Transcript GA - epats

International University of Applied Sciences Bad Honnef - Bonn

An Analysis of General Aviation in Europe

Dr. Michael Erb Managing Director AOPA-Germany

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An Analysis of General Aviation in Europe

General Aviation (GA) in Europe

Definition Statistics Who is AOPA?

GA ´s Economic and Social Benefits

Economy – Business Travel Ecology Infrastructure Technology Transfer Security

GA ´s Perspectives Jobs in GA

1. General Aviation Definition

- General Aviation is all civilian flying except for Scheduled Passenger and Cargo Airlines, or expressed in a positive way: - It ´s

Personal Air Traffic

, just like driving a vehicle on the streets for most different non scheduled purposes

AOPA-Germany

´

s Objectives

Promoting and Defending GA ´ s interests

Advocacy •

News and Consultancy for Members

Information •

Keeping Safety Standards High

Flight Training •

AOPA-Germany has 24.000 members, the parent organisation IAOPA is with 450.000 members the biggest pilots ´ association worldwide.

www.aopa.de

Private Travel

Business Travel

Taxi

Commercial on Demand Transport

Just Fun –

Destination Unimportant

Sports

Competition

Motorsports

Driver ´s and Pilot ´s School

Law Enforcement

Firefighting

Ambulance

Agriculture

Parcel Service

Off Road / Off Runway

Crane and Skycrane

Oldtimer

Leisure and Education for the Youth

Statistics I

GA, is it mainly “Hobby-Aviation?“ Purpose Private

Private Travel, Sightseeing, Airsports

Commercial

Flight School Business Travel Aerial Work Ambulance

Government GA, Share of Revenues in % Car Traffic, PKM in % 23,50 66,1 Airlines, Pax. in % 55 56,25

3,90 32,30 5,60 16,50

16,80 33,9 45 Revenues p.y.: 980 mio. €, 5% of Total Civil Aviation with 20 bn. € Jobs: 7.200, 8% of Total Civil Aviation with 90.000

Figures for Germany, Estimate for Europe = factor 5 = 5 bn. € Revenues

AOPA-Data

Statistics II

Aircraft and Airfields

46.900 GA-Aircraft vs. ~ 4.000 Airliners 3.000 GA Airfields vs. ~ 450 Airports for Airlines

Small Aircraft and Safety

Well maintained aircraft and well trained pilots produce a high safety standard: With 100 Take Offs per year a deadly accident can be expected in average after 625 years.

2. GA ´s Economical and Social Benefits Focus on Business Aviation

Trends in European Business Travel

• More and more Markets have a European dimension • The ability to reach market partners and to be reached is an important factor for success • Railway and Road-Traffic are on longer distances too slow • Companies with European markets locate themselves in areas with International Airports and leave remote areas • New Media like teleconferences can substitute business travel to a certain extend, but not fully

What can GA offer in Business Travel?

GA saves time because: • It is fast!

- between 200 and 800km/h on the direct line • It is quick to reach!

- reduced check-in times at regional airports - a much tighter net of access points than airlines (350/40 in Germany, 3000/450 in Europe), consequently reduced feeder-times especially in remote areas • It doesn´t let you wait!

- Because of GA ´s flexibility as an individual means of transportation, travel times can be chosen on demand, without the need for time-buffers and waiting • Trave time is value time!

- GA allows undisturbed work and meetings on board

Cologne Paris London

, with 2 h stays, can be done with the airlines in ca.14 h, other means of transportation can hardly compete

Cologne – Magdeburg Brno

, with 2 h stays, can ´t be done with airlines only Magdeburg Total Journey Time in hrs Disadvantage

Rail Car

60:22 52:00

Combination Airline + Car via Vienna and Leipzig

33:20

High End Business Aviation

10:00

Low End Business Aviation

13:00 50:22 42:00 23:20 --- 3:00

Cost Comparison

Costs per Passenger and 100 km direct distance (PKM) in € Minimum Maximum Calculated Average General Aviation

23,- 300,- 59,-

Airline *)

33,- 110,-

Railway *)

24,- 48,-

Car / Upper Midsize

12,- *) Business-Class Airline, First Class Railway 40,- 17,-

Ways to use GA aircraft

• • •

Rental with/without crew

– Like a Taxi or a rented car

Sharing of an aircraft with/without crew

– Fractional Ownership (e.g. Netjets)

Full Ownership of an aircraft

– With a paid crew or “Self-Flying Businessman“

How to identify the optimum means of transportation

• Saved time and an enlarged market range alone do not justify an expensive means of transportation.

• It depends on what the traveller does with the saved time and the increased mobility.

• The “value added“ per time is the key factor. Not only high Executives produce a high added value, but also specialists in urgent cases.

Assumptions for the quantification of the “Traveltime-Effect“:

A typical enterprise uses GA aircraft together with cars, railways and airlines. Findings of a 2001 aircraft user study. Quantity: 75 journeys p.y. over 500 km distance with 3,7 passengers Saved Working Time: 1.943 hrs with car als alternative, (7 hrs per journey x 3,7 x 75)

Value Added:

GA ´ s cost-disadvantage: Average of “Opportunity Costs“ 250 €/h/pax, 250 h x 1.943 €/h = € 485.000 total, € 117.000 p.y. or 0,42 €/pkm

Resulting “Traveltime“ Benefit: 368.000 € p.y. or 4.900 € per journey, which is factor 4,5 of the amount invested in GA

.

