Mr Fiddler set up Martyn Fiddler Associates in 1984 as a corporate services provider but went on to become a leading expert and industry voice in VAT, customs and ownership of business aircraft. 

He began his aviation career in operations at British European Airways at Gatwick Airport before joining Universal Aviation at Stansted. 

He also launched Helicopter and Aviation Services (HASL), focusing on transporting VIPs to major sporting events in the UK. He sold the business in 2001.   

Martyn Fiddler Associates was bought by Inter-Continental Management Limited (ICM) in 2006, eventually becoming becoming Martyn Fiddler Aviation in 2016.   

Mr Fiddler phased in his retirement in the mid 2010s but continued to retain a handful of VVIP clients until a few years ago.  

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Brian Foley, founder, Brian Foley Associates tells Corporate Jet Investor (CJI) that he  is not promising that it will live up to the last two years. “2023 is likely to be uncharacteristically normal compared to the recent past.” But he does expect the rising tide of new entrants to private jet aviation to ebb.

Less than 10% of those new to general aviation “will remain in the fold”, he says. That compares with some charter providers reporting new clients accounting for up to 50% of their business last year.

“First-time users can be lured by making the initial process as painless as possible, but keeping them is really outside the industry’s control,” Foley tells us. “Private aviation is a discretionary spend, and there are external factors that always conspire to end the romance.” Queuing up to sour that romance are: improved airline schedules, fewer health issues, unfavourable 2022 stock portfolio statements and worry about a possible economic recession. “It still favourably raises the baseline obtainable market for the industry from this point forward.”

Other key challenges of last year – including manufacturing supply chain disruptions and labour shortages (other than the pilot shortage) – have already begun working themselves out going into 2023, he says.

Richard Aboulafia, MD, AeroDynamic Advisory acknowledges that retaining newcomers will be a key challenge – albeit a little overstated. “Purchasers and fractional share purchasers have made commitments that aren’t easy, in the short term, to get out of,” he tells CJI. That leaves charter market entrants. “Here again, I’m not sure what, if anything, can be done, since it’s really just a function of airline service being restored to smaller markets (and with reasonable frequencies) over the next 12-24 months.”

The big challenge for manufacturers will be to maintain production discipline, particularly as supply chain disruptions are resolved. But at present, production rates are steady, prices are increasing, and backlogs are large and healthy again. “Rising production rates would jeopardise that. Here again, not sure I see a way to stop any OEM who starts trying to out-build the others.”

Environmental and social governance (ESG) concerns will remain a challenge – but one that can be mitigated by concerted industry action. “Making bizav a test market for SAF [sustainable aviation fuel], a pump-primer market if you will, would be a great message to send and it would be genuinely good for all concerned,” says Aboulafia. “Since bizav is less cost-conscious than the scheduled air crowd, there’s greater potential for up-front SAF adaptation.”

Sustainability was also selected as the third of six top challenges facing business aviation by Heather Gordon, legal director aircraft ownership and leasing specialist Martyn Fiddler Aviation. The industry needs a plan to boost decarbonisation and to “own that narrative”, says Gordon. The other five challenges are: The (real) war for talent, Coping with the downturn, Activism on social media, Crime, sanctions and politics and Investing in innovation.

The industry is changing and much of that change is coming from external forces, Gordon tells CJI. “The challenges predicted to affect us in 2023 are very much concerned about how to safeguard the future of business aviation; and that relies increasingly on the younger generation and new talent entering the industry.” Talent that will require private jet aviation to share its industry knowledge, pay forward opportunities and increase its diversity and inclusion.

But what do you think? What do you think are the top three challenges facing business aviation in 2023? And – just as important – how can the industry meet those challenges in the year ahead? Please let us know.

As Bowie said: “Tomorrow belongs to those who hear it coming.”

David Bowie’s advice for business aviation: “Tomorrow belongs to those who hear it coming.”

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The five insights were: War and sanctions, Living with Covid, Sustainability and carbon neutrality, Lessons in governance, Booming values and looming recession. 

“Business aviation can now be considered post-pandemic,” said the company. “However, despite the relief at leaving Covid behind, we have entered a new era where events – war, sanctions and recession – which we all thought were confined to history are back.”

War and sanctions, after the Russian invasion of Ukraine, is having a big impact on business aviation. “Restricted flying for all Russian nationals across Europe, America and Australia, together with asset seizures and sanctions has resulted in significant cuts to income streams for many in the business aviation industry.”

Sanctions sparked record business for specialist legal counsel to understand the restrictions and how these apply between jurisdictions, said the company. Attempts to circumvent the rules have led some to incur fines, confiscations and other penalties. One recent example, in Malta, was aircraft operator, Emperor Aviation sanctioned by the US Office of Foreign Assets Control (OFAC) along with eight related aircraft. 

Despite hopes for a speedy resolution of the conflict, the company warns business aviation should expect sanctions to be a continuing theme throughout 2023 and beyond. “Sanctions, restrictions and the damage to business aviation in Russia will likely only worsen in the short term.”

Living with Covid will remain a key trend this year, as in 2022. “Kicking off with CJI London in February over 500 colleagues from around the world were eager to meet in person, catch up and generate new business,” said the company. “In May, following a two-year hiatus, EBACE saw over 12,000 visitors and over 300 exhibitors at Europe’s flagship business aviation event.” Also, the Isle of Man Aviation Conference celebrated its tenth anniversary in its 12th year with “bumper numbers of attendees and sponsors”. 

