A new study commissioned by Airbus Corporate Jets (ACJ) has found that 96% of US corporations who own or lease corporate aircraft anticipate upgrading to new or better models in the next five years.
The independent survey was of 100 senior executives at large US corporations with an annual revenue of more than US$500 million, 90% of whom said their organisation uses business aviation.
When asked why their company was looking to upgrade its business aircraft fleet, the leading driver – cited by two-thirds (67%) of those surveyed – was the new US tax legislation that allows businesses to write off 100% of the purchase prices of a corporate jet used for business travel. The legislation in question is the federal budget bill, titled the One Big Beautiful Bill Act (H.R.1).
Other significant motivations expressed by respondents included managing operational costs (63%), the arrival of newer and more fuel-efficient models (59%), and the ability to use more sustainable fuels (51%). The need for larger aircraft was also evident, with 41% citing an increase in executive usage and 25% identifying demand for greater flight range.
| Reasons U.S. corporations are looking to upgrade their business aircraft | Percentage of U.S. corporations surveyed who gave this as a reason to upgrade their business aircraft |
| New tax legislation in the U.S. | 67% |
| Growing focus on operational costs | 63% |
| Newer/better/more fuel-efficient models have recently been launched | 59% |
| Upgrade to models that can make greater use of sustainable fuel | 51% |
| Need for bigger aircraft as more company executives will be using them | 41% |
| Residual value considerations | 29% |
| Need for bigger aircraft that have greater range | 25% |
The study found that corporate reliance on business aviation is set to increase. 91% of those surveyed expect that their use of business aviation will increase over the next two years, with 39% saying they anticipate a ‘dramatic increase’.
Looking further ahead, 90% of those surveyed forecast greater use of business aviation within five years, with almost half (45%) predicting ‘dramatic growth’. The top reasons for this growth included the current favourable tax environment in the USA, increased flexibility compared to scheduled airlines, and greater security.
Chadi Saade, president of Airbus Corporate Jets, said: “This study confirms what we are seeing in the market: US corporations are not only using business aviation more frequently, they are also looking to upgrade to larger, more capable aircraft. The combination of incentives, new and more efficient models, and the value companies place on comfort, range and sustainability all point to strong demand in the years ahead.”
The study also points to a shift in how corporations deploy their fleets. Nearly nine in 10 (88%) respondents expect to see more large US companies investing in their own large jets to operate employee shuttle services over the next five years. Comfort, technology and connectivity are seen as the key benefits of travelling via corporate aircraft, with cabin space rated number one.
