Market Analysis

LSA Market

  • Because of the lack of information which permits a market analysis specifically focused on VLA’s, it is analyzed the market of the LSA (Light Sport Aircraft). In fact, both types of aircraft, VLA and LSA, are almost the same. The technical features vary little from one to another and in some cases an aircraft belongs to both classification types.

    According to LAMA Europe (Light Aircraft Manufacturers Association Europe), the European light aviation industry employed in 2010 around 5000 people worldwide and had an annual production of around 1600 aircrafts, leading to an approximate annual turnover of 170 milions According to LAMA Europe (Light Aircraft Manufacturers Association Europe), the European light aviation industry employed in 2010 around 5000 people worldwide and had an annual production of around 1600 aircrafts, leading to an approximate annual turnover of 170 milions €..
    Most of the manufacturers are private and employ up to 25 people. Main players are currently employed some 50 – 350 workers and had yearly turnovers of 3,5 milions € to 20 milions €.
    In the table below there are shown the number of manufacturers, types and produced Ultra light and sport light aircrafts in the past, giving an idea of the size of the European market.

In the same study, it is also said that the number of commercial flights could double from 2010 to 2030:

The separation of the number of manufacturers by country and year is shown next.

As one can see, the most powerful European countries in this sector are Czech Republic, France, Germany and Italy, which lead the European market and have around the 65% of the light aircraft manufacturers. Spain has a rather poor position in comparison with the rest. Such position has been caused by the decrease in manufacturers.
Regarding the US market, and having in mind that the LSA rules are effective since April 2005, as of 1st April 2011 there were 88 types of aircraft certified as Light Aircraft. From those 88 types, 49 have European origin (56%). This aircrafts were made by 64 different companies, from which 35 are European (55%). When talking about the total number of light aircrafts registered as of April 2011, the number is 2031. From those, 1284 (63%) were manufactured in Europe.
The previous numbers make understandable the importance that the US market has for Europe, and that European aircrafts should meet also the north American legislation in order to make the planes certifiable.
In the last years the economic crisis has caused a decrease in the sales of light aircrafts. However, the current outlook of the flight schools is not as pessimistic as it might seem.
According to the official press release published by ICAO in March 2011, the demand for qualified aviation personnel for the next few years is growing. In the same study, it is also said that the number of commercial flights could double from 2010 to 2030:

Also, the fact that main aircraft manufacturers such as Boeing and Airbus put in orders for commercial aircraft corroborates that there is a growing need for commercial pilots.
Moreover, some interesting conclusions can be extracted from a study carried out by BOEING, entitled “Current Market Outlook 2012-2031”. These conclusions on this study can be found in the Ranking Garofali, developed by Álvaro Garofali in  September 2012. These conclusions are the followings:

a) Over the next twenty years it is estimated that it will be necessary to incorporate 34000 new aircraft, distributed by regions in the following way:

b)The demand for new pilots until year 2031 is estimated at 460000, distributed by regions in the following way:

As it can be observed, Europe is the second region, after Asia, that most will need new pilots in the following years, and therefore more flight schools.

In accordance with the previous results, it seems logical that there is market for a aircraft such as the one of project VLADIMIR, specially designed for flight training.

Furthermore, the flight training business has a particular good outlook in Spain. Álvaro Garofali, expert in aeronautical logistics, carried out a study on European commercial pilot schools. In this study he analyzed 257 of 17 European countries, including Spain, France, UK, Germany, Ireland, Italy, Portugal, Sweden, Finland, Norway, Denmark, Austria, Switzerland Greece, the Netherlands, Luxembourg and Belgium.

It can be observed how Spain holds the second place in number of pilot schools in Europe. An extra benefit of Spanish pilot schools is the geographical position, where the climate and annual daylight hours allow more time to carry out flight instruction.

The most valued European flight schools are located in the following map.

Evaluating the results of the ranking Garofali, it can be inferred that aeronautical training in Europe has had a very positive development, having a very varied offer. Moreover, according to ICAO predictions, this sector will grow in the following years.

For these reasons, it is reasonable to enter this market with VLADIMIR, an aircraft design conceived specially for training purposes.

 

 

 

 

 

 

 

 

 
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