Supply Chain Recovery Is Biggest European Bizav Challenge, Survey Finds

GENEVA—Supply chain recovery is the No. 1 challenge cited by European respondents to a survey of business aviation owners and operators by JetNet iQ, with environmental and sustainability issues No. 2, followed by the geopolitical environment, attracting and retaining talent and economic pressures.

The top challenges cited differ somewhat by region.

In North America, which includes the U.S. and Canada, the top challenge is in attracting and retaining talent, followed by supply chain recovery, aircraft maintenance and overhaul capacity issues, economic pressures, such as interest rates and inflation, and government regulations. In North America, sustainability did not make the list of top five challenges.

Answers to the question, “I/we will seriously consider flying with sustainable aviation fuels (SAF) in the next 24 months” also differ by region.

In Europe, 57% strongly agree or somewhat agree with the statement, while in North America, that figure is 35%, including the 9% who say they strongly agree, compared with 25% in Europe.

For the U.S., “a whole bunch of them don’t think it’s a big deal,” says Rolland Vincent, president of Rolland Vincent Associates and JetNet iQ creator and director. “Maybe it goes away and it’s a fad. . . . It’s not today’s problem. Today’s problem is people; today’s problem is supply chain; today’s problem is MRO. I think it will change. It will move around. I think Europe leads here.”

Sentiment around the business aircraft market is different in Europe than in North America, the survey reveals. Operator sentiment, which reflects current confidence in the business aviation market, is -8.9% in North America, compared with 17.9% in Europe.

“The mood in North America has dropped below the other regions of the world,” which has not been the case historically, Vincent says. Together, North America and Europe account for nearly 80% of the business aviation fleet.

The results in North America are a reflection of lower consumer confidence and higher interest rates, Vincent says. “They are cranky that money costs money,” he said of today’s interest rates.

The last time confidence declined was in 2020 during the COVID-19 pandemic, when sentiment dropped to a -40% but quickly recovered. In addition, sentiment declines about every four years in the U.S. from uncertainties around the presidential election and other issues.

Across the ocean, “Europe’s got a geopolitical challenge right now, which in the U.S. is a long way away from reality,” he says. “That stuff going on in Gaza, which everyone is worried about, [plus the war in Ukraine,] these are happening on Europe’s doorstep.”

Of the respondents in Europe, 51.8% said the market is past its low point, 33.9% said the market had not reached a low point, and 14.3% said it was at its low point. In North America, 41.6% of respondents said the market is past its low point, 50.5% said the market had not reached its low point, and 7.9% said the market was at its lowest point.