Competition in Charter Flights Industry

While the entire nation is still struggling to lift itself up from the recent crisis, the airlines industry seems to be the hardest hit by the economic disaster. An industry that once had an unblemished record and flourished rapidly over the years has now been brought down in one stroke. But, not for long. I predict that in less than a year, the US airlines and charter flight industry will be injected with fresh blood, helping to boost its profits and thus resulting in the emergence of new and stronger competitors.

For those of you wondering about charter flights and competition within the industry, here’s how it works:

Companies and tourists that are looking to barter for private charter flight services first need to consider how these services utilize their airfare. First and foremost, most charter flight companies run on a very strict budget that is comparatively minuscule when you take into consideration the budget for regular aviation companies. While all the major airlines can afford to take off with a couple of empty seats, charter flight companies instead have to maximize their resources with each and every flight to gain profits. Yes, as the average tourist, we need to think about these narrow margins in which private jet charters work before they can begin to quote a price on their tickets.

The economics of the charter flight business is complicated by a number of factors, of which competition among multiple charter flight companies and services in tourist hotspots is topmost on the list. The narrow margins that every single charter encounters without any competition are immediately tightened when a single rival comes into the picture. Most charters try every stunt to get an edge over their competition, and that includes decreasing ticket prices as well!

Competition in the charter flight industry is brilliant for a private charter service, that is only until a major company or an independently wealthy business owners enters the scene.

The Future of the Charter Flight Industry

Since the advent of the charter flight in the US aviation market, there have been many advancements within this tiny little industry. And some of these advancements have gone a long way in helping smaller charter flight companies to rub shoulders with bigger competitors.

The use of Wireless Communications and GPS (Global Positioning Systems) makes it easier to communicate with airliners anywhere in the globe. Some charter flight services have also started changing facilities within the flights itself to stay ahead of competitors, and have started including amenities like music, movies, good food and comfort control systems.

The future of the charter flight industry is directly proportional to the future of the commercial airlines industry. And what with all of the major airlines all over the world experiencing financial difficulties that have led to reduced flights, routes, services and an overall decrease in travellers, it is time for the charter flight industry to buck up and reinvest their profits in newer planes, services, and routes to take advantage of the situation and relieve customer frustration. Charter flight companies like Flight Management International (FMGM) have already started coming up with new and better offers for those of you who wish to travel by air. Make the most of it!

Labels: ,

posted by marketkafka @ 4:56 AM, ,

Into the Stormy Skies: Economic Slowdown causing turbulence for US Aviation Industry

Some call it the ripple effect, while others call it the domino effect, but whatever term you may use; the changes taking place in the US economy are slowly yet steadily affecting all other businesses, not excluding the airline industry. Like any other industry, the airline industry also keeps changing depending on the market condition of today.

Undeniably, the current state of the market plays a big role in the demand and supply of the aviation industry. With the rapidly rising prices in oil, the cost of flight tickets have also been on the rise, leading to a steady decline in the demand for air travel. By the end of 2009, US airlines are expected to run through losses of approximately $9 billion and over. Yes, the US aviation industry is definitely going through a rough patch, as a result of which passenger growth has slowed down to a trickle and fuel costs have risen sky high.

The US aviation industry has been steadily losing money all of this year due to high fuel costs, as the cost of oil was around $113 per barrel in the first six months of this year as compared to a lowly $73 per barrel of last year. At the start of the year, forecasts for the entire year were bleak, but now that we are nearing the end of 2008, it seems that these forecasts have proven to be correct. With a deteriorating world economy that has managed to bring down fuel prices, there has been a drastic slowdown in the air travel industry.

But some experts say that the worst is yet to come, and that the US airlines industry will probably have to face 2 more years of challenges before it can rise again. This however, sadly, is the time it may take for the global economy to improve.

However, I have no doubt as to the resurgence of the US aviation industry. The industry has dealt with slumps in the past and has overcome these obstacles and will do so again this time. As for the charter industry, it has been as badly affected as the rest of the airlines industry, but charter flight services all over the country like Flight Management International (FMGM) are bouncing back with some of the best rates in the charter industry at this time.

Labels: , , ,

posted by marketkafka @ 9:39 PM, ,