EBACE Cancelled: Score is Greens 1, BizJets 0

The annual EBACE convention in Geneva has been cancelled this year due to a lack of interest by OEMs and potential business jet purchasers since the event eliminated the static display of airplanes. Or, as a colleague put it, why have a business jet convention if there are no business jets?

Environmental Activism in Europe

This all started several years ago, when environmental activists breached security and chained themselves to aircraft. Their protest cited the much larger carbon emissions per passenger than airliners, and how the rich and powerful could generate higher levels of emissions than modes of transportation that “ordinary folk” use.

The protest, which did damage some aircraft, resulted in EBACE eliminating the static display of aircraft. The result was a re-evaluation of air show participation by several major OEMs, with some long-standing exhibitors and industry stalwarts dropping out, as their re-evaluations showed that other highly targeted marketing expenditures delivered a much higher return on investment.

The Economics of Air Shows are Changing

When some of the largest industry players drop out of show participation, the attractiveness of an event wanes. This has now happened to EBACE, and may happen to its sister show, NBAA-BACE in the United States during this decade. We anticipated these changes back in 2024.

That begs the question as to whether major air shows remain a positive expenditure for many of the industry players, and whether Farnborough and Paris may soon find themselves in a similar position. The good news is that the two major air shows cover defense, commercial aviation, and general aviation in one location, facilitating a strong environment for the supply chain and key industry players.

The bad news is that other more targeted marketing expenditures may bring a higher return on investment than spending on a chalet, staffing it with appropriate executives, and transporting products and displays to the show. Participation is very expensive, and may have diminishing returns.  We expect several major players to re-think their air show participation for Farnborough and NBAA later this year.

The Bottom Line

Marketing decisions, particularly when they go against years of precedent, are difficult to make. But there comes a point when times change, and business practices must adapt to new realities. A series of targeted meetings is often more cost-effective than participation at an air show.

In addition to the costs of participation are factors of risk and security. In an more divided world, air shows represent a potential focal point for a terrorist attack, particularly with senior officers of defense contractors near each other and potentially vulnerable to a terrorist attack. The downside risk of an assembly of major aerospace professional being attacked has grown, despite increases in security forces. But that, of course, raises the cost of participation.

We will miss the annual show at the Palexpo in Geneva, but recognize that the day of the airshow may be coming to an end, especially since those who come to “kick the tires” of a new aircraft have other and more tailored opportunities to evaluate new aircraft coming to market directly with the manufacturers. EBACE rest in peace.

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