|Last Quarterly Update:||9/16/2013|
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Companies in this industry provide on-demand, nonscheduled domestic and international transportation of passengers and cargo. Major companies include Atlas Air Worldwide, Global Aviation Holdings, and NetJets (all based in the US), as well as Thomas Cook Air and Thomson Airways (both based in the UK).
The US air charter services industry includes about 2,300 companies with combined annual revenue of about $15 billion. Key growth drivers include increased business and military travel. However, high fuel prices and slow economic growth can challenge the industry.
Demand is driven by corporate profits and the needs of the US military. The profitability of individual companies depends on effective marketing and customer service. Large companies have advantages in fleet size and name recognition. Smaller companies can compete effectively by serving small local markets and offering lower prices. The industry is concentrated: the 50 largest companies account for about 65 percent of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include domestic passenger travel (60 percent of industry revenue); international passenger travel (15 percent); and air freight and mail transportation (15 percent).
Charter flights are used by wealthy individuals, large corporations, sports teams, the US military, and government agencies. In general, charter flight is more flexible, extensive, and efficient than traditional commercial air travel. Air charter planes have access to about 5,000 general aviation airports; scheduled commercial aircraft are restricted to the 500 US commercial airports, according to the General ...
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