An insight into Marine and Aviation trends in 2018
10 Jan 2018
‘I think this is an exciting time for Marine and Aviation and 2017 saw healthy demand for our services which we expect will continue into this year, as we to assist clients with their structuring needs’ says Andrew Wilson, ZEDRA’s Head of Marine and Aviation.
So what can we expect in 2018?
'What's clear is that interest in super yachts hasn’t faded, and those taking on new builds are willing to push the boundaries of size, technology and design’ says Andrew.
'At the very top end of the luxury yacht market, there used to be more emphasis on size - the challenge for designers and builders was always to go bigger, but I think owners wishing to build today are focusing more on the 'wow factor' of the boat's design. I expect to see more new-build luxury yachts break away from what we think of today as traditional designs in coming years.'
But what about the rest of the luxury yachting sector? Andrew notes: ‘We haven't seen client interest in yachts diminish, but I think the industry is seeing a continued shift away from owners wishing to take on the larger build projects, to making second hand purchases and then undertaking extensive re-fits to their tastes.’
Up in the air, 2018 looks be to a promising year for private aviation. 'Its an exciting time in the aviation industry with Cessna, Gulfstream and Bombardier all with new models in development, which underlines the industry's expectations for ever increasing passenger numbers and ownership.' says Andrew. 'The trend for the new models is undeniably distance - the industry is designing new planes that will take passengers further, faster, all with the same level of comfort that they've been used to.' The Bombardier Global 8000 particularly, has marketed itself on the ability to fly further than any other private or business jet, covering nearly 8,000 nautical miles nonstop - in other words the equivalent of a trip from Hong Kong to New York.
‘We’re increasingly seeing other factors in the mix when potential owners are thinking about purchasing a jet’, says Andrew ‘for example, business owners are increasingly required to be present to oversee commercial interests in sites that may be away from major transport hubs, with smaller, local airports accessible only to private jets. As this sort of travel increases of course hours in the air do too, and ownership of a jet may become more practical than continually chartering or trying to get the best value from Jet Cards.’
There are also new tourism trends affecting the market, with an emphasis on family or vacation time really about ‘getting away from it all’ either to very remote destinations, or again to airports not easily accessible via commercial airlines.
Potential owners however, are really thinking about safety in a way they haven’t before. ‘Security has also never been more prevalent, and I think in recent years this has been the biggest incentive we’ve seen for private jet ownership – Apple’s announcement at the end of 2017 that the Board had decided that the company’s CEO Tim Cook may no longer fly commercially for business or private trips underlines this trend, and in or out of the public eye, I think we will continue to see security as a prime consideration for ownership going forward.’
‘In a practical sense however, the message we’re getting from clients is that they are moving away from managing these type of assets in-house and want to work with trusted partners to handle the entire operation. We can easily put together a complete solution for a client wishing to buy an aircraft or yacht using our in-house team of administrators and network of external service providers and operators. The ZEDRA Group has 13 offices in strategic locations and time zones with professional administrators that set up and run companies that own these types of assets. For clients wishing to bring their yachts or aircraft into Europe, ZEDRA is accredited with Authorised Economic Operator (AEO) status which makes the importation into the EU smoother and quicker. The accreditation has a number of other features which clients can benefit from too, such as a VAT-free warehousing for aircraft and bank guarantee waivers for importations’ concludes Andrew.
Over the month of January, Andrew will be present at the London Boat Show, Corporate Jet Investor and Super Yacht Investor. If you wish to meet with him at any of the events to discuss industry trends or ZEDRA’s Marine and Aviation service offerings, please contact him via email: email@example.com