The increase in first-time buyers, the pandemic, and younger wealth is changing the dynamics of the aircraft industry, Michael Amalfitano, president and CEO of Embraer Executive Jets, said this morning during the opening day of Corporate Jet Investor Miami 2021. “You have to recognize and embrace what's happening,” Amalfitano said, in particular with “who's flying—and that's changing very rapidly.”
He noted the swing in first-time business aviation users—up 50 percent over historical data—while buyers are up 35 percent. “When you look at that growth at the bottom, the access is growing,” he said. “You have to start thinking about what are they, what do they want? Who are these people? And you recognize they're getting younger. We're talking to millennials, X, Y, Z, and the seeds in terms of generation.”
In addition, the growth of wealth in this segment is “huge,” Amalfitano said, citing as an example that U.S. high-net-worth-individual wealth has grown 12 percent year-over-year. “It's the first time in five years that U.S. high-net-worth wealth has outpaced Asia-Pacific. And, obviously, we're seeing a lot of growth in terms of this segment today in private aviation in North America.”
People are moving “up through the [business aviation] access points” of cards, fractionals, and ownership. These new buyers have different expectations about private aviation and travel needs, he said.
“The priorities are shifting,” Amalfitano added, noting that with the pandemic the focus has been on health and safety and “fewer touchpoints, quick, point-to-point destinations. It's no longer about the airport experience. It's about how do I get to where I actually need to go and doing that in a safe, healthy, and comfortable manner.” In addition, he said, “their focus is on an enhanced lifestyle experience.”
The market was already trending toward connectivity, but that is accelerating given the new priorities. “We're very focused on digital solutions,” Amalfitano said. The market also expects to move toward sustainable solutions.
Along with that, attitudes have changed toward the aircraft. “It is no longer about looking at my plane. It's about what my plane can do in terms of connecting me from my work to my home office, and from my home office.” Passengers want to be connected as they travel with fewer touchpoints, he said.
Embraer has looked at digital solutions through multiple aspects from augmented reality to aid buyers in purchase decisions to airborne connectivity for safety with better access to information in the flight deck.
Amalfitano also stressed the “human aspect,” with attention towards fresh air and HEPA filters, as well as the comforts in the cabin that provide an “in-home” experience. Services are critical to ensure availability," he added.
Looking forward, the industry must consider all the aspects of enabling the demand for point-to-point transportation through the urban mobility market, including infrastructure, air traffic management, support, and the aircraft itself.
He also stressed the importance of moving toward sustainability. “You've got to walk the talk when it comes to sustainability; we're big advocates,” he said, pointing to the industry’s commitment to move toward net-zero emissions by 2050, along with Embraer’s own commitments. “It's a big part of where we're going and we need to continue to grow.”
