An analysis of the demand for business aircraft among the corporate sector in South Africa

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.