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Repatriation Industry Data: True or False? You’ll have to share to find out!
You’ve heard me say it before but i’m going to say it again. Share your data. The repatriation industry is so rife with competitive paranoia that you rarely hear statistics. People like me are inevitably going to find some way of mining your facts and figures. There’s a fundamental component of any business plan that has to be missing from most of the repatriation industry. That is the question; What is the market size and what is our penetration level?’ Until you understand these two questions you are not going to be able to benchmark your company against others.
Clearly there is an argument to be made for not sharing data. The less data available means the more barriers to entry for new competitors. This sounds almost like collusion by tradition, e.g. The ‘good ole boys’ will always hold their cards close to their chest. I would argue that this is the root of competitive paranoia. An industry cannot grow/thrive unless there is a certain level of transparency. I’m not suggesting that there needs to be more regulatory oversite. Even if I was, this would be difficult as there are too many countries and regulatory bodies to create one standard. And, the industry is not big enough to get the attention of international regulatory bodies. That said, I do see the possibility of increased regulations on some domestic fronts if the initiative for transparency is not championed by the industry itself. Just watch what is going to happen in the US HEMS industry…… The regulators are serious this time!
Enough with my soap box preaching. Here’s my contribution:
I had many questions from audience members during my talk at ITIC Budapest last year. Specifically, where did I get the data on air ambulance missions in Europe and the US. For those of you who were not there, here are the stats:
- The US Domestic Market Represents Approximately 75,000 fixed wing missions per annum.
- Europe Represents Approximately 150,000 fixed wing missions per annum.
Before I give you my source, draw a ratio between the US Population and the total fixed wing flights, (i.e. 300 Million:75,000) and the same for the EU population and their fixed wing flights. You’ll see that the figures are not too far off on a per capita basis. Now, I had a senior executive from a European AA operator tell me ‘those numbers are impossible’ because we do the majority of EU transports and it’s nowhere close. ‘The number must include Rotor Wing Transports.’ It is possible that Rotor Wing may be a part of the aggregate number.
Now, my source:
The 75,000 was taken from US FAA data for flights using the ‘Lifeguard’ registration on their flight plan. For the laymen, that’s a designation which is required in order for an aircraft to receive priority clearance when landing, i.e. indicating it’s a medical flight. Now, for the people who say that number has to be for Rotor Wing as well. Keep in mind that 90% of Rotor Wing flights are VFR and not IFR which means the Lifeguard designation would not be registered or included in the 75,000.
My source for the EU data came from an EU AA operator who was willing to collaborate in exchange for our data. Their source for the EU data came from EuroControl and from the equivalent EU medical flight designation as the US Lifeguard designation.
I cannot tell you definitively that those numbers are correct but I can tell you that it’s the best and some of the first data that’s been put out there. I only know of one other report which was from AAMS which stated there was 150,000 flights per annum. It’s interesting that, their number is double ours. The ‘devil is in the detail.’ So, if you don’t agree or have different information please give us your numbers, your source and the rationale. Thanks for listening!
While this data is, hopefully an accurate benchmark, it does not address the question of how big is the market? In other words, how many patients require FWAA flights, or repatriation, or medical escort, and do not receive it because of various reasons? And, what is the rate of growth, or contraction? If the EU market is arbitrarly growing at 1% per annum, that is an additional 1500 transport missions! How many aircraft would need to be added to the fleet to serve this need? Or, how many additional missions could be served by the present operators? And, what economic value does another 1500 missions represent to the industry. I bet all players would like a share of that!
I believe the global repatriation industry has huge opportunity, but all players have to share some basic data for the benefit of the industry.
Isn’t the lifeguard designation also used when aircraft are transporting donor organs? If so then the numbers would be inflated by that segment as well.
Mark:
Thanks for your comment. I’m not sure. I’ll leave that for a pilot to answer. It’s certainly plausible since you could make the arguement that the organ transport is a life threatening condition.
Aaron