Perception vs Reality The Economic Contribution of Business Aviation Brian Humphries CBEIBAC/ICAO Dinner EBAA President and CEOMontréal 28 May 2009

Why Europe as the model? Faces all BusAv's Global Challenges in respect of access; proportionate and appropriate regulation; and public image Clear focus on safety Global BusAv in a microcosm Recently conducted study by PriceWaterhouseCoopers provides authoritative economic impact assessment of BusAv on the European economy by a leading and well respected consultancy Europe represents 11% of global business aviation operations so when European economic impact is factored into the global economy, gross value added is substantial.

Take 4 Perspectives The False – some Press and Officials The True o European Parliament and Commission o The Economist o The Air Traffic Service provider

The False BusAv is for fat cats o Actually in Europe 80% of usage is by Corporations and governments and <3% by high net worths BusAv is an unnecessary luxury o Actually the industry is a major wealth and jobs creator BusAv competes with the airlines to benefit the few over the many o Actually BusAv serves predominantly those city pairs poorly or not served at all by the airlines

Value to the Business European Commission Perspective “General and Business Aviation provides closely tailored, flexible, door to door transportation for individuals, enterprises and local communities, increasing mobility of people, productivity of businesses and regional cohesion.” Communication from the Commission An Agenda for Sustainable Future in General and Business Aviation 11 January 2008 COM (2007) 869 Final

Value to the Business European Parliament Perspective “General and Business Aviation complement regular air transport by commercial airlines and this provides specific social and economic benefits such as increasing the mobility of citizens, the productivity of businesses and regional cohesion. ………..is of growing economic importance.” European Parliament resolution of 3 February 2009 on an Agenda for Sustainable Future in General and Business Aviation 2008/2134(INI)l

Business Aviation: Piloting the European Economy

The Business Aviation sector contributed a total of €19.7bn in annual gross value added (GVA) to the European economy in 2007, accounting for approximately 0.2% of the combined GDP of the European Union (EU), Norway and Switzerland

Business Aviation accounted for more than 164k jobs across the continent and generated combined annual wages and salaries of around €5.7bn.

Total impact of Business Aviation in France, UK & Germany is €12.6bn, which represents 64% of the total industry GVA in Europe.

Safety and Security Top priorities for business aviation IBAC leads the development of best practices for global application o IS-BAO - Corporate operations have one of the best safety records in the industry o New Safety Road Map setting the course for continuous improvement o SMS toolkit now available to support operators in meeting ICAO requirements o Security guidelines tailored to the specifics of BusAv

BusAv and the Environment Europe has one of the youngest fleets in the world Fly to task not schedules Almost 8% of IFR traffic but less than 1% of emissions Full and active participant in Single European Sky ATM Research programme(SESAR) for long-term reduction in CO 2 Do not sell seats so tonne-kilometre not an appropriate PI o Value added rather than people carried vs. environmental impact = sustainability Prepared to FULLY offset emissions BUT o Need proportionate Monitoring Reporting and Verification (MRV) rules

Business Aviation declined 3% in 2008

Flying where scheduled does not Most of the traffic, most of the city-pairs

Everything but routine

From the Economic Heart

Recent Growth & Outlook A 15% decline would take us back to 2005 levels.

Conclusion BusAv is a vital tool not a luxury BusAv is an additional travel option not in competition with the airlines and predominantly serves city pairs least well served by the airlines BusAv is an economic enabler for national and regional economies BusAv creates Value, Jobs and Wages on a scale comparable with other major industries such as the telecom manufacturing industry BusAv is sustainable and at the very heart of economic activity BusAv needs fair and equitable access to airspace and airports BusAv is the Right Tool for Challenging Times