Eric Martel is in his second stint with Bombardier, Between 2002 and 2015, he oversaw several business units of the manufacturer, including its business aircraft group. He then left for nearly five years to run the public utility Hydro-Québec, and returned in March 2020 to become president and CEO.
From reducing emissions to finding new markets for its products, the business jet industry may evolve more this decade than in any 10-year period since Kitty Hawk. Bombardier’s Éric Martel is leading the charge by focusing on communication and collaboration.
Soon after Éric Martel returned in March 2020 to run the business aircraft manufacturer Bombardier Inc., he led them through a crisis that turned into a business opportunity – all because of Covid-19.
Initially, the pandemic sharply reduced air travel, especially on commercial flights.
Yet it soon minted new customers for the business jet industry as high-net-worth individuals and corporate executives who had previously flown commercially recognized the safety and convenience of private aviation.
“They turned to business jets for two reasons,” Martel told us. “First, very often there were no commercial flights available for where they wanted to travel. Secondly, they felt safer traveling within smaller groups or with their own families on a business jet compared to sharing a large commercial jet cabin with 300 people.”
Growing this emerging customer segment is one of several changes that Martel is helping lead in the business jet industry, which Fortune Business Insights has forecast will grow from $25.87 billion in 2021 to $36.94 billion by 2028.
Taken together, these changes could transform air travel in a way it hasn’t seen in any decade since the Wright brothers flew the first airplane on December 17, 1903.
Addition by subtraction: In late December of 2021 the private aviation industry was roughly 15% larger than it was two years prior, according to Travis Kuhn of the consulting firm Argus International.
Peering into the future is part of Martel’s daily work. Decisions he makes today can take months, or even years, to impact the market. This is why, for example, Martel recently opted to deploy dozens of employees to suppliers to identify and attempt to mitigate supply chain issues many other companies are experiencing due to the pandemic.
Making customers feel at home
Pre-pandemic data found few people who had the means to fly privately had chosen to do so, according to a McKinsey study.
Tech entrepreneurs who flew commercial over the last five years were worth $5 million on average, with annual incomes of $3 million. This would be an untapped customer base for private aviation. “The potential for market growth is huge,” Martel said.
To attract these customers, business jets must offer the comforts of the office and home including noise reduction systems, strong internet connectivity, and other innovative amenities. By ‘amenities’ Martel means features like the industry’s first voice-controlled lighting, temperature, and entertainment systems.
“The other aspect we hear about are aftermarket services,” Martel said. “Today, technology allows us to troubleshoot a problem before customers land. When they’re back on the ground, we can have a technician standing by to support as needed.”
Reducing environmental impact
The business aviation industry is moving aggressively to reduce CO2 emissions and encourage the adoption of sustainable aviation fuel (SAF). The industry is on track to fulfill its commitment from nearly 10 years ago to cut emissions in half relative to 2005 Martel told us.
Consider the work of the SAF+ Consortium, a Quebec company specializing in developing clean fuels produced using the capture of CO2 emissions from industrial sources. In September, the business announced one of the first productions of sustainable aviation fuel PtL (Power to Liquids) in North America.
Generated in its pilot factory east of Montreal, the e-fuel combines CO2 from industrial sources with green hydrogen produced in Quebec. SAF+ said it aims to bring to market, by 2025-2026, synthetic kerosene whose carbon footprint is reduced by 80% compared to fossil kerosene.
“Biofuels can give you substantially lower emissions,” Martel said. “It is important that we as an industry continue to promote the availability and adoption of biofuels at airports where business aircraft fly in and out. Yes, it’s more expensive … but if we have greater demand and more supply to offer, the cost will come down.”
Electricity could produce another 20% cut in emissions, though decades will pass before it can power long-range flights. “Hydrogen would be extremely heavy and would basically limit your mission substantially. But if you’re talking about a short flight, it is possible.”
Purchasing plans grow: Honeywell projects increased sales of new and used business jets in coming years, including: Up to 7,400 new deliveries worth $238 billion from 2022 to 2031, a rise of one percent from 2020’s 10-year forecasts.
Source: Honeywell’s 30th annual Global Business Aviation Outlook
It is imperative to invest significant amounts of research-and-development spending into developing technology to reduce emissions believes Martel. One is looking at new shapes for airplanes to reduce drag, and that has him excited.
Of course, the implementation of innovations and technologies like that will take time, “another 10 years or so,” he added.
Safety in the skies
Much as going green is a constant challenge, so too is cybersecurity, whether within corporate walls or in the software that controls airplanes. A 2019 report from the Atlantic Council, a Washington, D.C.-based think tank, pointed out that managing risk and getting insight on it will likely become more complex as aviation companies adopt emerging technologies such as machine learning, autonomous aircraft and electric vertical takeoff and landing (eVTOL).
With the ever-increasing number and sophistication of cybersecurity attacks on corporate groups, the business jet industry remains committed to maintaining the integrity of its IT infrastructure. “A big part of the industry’s investment in (information technology) is going to cybersecurity,” Martel said. “We all always must be thinking how to stay one step ahead.”
The good news is that game-changing leaders are facing private aviation’s obstacles head-on. From the pandemic to reducing emissions, from innovation to cybersecurity, they are finding solutions to problems – and turning challenges into opportunities.
“This is one of the most fantastic industries that exists,” Martel said. “There is huge potential. And I think that the pandemic worked in favor of our industry. History accelerated change dramatically.
