Charter Report 2015

The improving U.S. economy, in contrast to challenging economic circumstances affecting the rest of the world, seems to be reflected in the charter business, and activity has never been better, according to companies AIN interviewed for this special report. Charter/management firms report steady growth in fleets and business, from both management customers and buyers of charter lift.

Statistics from market analyst Argus support these claims. The Argus July TraqPak Business Aircraft Activity report (U.S. and Canada) showed charter operations up 9.6 percent compared with July 2014 and 6.1 percent month-over-month. During the past year, charter activity rose 3.4 percent, and Argus projects an increase of 4 percent during the coming year.

Overall, the charter industry doesn’t change much, but the way charter buyers and operators use technology is having an effect on quoting and selling trips, managing operations and meeting compliance requirements. On the buyer side, the ubiquitous nature of mobile devices has spawned a race for the first company to become the so-called “Uber of aviation,” and while plenty of apps make this claim, no one has truly replicated Uber’s business model: connecting nonregulated drivers with paying passengers. This model simply is not possible in aviation, unless the service provider is willing to facilitate illegal charters.

This special report examines the current state of the charter industry and some of the developments that are affecting operators and the brokers that account for the majority of charter bookings.