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Air Charter Services
First Research, Aug 2009, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US air charter services industry includes about 2,500 companies with combined annual revenue of $8 billion. Major companies include Bombardier Flexjet, Global Aviation Holdings, and NetJets. The industry is concentrated: the 50 largest companies account for 60 percent of industry revenue.
Air charter is the on-demand, nonscheduled transportation of passengers and cargo. Airlines that provide scheduled transportation of passengers and cargo are covered in a separate industry profile.
COMPETITIVE LANDSCAPE
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.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include domestic passenger travel (50 percent of industry revenue); international passenger travel (15 percent); domestic air freight (10 percent); and international air freight (5 percent). Other services include surveying and photography, crop dusting, and aerial advertising.
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 over 5,000 general aviation airports; scheduled commercial aircraft are restricted to the 700 US commercial airports.
Charter aircraft include small pistonprop planes; helicopters; turboprop aircraft; light, midweight, and heavy jets; and large, multi-engine jet airliners. ...
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