Flight hours as an economic indicator

The 2013 year-end Business Aviation Index recently released by Jet Support Services, Inc. (JSSI) shows that global business aviation activity grew by 4% in 2013, surpassing the 2.9% growth that the IMF estimates took place in the world’s GDP in 2013.

“The global growth in flight hours is a positive indicator for the health of both the aviation industry and the economy as a whole,” said Neil Book, JSSI president.

“When viewed by region, the data is generally consistent with macroeconomic trends across the globe,” he continued. “Business aviation continues its strong rebound in the U.S., with 6% year-over-year growth and 7% quarter-over-quarter growth,” he added.

The index tracks the number of hours that business aircraft have flown by region, industry and aircraft type.

It shows that the Manufacturing, Power & Energy and Real Estate industries all posted impressive gains, while the Construction, Financial Services and Healthcare industries contracted.

However, when looking at the data by region, business aviation experienced growth in virtually every market, both on an annual and quarterly basis.

“Although European flight hours were down from the third quarter, flight activity for our European-based clients is still up 12% over Q4 2012,” said Book noted.

Emerging markets in Asia, the Middle East and Africa were up by over 20% since last year, while flight hours in Latin America remained flat.

Finally, observing business aviation activity by aircraft type provides insight as to exactly how the business community is flying. For the first time, the JSSI Business Aviation Index is releasing data on aircraft type usage:

“It is encouraging to see growth from single engine turboprops to large cabin aircraft. This tells us that businesses large and small, along with the owner/operator community, are flying their airplanes again,” Book said. “As the global economy has recovered, we initially saw hesitation from businesses to start flying again. We’re now seeing this hesitation dissipate. It also doesn’t hurt that the Obama administration’s negative rhetoric toward the business aviation community has quieted somewhat in his second term. We look forward to seeing how the business aviation industry grows and evolves throughout 2014 and beyond both in the U.S. and around the globe.”

For more information: JetSupport.com