The global business jet market forecast predicts
a promising future for high profile aviation in the years ahead. Customer is
driven by the value proposition provided by players in the global business jet
market. These are cost effective and a safe mode of travel. The ability to
conduct business privately during flights, on-demand flight scheduling, reduced
travel time and direct access to company sites are major benefits of these
aircrafts. Globalization of trade owing to expansion from interregional
partners to globally connected economies have contributed to the growth in
business jet markets. Emerging economies such as China and India in addition to
other developing nations are expected to propel the demand for business jets in
the foreseeable future on account of converging adoptions towards mature market
levels.

One of the key trends in
the upcoming market is the replacement of old generation business jets with new
aircraft models. The market is segmented
into two major segments that includes branded charters which includes air taxis
and second is fractional ownership. There has been substantial growth in
on-demand air travel and business jets associated with air taxi fleets and
charter. Increase in the ownership of business jets can be attributed to easy
financing facilities coupled with low interest rates.

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Segmentation Typology:

1.Geographic segmentation

Geographic segmentation divides markets according to geographic are
of the demand. In practice, markets can be segmented as broadly as continents
and as narrowly as postal codes. Typical geographic variables include:

·        
Countries e.g.
Brazil, Canada, China, France, Germany, India, Italy, Japan, UK, US

·        
Regional e.g.
North, North-west, Mid-west, South, Central, West, East

·        
Population Density: e.g.
Central business district (CBD), Urban, suburban, rural, regional

·        
City or town size: e.g.
under 1,000; 1,000–5,000; 5,000–10,000 … 1,000,000–3,000,000 and over
3,000,000

·        
Climatic zone: e.g.
Mediterranean, Temperate, Sub-Tropical, Tropical, Polar

2. Demographics

Breakdown by any combination: age, gender,
income, education, ethnicity, marital status, education, household (or
business), size, length of residence, type of residence or even profession/Occupation.

An example is Air France, who is trying to
target young generation through its new campaign

3.Psychographic segmentation

Psychographic segmentation, which is sometimes called
psychometric or lifestyle segmentation, is measured by
studying the activities, interests, and opinions (AIOs) of customers. It
considers how people spend their leisure, and which external influences they
are most responsive to and influenced by. Psychographics is a very widely used
basis for segmentation, because it enables marketers to identify tightly
defined market segments and better understand consumer motivations for product
or brand choices.

4.Behavioral
segmentation

This refers to ‘personality and emotions’ based
on behavior, linked to purchase choices, including attitudes, lifestyle,
hobbies, risk aversion, personality and leadership traits. Magazines read and
TV. While demographics explain ‘who’ your buyer is, psychographics inform
you ‘why’ your customer buys.

Behavioral segmentation divides consumers into
groups according to their observed behaviors. Typical behavioral variables
and their descriptors include

·       
Purchase/Usage Occasion:
e.g. regular occasion, special occasion, festive occasion, gift-giving

·       
Benefit-Sought: e.g.
economy, quality, service level, convenience, access

·       
User Status: e.g.
First-time user, Regular user, Non-user

·       
Usage Rate/Purchase Frequency:
e.g. Light user, heavy user, moderate user

·       
Loyalty Status: e.g.
Loyal, switcher, non-loyal, lapsed

·       
Buyer Readiness: e.g.
Unaware, aware, intention to buy

·       
Attitude to Product or
Service: e.g. Enthusiast, Indifferent, Hostile; Price Conscious, Quality
Conscious

·       
Adopter Status: e.g.
Early adopter, late adopter, laggard

 

The market research
analysis categorizes the global light business jet market into the following
types of aircraft:

·        
Light business jet

·        
Super light business jet

·        
Very light business jet

 

Global light business jet market for light jets

The global light
business jet market for light jets accounted for more than 53% of the total
market share in 2016. The light business jets are witnessing a growing demand
from corporate travelers and businessmen due to the increase in international
trade activities. In addition, the use of light jets with improved range and
better comfort is propelling the light business jet market in terms of revenue
generated from their sales. The vendors are adding modern features that include
Garmin GWX-70 Doppler radar system with turbulence alert capability and are
increasing the legroom space adds to its overall enhanced level of comfort. The
incorporation of facilities, such as high definition Blu-Ray DVD player, XM
radio, and other features will boost the sales in this segment.

According to Ramyabrata Chakraborty, a lead
analyst for aviation research, “LEARJET 70, which is a light
business jet manufactured by Bombardier Aerospace, has new avionics, powerful
and efficient engines, and winglets. These aircrafts are designed to
accommodate six passengers and two crew members. Some of the other features include
larger baggage compartment, LED lighting, and more galley space.”

Global light business jet market for super light jets

In 2016, the global
light business jet market for super light jets occupied close to 27% of the
total market share. Super light jets are preferred over light jets because of
their extended range, and they are larger compared to light jets. This type of
aircraft can usually carry 8-9 passengers comfortably, depending upon the
seating layout. They have spacious cabins and large baggage compartments.

“Learjet 75 is a super light jet manufactured by
the Learjet division of Bombardier Aerospace, and it received its type
certificate in November 2013 from FAA. It has a capacity for 8-9 passengers
with two crew members. Learjet 75 is powered by twin-engine from Honeywell and
has a maximum cruise speed of about 465 knots,” says Ramyabrata.

Global light business jet market for very light jets

The global light
business jet market for very light jets accounted for around 20% of the total
market share in 2016. VLJs are developed as cost-effective entry-level jets and
are ideal for short flights of up to two hours. They are also suitable for
transporting a small group of people that usually ranges from 4 to 6
passengers. These jets can fly for a maximum duration of three hours or an
average of fewer than 1,800 miles. They can take-off from short runways and can
make use of smaller private airports.

The top aircraft
manufacturer’s producing business jets, highlighted by market research analysts
are:

·        
Bombardier (Canada)

·        
Embraer (Brazil)

·        
Textron Aviation (U.S)

·        
Dassault Aviation (France)

·        
Gulfstream Aerospace Corporation (U.S)

 

 

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