Economic Impact: Business Aviation Operations & Business Aircraft Manufacturing in Canada Annual CBAA Conference

Transcription

1 Economic Impact: Business Aviation Operations & Business Aircraft Manufacturing in Canada 2016 Annual CBAA Conference

2 Transportation of service and specialist employees and cargo, NOT merely executives, to: Business Aviation: Why? Improved productivity Improved customer service and retention Enhance supply chain performance Safety and security of employees Transportation of cargo, parts and mail Photo Credit: Sam Churchill 2

3 The Substantive Economic Impact Business Aviation Operations and Manufacturing as a sector of the Canadian economy generates $5.1 billion in total GDP But the substantive impact is in improving productivity and value creation in other sectors we call this the catalytic impact of business aviation 3

4 Catalytic Impacts 4 Role of air transport in facilitating effective business in other sectors Impacts may include: Trade competitiveness Business productivity improvements Enhanced supply chain performance Sustainable small communities/regional economies Cost reduction

5 Business Aviation Means Greater Corporate and National Productivity Business aviation Reduces costs for businesses Increases productivity of managers, technicians, trainers, etc. Dramatically increases customer service and customer contact Business aviation enables large time savings over commercial aviation for multi-stop itineraries. 5

6 1 Business Aviation by the Numbers Photo Credit: Bombardier

7 7 Business Aircraft Globally and in Canada

8 Movements (Thousands) Business Aviation Movements in Canada Source: NAV Canada data provided by CBAA. Data is for the 12 months from June to May for each time period.

9 Industry Deliveries (units) Business Aviation Aircraft Deliveries Globally Large Category Light & Medium Category 1, Source: GAMA.

10 Bombardier s 10-Year Forecast of Business Aircraft Deliveries Globally Source: Bombardier Market Forecast, , p.21.

11 2 Economic Impact of Business Aviation Operations & Business Aircraft Manufacturing Photo Credit: Bombardier

12 Distribution of Direct Employment 11,500 Person Years for business aviation operations 10,800 Person Years for business aircraft manufacturing

13 Direct Impact of Business Aviation Operations and Business Aircraft Manufacturing in Canada

14 Total Impact of Business Aviation Operations and Business Aircraft Manufacturing in Canada Type of Impact Employment (Person Years) Wages ($billions) GDP ($billions) Economic Output ($billions) Direct 22,300 $1.8 $2.9 $6.8 Indirect 12,800 $0.8 $1.3 $2.4 Induced 8,100 $0.4 $0.9 $1.5 Total 43,200 $3.1 $5.1 $10.7 Note: Figures may not sum, due to rounding. Source: InterVISTAS analysis using multipliers and ratios from Statistics Canada Interprovincial Input-Output Model. 14

15 15 Taxation Impact of Business Aviation Operations and Business Aircraft Manufacturing in Canada

16 3 Economic Impact of Business Aviation Operations Photo Credit: Bombardier

17 Direct Employee Impact: All Flights in Canada = 17

18 Business Aviation Aircraft per Annum 6.1 Person Years of direct employment are generated per business aviation aircraft per annum Direct employment related to business aviation in Canada approximately amount to 11,500 Person Years or Full Time Equivalents. 18 These employees earn approximately $810 million in wages, yielding an average of $70,400 per person year of employment.

19 Direct Impact of 1 Business Aviation Aircraft per Annum 19

20 Wage Impact of Business Aviation Operations in Canada 20

21 21 Employee Impact: All Flights in Canada

22 Total Impact of 1 Business Aviation Aircraft per Annum 22

23 23 Direct Value Impact of Business Aviation Operations

24 24 Taxation Impact of Business Aviation Operations in Canada

25 4 Economic Impact of Business Aircraft Manufacturing Photo Credit: Bombardier

26 26 Employee Impact: Business Aircraft Manufacturing in Canada

27 27 Wage Impact of Business Aircraft Manufacturing in Canada

28 28 Wage Impact of Business Aircraft Manufacturing in Canada

29 Direct Value Impact of Business Aircraft Manufacturing 29

30 Total Value Impact of Business Aircraft Manufacturing in Canada 30

31 31 Taxation Impact of Business Aircraft Manufacturing in Canada

32 5 Case Studies Photo Credit: Bombardier

33 Kelly Panteluk Construction Building the Company through the Help of Business Aviation Kelly Panteluk Construction Ltd., is one of the largest privately owned businesses providing heavy equipment earth moving and underground services in Saskatchewan Enables business development from Estevan, SK, where no commercial services exists it would be impossible to build the company to the size that it is today without business aviation. 33

34 Aviation CMP Promoting Business Efficiencies 18 member companies based in Canada working in a cross-section of industries The co-operative allows members to save money and time to concentrate on the running of their core businesses According to Jean Langevin, General Manager of Aviation CMP, it is not about luxury, it is efficiency. 34

35 Aurora Jet Partners Sharing costs and benefits of business jets A fractional air operator, jet management company and charter operator since the early 1970s Currently operates a fleet of 14 business jets Provides clients with flexible arrangements for their specific travel needs 46 pilots facilitate business and leisure travel needs for clients 35

36 Bombardier Business Aircraft Supplying corporations worldwide with tools to achieve growth and improve productivity Industry leader in new business jet deliveries Photo Credit: Bombardier $7billion in revenues in 2015 Account for over 25% (4,300 aircraft) of the global business jet fleet of +16,000 aircraft Photo Credit: Bombardier 36

37 Pratt & Whitney Engines Global leader in business aviation P&WC works with over 1,300 Canadian suppliers to produce its products Over 36 models and 14,400 engines currently in service $450 million annual R&D investments over past decade Photo Credit: P&WC 37

38 Providing the tools and training for safe and efficient aviation flights CAE 8,000 employees globally, with training operations in 35 countries, at 160 sites Photo Credit: CAE Trains over 12,000 civil, defense and health care professionals annually $1.3 billion in R&D investments in past decade 38 Photo Credit: CAE

39 Thank you.