* Taxes, red tape seen hindering industry
* Appeal to government for help before annual show opens
* Sector seeks to rebuild after recession-sparked decline
By Robert Evans
GENEVA, May 20 Leaders of the
multibillion-dollar global business aviation industry see signs
of recovery from four years of recession, they said on Monday,
but they appealed to governments to ease the way ahead by
cutting taxes and red tape.
The call was issued by executives from Europe and North
America before the opening on Tuesday of the EBACE conference
and exhibition, a major annual showcase for plane builders,
equipment suppliers and service companies. The show will close
"The signs are encouraging," Ed Bolen, president and chief
executive officer of the North American Business Aviation
Association (NBAA), told reporters. "We are seeing progress in
all sectors, but it is very fragile."
Fabio Gamba, CEO of EBAA, the European industry group, said:
"The difficult environment has dragged on. Traffic has yet
to recover to comfortable levels, while an industry turnaround
is hampered by some government policy measures."
Business aviation covers non-scheduled operations by private
aircraft or fleets used to ferry corporate leaders and staff
around the globe, and the plane manufacturers and support
companies that provide them.
In the United States, the NBAA says, it contributes over
$150 billion to the economy every year and provides over 1.2
million high-wage jobs. The EBAA says the proportionate
contribution in Europe is similar.
The industry expanded with the surge in the global economy
and international trade during the decade before the financial
crisis of 2008-2009, but then experienced a steady fall in
aircraft sales, deliveries and flights.
HARSH TAXES AND REGULATIONS
To get the industry moving again, Gamba's EBAA says
"attempts to introduce unwarranted taxes" in Britain and Italy
have to be thwarted, costs of air-traffic management kept down,
and environmental measures made more fair.
Pete Bunce of the U.S.-based General Aviation Manufacturers
Association, known as GAMA, said the regulatory climate has to
improve, allowing plane builders, which include companies like
Boeing, Canada's Bombardier and Brazil's
Embraer, "to get their product to market quickly."
All three companies - along with France's Dassault Aviation
and Cessna, Bell Helicopter, GKN Aerospace and
Gulfstream - are among exhibitors displaying their aircraft at
the show, alongside Geneva airport.
Embraer has flown its brand-new midsize Legacy
500 jet to put it on public display for the first time.
At the start of the global economic slowdown, the industry
faced assertions that it catered to the wealthy elite and had
little relevance to the lives of ordinary people hit hard as
governments introduced tough austerity measures.
But its supporters - and outside analysts - say enabling
decision-making executives to travel quickly to conclude deals
is essential to restoring earlier levels of global trade and
investment and putting the recession behind them.
"Business aviation has generated substantial and sustainable
employment, and promises to be an important and unique
contributor to a wider economic recovery," a recent Oxford
Economics report said.
Industry officials also point to the potential for strong
growth in the larger emerging economies in Asia, Africa and
Latin America, as well as in China - which has already hosted an
Asian equivalent to EBACE - and Russia.
In its annual forecast for business aviation issued last
October, Honeywell Aerospace forecast good growth over the
coming decade, with a steady surge in aircraft deliveries as the
trend toward bigger plane models was consolidated.