Avionics News October 2016 - 25

Contribution of General Aviation to the US Economy in 2013
Figure 5. -General Aviation Flight Hours by Type of Aircraft and Reason for Use, 2013
100%
12%
19%
90%

"Over the past five years, we have seen a softening in forward-fit sales," said Paul DeHerrara, CEO
70%
61%
of Universal Avionics Systems Corp. A soft economy
1%
60%
is a leading factor, "but the demonization of business
7%
aviation by the current political environment" has
76%
11%
50%
contributed to the slowdown. However, Universal
40%
73%
42%
"expects forward-fit sales will improve over the next
64%
30%
five years, driven by a gradually improving economy,
45%
35%
20%
which will foster business aircraft sales in the latter
7%
10%
4%
of the five-year time horizon. As the economy heats
8%
8%
2%
3%
up, anti-business jet rhetoric will wane, as increased
0%
Piston
Turboprop
Jet-powered Helicopters Experimental
Other
business needs will drive more jet travel to meet
airplanes
airplanes
airplanes
demands for many business enterprises."
Personal
Business without paid crew
Business with paid crew
Other
The AEA's Avionics Market Report echoes
Source: FAA, General Aviation and Part 135 Activity Survey, 2013 (December 2014).
*Includes aircraft used for business travel with or without a paid crew. **Includes flight instruction and all
DeHerrera's forward-fit sales observations. The
other purposes.
inaugural reports in 2013 set a robust baseline for
forward-fit sales for installation in new aircraft, and
There are over 4,000 paved airports in the United States that service general aviation flights, compared to
Injust
theoversame
order,
turboprops
it was air
42transportation.
percent for
550 airports
thatfor
service
scheduled commercial
When other types of landing
retrofit sales that upgrade the existing fleet. Of the
facilities, such as heliports, seaplane bases, and other facilities, are included, there are more than 19,000
business
with a paid crew, 7 percent without, and 8 percent
landing facilities in the United States that service general aviation aircraft.
two, forward-fit is the majority sales leader, and the first quarter of
personal. For piston airplanes it was 7 percent with a paid
2016 showed a significant change in its trend, down just 0.1 perD. General
Aviation
Expenditures
crew,
11 percent
without Traveler
and 45 percent
personal. Helicopcent
from the same period of the year before. Retrofit sales were
It is estimated that 166 million passengers travel on general aviation flights each year in the US.
These
passengers
purchase
goods andof
services
destination
For example,
a business
on a
ters
logged
35 percent
theirin the
time
with acities.
business
crew,
2 traveler
down
7.5 percent in the first quarter of this year.
business aircraft may incur expenses for a hotel room, local meals, and even souvenirs. These travel
percent
without,
3 percent
personal,
and
61 percent
as by
other.
expenditures
provide additional
economic
benefits to
the communities
served
general aviation.DeHerrera predicted that "retrofit sales will increase exponenFor
experimental aircraft, it was 5 percent with a crew, 3
tially
PwC estimates that overnight passengers on general aviation aircraft spent $1.9 billion on meals
and in
$3.6the early part of the next five years." This growth will be
billion onwithout,
lodging in 2013
2, below).
These estimates do not include spending by general
percent
and(see73Table
percent
personal.
"driven
primarily by mandates such as ADS-B (January 2020)
17
aviation travelers on souvenirs, snacks, and other miscellaneous items.
The report shows an interesting correlation between the
and the 'Best Equipped, Best Served' position the FAA and EASA
business mission percentage and the percentage of sales of
(European Aviation Safety Agency) have taken toward aircraft
new U.S.-manufactured general aviation airplanes in 2013,
operations." This is especially true for those who fly to Europe.
17 For a complete description of the methodology used to estimate travel spending see Appendix B.
derived
from data from GAMA, Sikorsky and Dun & Brad"Those customers not embracing the latest gear for flying the
street. Jets accounted for 72.8 percent8 of sales, followed
North Atlantic will feel the pinch by not being afforded the most
by helicopters at 12.3 percent, turboprops at 10.7 percent,
optimal routing."
piston
aircraft
at
3.6,
and
experimental
at
0.6
percent.
But this growth is not without consequences, DeHerrera added.
Contribution of General Aviation to the US Economy in 2013
"Mandates required to meet ADS-B will force many
flight departments to 'spend out' their budgets, which
Figure 2. - Sales of New US-Manufactured General Aviation Aircraft, 2013
Total Sales of New Aircraft in 2013 = $12.7 Billion
would result in a softening of purchases post manPiston-Powered
Experimental
date.
We expect some flight departments to go on
Airplanes
0.6% ($0.1B )
Turboprop
($0.5B)
hiatus
for new avionics purchases due to the cost of
Airplanes
($1.4B)
3.6%
meeting the mandates. In contrast, advancements in
technology will drive new demands in the market10.7%
place beyond 2020."
Helicopters
Regardless of what or where they fly, owners will
($1.6B)
factor their percentage of business use when looking
12.3%
at ADS-B. In simple terms, the greater the percentage, the easier the decision: upgrade or buy a new
airplane. The lower the percentage, the options are
72.8%
more vexing: upgrade or retire. This is surely a factor
in the minor role new piston airplanes play in new
Jet-Powered
sales as well as the steady decline of the U.S. fleet. It
Airplanes
($9.3B)
experienced growth, to 204,408 aircraft, in 2014, but
it is well below 2007's pinnacle of 231,607 piston
80%

37%

43%

5%
3%

35%

Source: PwC estimates based GAMA (2013 Year End General Aviation Aircraft Shipment Report) and data from
Sikorsky and Dun & Bradstreet. Detail may not add up to the total due to rounding.

In addition to the manufacture of new aircraft, US manufacturers also produce a variety of parts and
components for use in the manufacture, repair, and upkeep of general aviation aircraft around the world,
including aircraft engines and engine components, aircraft assemblies and subassemblies, aircraft parts
(such as propellers, wheels, tires, brakes, aircraft interiors, and lighting), and avionics and other electrical

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avionics news

october

2016

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