased demand for Czech manufactured goods. Aviation is no exception, and the traditionally strong Czech aviation manufacturers are threatened by worldwide defense-budget cuts. The new wave of LSAs seem to be going from strength to strength and, in line with Cessna’s philosophy of introducing customers to aviation with the Skycatcher, and progressing them through the entire fleet right up to the high-end Citations, it would not be outlandish to envisage these LSA manufacturers considering an upscale move. However, there is a significant risk. Traditional manufacturers in more mature global economies are currently faced with excess capacity, which is driving down their prices. This will pose a competitive challenge for the Czech Republic, and the country’s open investment climate may no longer entice foreign direct investment. Czech entrepreneurs can outmaneuver the traditional players but they will also have to overcome the culture of bureaucracy which still pervades. The author, Edwin Brenninkmeyer, is a Founder and CEO of aviation consultancy company Oriens Advisors providing business expertise to the light jet sector. Edwin is also on the board of LinearAir, a successful US air taxi operator. Light Jets Europe 2010 Flying light, Business Class, 4th annual event 23/24 September, 2010 - London Oxford Airport - United Kingdom Prague - July 13, 2010 If you are in the business of flying, supporting or servicing the light jet and air charter market, you should come to London Oxford Airport from September 23 to 24, 2010. This event is an opportunity to gain a better understanding of how the light jet market is unfolding and how these aircraft have been accepted by customers, pilots and the industry in general. How do banks and insurance companies assess the aircraft and does the air taxi model (much touted three to four years ago) stack up now that the market has matured? What of other issues affect compliance and regulatory control? What about competency issues surrounding pilot training, emerging markets, residual values, FBO handling, ATC requirements, future initiatives, new aircraft design and support? What about the operators themselves? Does flying light make commercial sense when the current economic outlook in Europe is a tad gloomy? If these issues are relevant to you today, then why not take advantage of the early-bird booking offer which runs up to July 23? The delegate fee is £ 350 + VAT until then, but rises to £ 425 + VAT thereafter. CEPA and BBGA members enjoy further discounts. Full details and the program are at www.miuevents.com/lje10. You can register online at www.miuevents.com/lje10, by telephone on +44 208 332 2211, or by email at adp@miuevents.com. |
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CSR – the base for business in these daysCorporate social responsibility – it is not only acting green and saving the environment, which, in our industry, is very difficult. It is also about following rules, ethics and supporting others. When we founded CEPA, it was just to bring our experience to Central Europe. Whenever one sets up a new market, there are many critics and a lot of doubt, but it is about doing it, or even doing it better. We want to focus on ethics and helping people in the area connect with one another. The CEPA EXPO in particular will be a new start, in accordance with our social responsibility, now that the market is picking up significantly, but we should not be overly optimistic. Cost awareness and a professional attitude are important, business ethics are crucial, on top of this, honesty helps create trust, and trust is the sister of security in both private relations and in aviation. Welcome on board. ![]()
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