Ultimately, and unsurprisingly, the international market for private and business charter flights is a microcosm of the wider global economy in which it resides and which it serves. So, given that each new day brings fresh uncertainty and conflicting information about the fate of the world economy, why would we be surprised that the charter market too is steeped in uncertainty and insecurity?
Recent months have brought some grounds for encouragement to operators and brokers alike, but many have endured enough anxiety and discouragement since the advent of the global financial crisis some 24 months ago as to be wisely reluctant to view this as light at the end of a dark tunnel. Unpredictable swings in demand are the new norm in this market, and so too is overcapacity sustained by the continued depression in the aircraft resale sector. This has forced operators to take a cold, hard look at their cost structures as they try to survive on slender profit margins.
According to David Macdonald, product director with major brokering group Air Partner, the charter sector is now seeing steady positive growth. Air Partner’s flight bookings in the recent months of June, July and August were all ahead of the same period last year.
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