The “Break-Even“ of GA usage is obviously lower. Not regarded are the value of an geographically increased market and the ability to work on board.

Assumptions for the quantification of the “Location Effect“:

A central and a remote location for an industrial company with 700 employees differ only in the below factors: Labour Cost: According to the spread between Hessen and Sachsen-Anhalt, 23 vs. 17 €/h, with 700 employees and 1.600 hrs Monthly Rental: € 13 vs. € 8,50 per m² Taxes: Costs for GA: Example of the “Gewerbesteuer“-leverage of 450% vs. 350% 800 flight-hrs with €1.000/h in addition to other travel expenses

Calculation Scheme for the ”Location Effect“ Cost p.y. Central Area Remote Area Cost-advantage p.y. Remote Area Labour

25.767.344 18.655.557 7.111.787

Rental Taxes Additional Costs for GA

1.672.032 245.496 0 1.092.267 190.942 800.000 579.765 54.555 -800.000

Location Effect

All figures in EUR 6.946.107

Evaluation of the “Location Effect“:

The location Effect can have an even higher influence than the „Traveltime Effect“.

It ´s a real phenomenon: Companies like Viessmann in Allendorf and Würth in Schwäbisch-Hall take systematically advantage of this effect by operating their own airfield and fleet of business aircraft, far away from any central area and airport.

GA ´s Infrastructure

Egelsbach,1.400m RWY, 80.000 mvmts. p.y., satellite airfield of FRA Airfield operating costs p.y. vary between 250&500 k €, revenues via landing and user fees With the costs for 1 km of ICE tracks = 20 mio. EUR, 4 “sports aviation airstrips“ can be built to “business standard“ airfields with a weather independent instrument approach Engpässe: IFR-Verfahren, FoF , Runway-Länge

Technology Transfer 1)

1977: Learjet Model 28/29, first production jet aircraft to utilize winglets.

Winglets, introduced by GA, today reduce fuel consumption of airliners by 5-7%!

In Germany GA burns 50 Mio. liters fuel p.y., the Airlines 12. bn. liters, 240 times more.

So GA ´s Winglets save five times more fuel in the Airlines than GA consumes in total!

Technology Transfer 2)

Boeing ´s first aircraft powered by a fuel cell was a Diamond Aircraft “Super-Dimona“ Motor Glider in spring 2008 In Brasil hundreds of Embraer EMB 202 Aircraft fly Agricultural Missions with pure Bio-Ethanol

Technology Transfer 3)

GA aircraft manufacturers like Cirrus, Diamond and Lancair have a long and successful tradition of building all composite aircraft … … whereas Boeing´s all composite 787 has not even completed its maiden flight.

GA Ecology Are GA Aircraft just noisy fuel-burners?

- Airfields remain below all Noise Limitations for German Airports (Flughäfen), Streets and Railroads - With modern Diesel engines a DA40 TDI consumes only 2,5l / 100 Pkm, less than a modern Boeing 747-400 with 3,7l A “classic“ Socata TB20 consumes 4,2l /100 PKM

GA Security, is there a threat?

W = ½ mc², so 1.200 Cessna 172s are needed to create the kinetic energy of a single Boeing 767 like at 9/11

An International Comparison

250

GA revenues in the USA:

100 bn. USD p.a. = 250 EUR per Citizen, Trend: Rising

200 150 100 50 0 and in Germany:

980 mio. EUR p.a. = 12 EUR per Citizen, only 4,8% of USA , Trend: Falling, except Business Sector

Revenue/Citizen

Why?

USA D

Area:

• Europe = 7% bigger

Citizens:

• Europe = 70% more

GDP:

• Per Citizen almost identical

International Distribution of GA

Population Density in Citizens / Square Kilometer

3. GA ´s perspectives

What will come?

• GA will not be a means of mass transportation, but it can occupy an important and growing niche in transportation • Very Light Jets will significantly expand the market, reach new target groups • New Fuels and Engines will improve ecology • New Avionics and ATM-Technolgies will improve safety and efficiency

What does GA need?

• Acceptance of GA as an ordinary means of transportation • Reduction of Bureaucratic Overhead: GA in USA has less but strict regulation, better economy, and even better safety records. A challenge for EASA!

• Adequate Network of weather independent GA Airfields • Simplification of IFR-Courses in Europe, in the USA 53% of pilots hold an IFR-Rating, in Europe only 4% • Implementation of Satellite Navigation Procedures for Approaches and En-Route

4. Jobs in Germany ´s GA

• Maintenance and Production 3.070

• Flight Schools 900 • Airfields • Air Taxi 1.050

1.250

• Police + Border Patrol • Corporate Aviation 600 ~1.000

Total: ~7.200

German Corporate GA Users Unternehmen LFZ-Typ

BASF Beech King Air 300 Heinrich-Bauer-Verlag Falcon 900 Bauhaus Bertelsmann Falcon 2000, Lear Jet 35A Falcon 50, Beech King Air 300 BMW Burda Daimler-Chrysler Deutsche Telekom Duscholux Hertie Lego Liebherr Dr. Oetker SAP Schoeller Quelle Viessmann Volkswagen Würth Hawker 800, Gulfstream V Learjet 60, Beech King Air C90 Airbus A 320 / A 319 BJ Challenger 604 Citation Jet, Cessna 340 Falcon 10 Falcon 900 Citation Jet Beech King Air 300 Learjet 31 Beechjet 400 Learjet 55 Citation V, CitationJet Falcon 900 Citation V

Thank you very much for your audience!