A recent study commissioned by Airbus Corporate Jets (ACJ) reveals that 96% of U.S. corporations owning or leasing business aircraft plan to upgrade to newer or more advanced models within the next five years.
This trend signals a growing reliance on business aviation, driven by evolving corporate needs, new tax incentives, and a focus on efficiency and sustainability.
Why Corporations Are Upgrading
The study identifies several key reasons behind this push for fleet upgrades. The top driver, cited by 67% of surveyed companies, is new U.S. tax legislation.
This allows businesses to deduct 100% of the purchase price of corporate jets used for business travel. This tax break makes upgrading financially attractive. Other significant factors include:
Operational cost management (63%): Companies aim to reduce long-term expenses through more efficient aircraft.
Newer, fuel-efficient models (59%): Recent advancements in aviation technology are prompting upgrades.
Sustainable fuel compatibility (51%): Corporations are prioritizing aircraft that can use sustainable aviation fuel (SAF) to align with environmental goals.
Increased executive usage (41%): More company leaders are relying on business jets for travel.
Greater range requirements (25%): Longer-range aircraft are in demand for expanded global operations.
Residual value considerations (29%): Companies are factoring in the resale value of their fleets.
Rising Demand for Business Aviation
The study also highlights a significant increase in corporate aviation usage. Over the next two years, 91% of respondents expect their reliance on business aircraft to grow, with 39% anticipating a substantial rise.
Looking five years ahead, 90% predict further increases, with 45% expecting dramatic growth. Key reasons for this trend include:
- Favorable tax environment: The current U.S. tax incentives make business aviation more accessible.
- Flexibility: Corporate jets offer scheduling freedom compared to commercial airlines.
- Enhanced security: Private aviation provides a safer, more controlled travel experience.
Chadi Saade, President of Airbus Corporate Jets, commented: “This study reflects the market’s shift toward greater use of business aviation. U.S. corporations are investing in larger, more advanced aircraft to meet demands for comfort, range, and sustainability.”
“At ACJ, we’re proud to lead this transformation with innovative aircraft like the ACJ TwoTwenty, designed for corporate America’s evolving needs.”
A Shift Toward Larger, Corporate-Owned Jets
The study points to a notable trend: 88% of respondents expect more large U.S. companies to invest in their own jets for employee shuttle services over the next five years.
Corporations value comfort, advanced technology, and connectivity, with spacious cabins ranked as the top benefit of business aviation.
The ACJ TwoTwenty: A Game-Changer
ACJ’s flagship aircraft, the ACJ TwoTwenty, is redefining the business jet market as an “Xtra Large Bizjet.”
It offers twice the cabin space of similarly priced ultra-long-range (ULR) jets while maintaining comparable parking requirements and airport compatibility.
With operating costs up to one-third lower than competitors, the ACJ TwoTwenty combines market-leading fuel efficiency with unmatched reliability.
Boasting a range of up to 5,650 nautical miles (over 12 flight hours), the ACJ TwoTwenty can connect major city pairs like Los Angeles to London, Miami to Buenos Aires, and New York to São Paulo, covering 99.9% of U.S. departure routes.
Like all ACJ aircraft, it supports up to a 50% blend of sustainable aviation fuel (SAF), aligning with Airbus’ goal for all its aircraft to operate on 100% SAF by 2030. This capability supports the aviation industry’s decarbonization efforts.
Conclusion
As U.S. corporations increasingly rely on business aviation, the demand for larger, more efficient, and sustainable aircraft is clear.
With its innovative design and cost-saving features, the ACJ TwoTwenty is positioning to meet these needs, offering a compelling solution for companies seeking to modernize their fleets.
