A prerequisite for an Investment Aircraft for Familyoffice is sustainably growing demand. Passenger air traffic will increase strongly worldwide, even if there is currently a lot of talk about “aviation shame”. It is still flown and many regions have a lot of catching up to do.
A doubling of the passenger number reality or fiction?
Passenger air traffic roughly doubles every 15 years, as all research agencies agree. Economic fluctuations and different regional growth rates do not change this. The discussion currently taking place in Europe about air pollution from air traffic is of no avail. The aviation pubic discussion, particularly in Europe, because of the climate impact “we do not see as a worry, but as an opportunity,” said Airbus sales manager Christian Scherer in London. As a result, there are no serious braking marks in demand. Rather, this offers Airbus the opportunity to profile itself as a “champion in innovation” in order to reduce global emissions in air traffic. Airlines would probably swap their older jets for new eco models faster. An important aspect for an Investment Aircraft for Familyoffice.
Climate neutral flying and Investment Aircraft for Familyoffice
Even if airlines and airport operators have to serve for the global human-induced climate change: The industry has long since set itself the goal of climate-neutral flying. The global fleet should fly CO2-free by 2050. This should also be possible with the use of regenerative fuels. The engines do not have to be converted and the existing infrastructure can be used. The technology is already there, German companies are far ahead of politics:
A new study by the Fraunhofer Institute examines Morocco as a location to produce synthetic fuel for export.
Huge production facilities are already under construction in the desert regions. Even with substantial Chinese funding.
Growth in economic regions
The major economic regions, such as Europe and North America, are experiencing constant, albeit somewhat slower, growth in air traffic.
Huge pent-up demand in emerging regions
More and more people are making more money. This is leading to more air traffic, especially in the emerging economies. Emerging nations like China cannot meet demand, even if construction is currently being carried out on 50 new airports. India is a market with over a billion people and huge pent-up demand. Airbus market expert Bob Lange expects air traffic in the Indian market to increase five-fold by 2038.
In regions like Indonesia with its more than 6,000 inhabited islands, the plane is the most efficient means of transportation. Africa is a sleeping giant that is slowly awakening. The need is huge.
The framework data cannot be better for an Investment Aircraft for Familyoffice
Even if the aircraft were increasingly avoided as a means of transport in Europe, the number of passengers worldwide would increase. The current worldwide passenger volume is around 4 billion, and by 2038 Airbus is expected to have up to 8 billion passengers a year. The airlines operate at or even beyond their capacity limits, which is also clearly visible in the practice of overbooking.
In the recently published long-term forecast, Airbus estimates that 39,210 new passenger and cargo planes are expected to be needed worldwide in the next 20 years. The vast majority of demand relates to smaller aircraft, i.e. regional air traffic. For aircraft with 100 to 150 seats alone, Airbus expects 7,000 units to be used during this period. An important aspect in terms of an Investment Aircraft for Familyoffice.
The annual growth rates in the individual regions from 2018 to 2038 that are expected by statista are remarkable:
China 6.2% p.a.
Middle East 6.2%
Latin America 6.0%
Asia Pacific 5.5%
North America 4.2%
Air traffic growth is expected to continue for generations to come.
Economic importance of air traffic
These figures also reflect the economic importance of aviation: global industry sales in 2019 are estimated at USD 885 billion. Airlines’ profits worldwide are estimated at $ 35.5 billion in 2019. The remaining airlines compensate for the losses of the losers. The aircraft of the airlines disappearing from the market is urgently needed by those who remain: the producers cannot meet the demand at all, Airbus slows down its deliveries in order to be able to deliver them at least on time. A change in the situation is not in sight: The development of a new aircraft type takes more than 15 years and easily devours USD 10 billion and more. Boeing has recently put the plans for the development of a new type on the file, because with the wave of costs on Boeing due to the accidents with the B 737 Max, this is no longer manageable even for such a huge company. This fact also keeps the growing competition of aircraft manufacturers from China and Russia at a distance for decades.
Effects on the labor markets
The effects on the labor markets are also huge: in the Airbus study, an additional demand of up to 550,000 pilots and 640,000 technicians is expected. Not to mention the jobs in the supply industry and the airports.
Top framework conditions for an investment aircraft for family offices.
The framework conditions for a Diversified Regional Aircraft Fund could not be better. Prime Invest is dealing intensively with this topic and is currently structuring a corresponding investment opportunity.
Experience and competence
Prime Invest has been investing in Investment Aircraft for about 20 years. The Aircraft Manger, which is targeted for the fund, has more than 130 successful transactions in excess of $ 30 billion. http://www.eastmerchant.de
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