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Charter & Other Nonscheduled Air Transportation Services
First Research, Jan 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US air charter services industry includes about 2,300 companies with combined annual revenue of more than $12 billion. Major companies include Bombardier Flexjet, Global Aviation Holdings, and NetJets. The industry is concentrated: the 50 largest companies account for about 60 percent of industry revenue.
Air charter is the on-demand, nonscheduled transportation of passengers and cargo. Companies that provide scheduled transportation of passengers and cargo are covered in the Airlines 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 (55 percent of industry revenue); international passenger travel (15 percent); domestic air freight (10 percent); and international air freight (5 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 over 4,000 general aviation airports; scheduled commercial aircraft are restricted to the 500 US commercial airports, according to the General Aviation Manufacturers Association (GAMA).
Charter aircraft include small piston prop planes; helicopters; turboprop aircraft; light, midweight, and heavy jets; and large, multi-engine jet airliners. Of the roughly 7,000 aircraft used...
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