But questions have been asked whether the lessons of the global pandemic have been forgotten in the rush to reconnect, said the company. “The next few years may see a balancing between in-person events and video interactivity to develop relationships and get deals over the line.” Martyn Fiddler believes face-to-face meetings and conferences will continue to be the preferred form of networking. 

Sustainability and carbon neutrality was another insight from last year. While business aviation is not the only industry to be placed in the spotlight by climate groups, it does attract considerable media attention due to high profile aircraft owners. “While many in the industry correct misleading media claims about emissions – business aviation only accounts for 0.2% of global CO2 output – some leaders are now saying it is not enough simply to be reactive in such situations,” according to the company. 

Although a proactive approach is needed to defend business aviation’s sustainability record, the company also highlighted the need for care when reacting to climate critics on social media platforms. “This warning comes after posts from commentators on LinkedIn regarding the Schiphol protests [last November] were taken as direct quotes from the industry by leading newspapers and media outlets. While the authors of the posts most likely did not think this would happen at the time of writing, this is the danger of the digital age.”   

Sustainability and reducing emissions was at the forefront of every business aviation event last year. Continued progress in 2023 depends on taking the initiative in  messaging and being “mindful of how the industry presents itself to the rest of the world”. 

Lessons in governance learnt in 2022 will continue to apply in 2023. The fallout from the collapse of Greensill Capital caused significant damage to Credit Suisse, and lawsuits continue to hurt Boeing’s rehabilitation, noted the company. KPMG received a multimillion-pound penalty in relation to its audit of Rolls-Royce, and Airbus faced a class-action lawsuit in the Netherlands regarding claims it failed to adequately disclose information. 

The promotion of ESG (environment, social and governance) by prominent business leaders and high profile investors is at an all-time high, said Martyn Fiddler. Also, there are regulatory and social initiatives to encourage better corporate governance around the board table internationally. “Often the problem businesses experience with governance is implementation; businesses either don’t understand the benefits of good governance or consider lip service to governance sufficient to avoid scrutiny – ‘governance washing’.”

Booming values and looming recession was the final insight likely to shape business aviation this year. Last year saw rising aircraft prices and higher numbers of first-time buyers coupled with falling global inventory. This resulted in manufacturers boosting production and the second hand market experiencing unprecedented demand, said the company.

“Peaks and troughs are nothing new for business aviation, however, 2023 will expose which businesses have learnt lessons from the crazy highs and dismal lows of the last decade,” said the company. “Have businesses put in place mechanisms to safeguard themselves as demand diminishes?” 

Recession may benefit those well placed to see opportunities and bargains, but many businesses, both new and established, will suffer, predicted the firm. “We believe that economic gains will shift during 2023 – as they do in each recession period -–and those that benefit will look to business travel to further their returns.”

The company concluded the five insights with advice to expect the unexpected during 2023. “We can only face the future if we have a flexible (rather than fixed) mindset,” it said.       

Five top business aviation insights from last year

1. War and sanctions
2. Living with Covid
3. Sustainability and carbon neutrality
4. Lessons in governance
5. Booming values and looming recession.

• Source: Martyn Fiddler Aviation.

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The panellists were unanimous that safety is the key factor when determining which registry to use. The international acceptance for the safety regulations of individual jurisdictions and of their enforcement are crucial. Failing acceptance, there is always the risk that when a plane lands in another jurisdiction it could be grounded on safety grounds. Inter-jurisdictional trust is crucial, and no jurisdiction can afford to have its regulatory and enforcement regimes questioned.

But there are other considerations. Len Cormier, Bermuda Civil Aviation Authority, told delegates that providing a good service is also crucial. By way of example, the Bermuda CAA has opened a new branch at Farnborough to be able to serve clients for more hours in a day. He was echoed by Alexandria Colindres who was clear that her organisation, The Registry of Aruba, was approachable on matters associated with aircraft operations. It does not exist to provide tax advice to aircraft owners. So, too, was Richard Smith, Civil Aviation Authority of the Cayman Islands, who made reference to the popular misconceptions that have arisen since the publication of the Paradise Papers.

As David Colindres, San Marino Aircraft Registry, expressed it: “Good safety oversight, being personable and following up. We have to strive to grow the market.” This is what registries are about, competing not through the hard sell but by providing boutique services that best serve the client’s needs. There are barriers to entry, cost barriers as well as regulatory ones, As Len Cormier, Bermuda Civil Aviation Authority, explained, the cost of entry can be prohibitive, and then there are the technicalities of ensuring that regulations comply with those demanded by the ICAO.

According to Simon Williams, Isle of Man Aircraft Registry, the industry knows that the Isle of Man has a wealth of experience and knowledge in the world of aircraft – and that it’s integrity is second to none. In other words, why should anyone consider switching regulatory jurisdiction? It’s reputation is central to each registry’s ability to attract new clients looking to register their aircraft or retain those already registered.

Does a European registry need to be in a country that is a member of the EU? The question was aimed at the Isle of Man’s possible future. But as David Colindres pointed out, San Marino is not a member state and it is steadily growing in aircraft registration.

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