Abstract
Background: Business aircraft fulfil a major need in providing access and mobility solutions not generally offered by scheduled commercial aircraft. These aircraft often make use of secondary airports in outlying areas thus encouraging economic development. Business aviation is, in general, growing throughout the world and also in some African countries, but appears to be subdued in South Africa. The purpose of this research project was to determine the demand characteristics for business aviation aircraft in South Africa.Objectives: The primary research objective was to determine the demand for business aircraft in South Africa, as well as the nature and characteristics of the users and non-users of business aircraft among the top 100 companies listed on the Johannesburg Stock Exchange (JSE).Method: A pragmatic research philosophy guided an exploratory sequential mixed methods research design. Findings from face-to-face interviews with aviation experts were utilised to develop the research questionnaire distributed to the top 100 JSE-listed companies.Results: The potential future growth for the business aircraft market is most likely to come from existing users, with marginal growth from new entrants in the market. Perceived costs are major deterrents to the utilisation of business aircraft.Conclusion: The research provides market intelligence necessary to guide business aviation companies to efficiently service or expand the market for business aircraft in South Africa, contributing to the existing knowledge in air transport.
Highlights
The business aircraft market caters for companies and institutions of various sizes that utilise a range of aircraft over varying distances for services ranging from humanitarian relief to business air travel and tourism
The results indicate that growth in the market for business aircraft is likely to come from existing users
Strategy 1 – Cost-benefit analysis case studies: Business aircraft companies are encouraged to develop cost-benefit analysis (CBA) models based on case studies of current users in order to attract non-users
Summary
The business aircraft market caters for companies and institutions of various sizes that utilise a range of aircraft over varying distances for services ranging from humanitarian relief to business air travel and tourism. Since the early 1990s, the global business aviation market recorded a healthy growth rate, consisting of a fleet of 6056 business aircraft by 2016 (GAMA 2016:40). A 2009 Standard and Poor (S&P) study of 500 companies found that financial performance in organisations is positively influenced using business aircraft (NEXA 2009:3). Business aircraft fulfil a major need in providing access and mobility solutions not generally offered by scheduled commercial aircraft. These aircraft often make use of secondary airports in outlying areas encouraging economic development.
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