Pictures

Private aviation has really taken off since 2001. Whereas it was once looked upon as an eccentric hobby, it is now considered a very useful service for companies. In Spain, the industry is still in its infancy, but it is expected to grow in leaps and bounds. To learn more about the private aviation sector, the Marketing Club hosted a lecture by Jacint Puigmartí, Sales Director of CorporateJets XXI.

'More than private aviation', said Mr. Puigmartí, 'we should be talking about business aviation. This is a means of transporting businesspeople'. He then explained the difference between corporate and commercial aircraft: the former is owned by a particular company and is used to transport executives, and the latter is hired for specific services. There are 2,000 aeroplanes in Europe, of which 120 are in Spain. These figures are projected to grow by 5% annually, but are not expected to approach the current US figure of 15,000 aircraft.

'Business aviation in Europe has grown 20% from 2001 to 2005', said Mr. Puigmartí. 'That's twice as much as growth for commercial flights during the same period'. Within Spain, Barcelona has shown the greatest increase in business flights, yet still accounts for just 6% of Europe's overall business aviation.

'The perception of this type of aviation is changing', noted Mr. Puigmartí. 'It used to be seen as an indulgence of sheikhs and movie stars.' He cited 11th September 2001 as the beginning of this shift in perception. The strict security measures adopted in the wake of the terrorist attacks began to inconvenience many passengers.

According to Mr. Puigmartí, dynamism and flexibility are the main appeals of this type of aviation: 'The customer decides when to leave and where to go'. He also listed several other benefits: discretion, safety ('on a regular flight, you never know what might happen'), confidentiality ('executives can feel at ease discussing confidential business matters'), and the comfort of knowing where your luggage is at all times. 'We are faster than commercial flights', he added. 'Our planes have a good power-to-weight ratio', as well as better on-time arrival statistics than conventional airlines.

Mr. Puigmartí then turned his attention specifically to Barcelona's El Prat Airport: 'The current situation is pitiful, but things should improve greatly once the new terminal opens early next year and other enlargement projects are carried out in the near future'. These infrastructure improvements, including the construction of new maintenance facilities, will allow more private aviation flights to use the airport.

On a more general note, Mr. Puigmartí analysed the various business models in the sector. 'New-generation aircraft will allow us to offer less expensive flights', he said, while acknowledging that these planes had been designed with an American mentality: 'Comfort is sacrificed, since many American executives fly the planes themselves'. He also explored the lines of business allowed by time-sharing agreements. In Europe, 120 aeroplanes are owned under such arrangements. They are managed by companies that make sure all customers have a plane available when they need it.

He then discussed the classic model, in which a company owns or leases an aeroplane: 'The owner may decide to hire management or maintenance services through a company like CorporateJets XXI'. He added: 'Flying privately means following very strict laws'.

Mr. Puigmartí then discussed pilot training. He made it clear that corporate pilots 'have the same qualifications, meet the same requirements and receive the same training as airline pilots'.

Toward the end of his remarks, Mr. Puigmartí described his company, CorporateJets XXI: 'Depending on the model, we can offer a medium-range or transoceanic radius of action, and we offer all the services I described earlier'. He added: 'Twenty percent of our clientele is Spanish and the other 80% is from other European countries, but we want these figures to be the other way around'. In conclusion, he once again highlighted the confidentiality and comfort offered by business aviation services, and called for the sector to emphasise 'gradual growth and high-quality service'.



Programme

Business aviation is booming as a result of worldwide growth, the dynamism of major emerging markets and the definitive expansion of the sector in Europe.

The use of private jets has become increasingly common in the most dynamic companies, which place a high value on their executives' time. Business aviation is no longer just an Asian luxury; it's a tool. New formulas have emerged, such as time-sharing, 'air taxis' hired for occasional use and private jet owners who rent their airplanes to companies. Services of this type have been used as a marketing tool aimed at both customers and suppliers, since private jets have a strategic, image-related value that may set a company apart from the competition.

Some companies have identified the potential of this business and are investing in it. At this session, organised by the Marketing Club, we will hear from corporatejets XXI, a private-aviation company that is highly familiar with the sector and its growth prospects.

Welcome and Moderator:
Pere Vallverdú, member of the ESADE Alumni Marketing Club.

The Experience of a Private-Aviation Company in the Spanish Market:
The Case of corporatejets XXI

Presentation:
Jacint Puigmartí, Commercial Manager of corporatejets XXI

Reflections on private aviation:
Lluís Martínez-Ribes, Associate Professor in the Department of Marketing Management at ESADE

Discussion:
Question and answer session.

Networking time.


After the session, participants are invited to stay and enjoy a cocktail.

Date, time and venue: 
Thursday, 21th June 2007
7.30 pm
ESADE Building 1 - ESADEFORUM
Av. Pedralbes, 60-62
Barcelona

For more information:
ESADE Alumni
Tel. 902 420 020

Sponsored by: