International University of Applied Sciences Bad Honnef Bonn

International University of Applied Sciences Bad Honnef - Bonn An Analysis of General Aviation in Europe Dr. Michael Erb Managing Director AOPA-Germany

An Analysis of General Aviation in Europe 1. – – – 2. – – – General Aviation (GA) in Europe Definition Statistics Who is AOPA? GA´s Economic and Social Benefits Economy – Business Travel Ecology Infrastructure Technology Transfer Security 3. GA´s Perspectives 4. 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 nonscheduled 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? “ 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 800 km/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

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 kmdistance 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: Average of “Opportunity Costs“ 250 €/h/pax, 250 h x 1. 943 €/h = € 485. 000 total, GA´s cost-disadvantage: € 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: Example of the “Gewerbesteuer“-leverage of 450% vs. 350% Costs for GA: 800 flight-hrs with € 1. 000/h in addition to other travel expenses

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. 400 m 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, Fo. F , 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 DA 40 TDI consumes only 2, 5 l / 100 Pkm, less than a modern Boeing 747 -400 with 3, 7 l - A “classic“ Socata TB 20 consumes 4, 2 l /100 PKM

GA Security, is there a threat? W = ½ mc², so 1. 200 Cessna 172 s are needed to create the kinetic energy of a single Boeing 767 like at 9/11

An International Comparison • GA revenues in the USA: 100 bn. USD p. a. = 250 EUR per Citizen, Trend: Rising • and in Germany: 980 mio. EUR p. a. = 12 EUR per Citizen, only 4, 8% of USA, Trend: Falling, except Business Sector Why?

Area: • Europe = 7% bigger Citizens: • Europe = 70% more GDP: • Per Citizen almost identical

GA density in Aircraft / 1 Mio. Citizens 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 Flight Schools Airfields Air Taxi Police + Border Patrol Corporate Aviation Total: 3. 070 900 1. 050 1. 250 600 ~1. 000 ~7. 200

Thank you very much for your audience!