Charter & Other Nonscheduled Air Transportation Services

Charter & Other Nonscheduled Air Transportation Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide on-demand, nonscheduled domestic and international transportation of passengers and cargo. Major companies include US-based Air Transport Services, Atlas Air Worldwide, and NetJets, along with Switzerland's Jet Aviation and the UK's TUI Airways.

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. The industry is concentrated: the 50 largest companies account for about 70% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include domestic passenger transportation, which accounts for more than 50% of industry revenue. Transportation of non-perishable goods account for about 25%, while international passenger transportation accounted for more than 10%. Other services include airport operation and administration services, maintenance and repair related services, and transportation of perishable goods.