Charter Broker Sees Recovery in 2013, but Not for All

AINalerts » December 20, 2012
December 20, 2012, 3:00 PM

Charter brokering group Air Partner is predicting further “slow but steady recovery” during 2013. However, in a forecast issued yesterday, the UK-based company also said that it expects to see more business failures in the charter market and what it says will be further contraction in fractional ownership.

“Despite the improved conditions in the private aviation sector, we anticipate seeing more foreclosures of asset-heavy aircraft operations,” commented David Macdonald, director of private jet sales. “Aviation suppliers carrying debt continue to struggle, and some major players have gone out of business in the last few months alone.”

Air Partner said customers have become increasingly disillusioned with what it claims are “the lack of flexibility, onerous fixed-term contracts and the high costs involved with the [fractional] ownership of a depreciating aircraft asset.” It said that this trend will continue in 2013, “as value and flexibility remain key drivers.”

The broker also predicted further increased charter demand from corporate customers next year. Many of these clients are companies that owned aircraft before the economic crisis of 2008.

FILED UNDER: 
Share this...

Comments

No Avatar
Suburb101
on December 21, 2012 - 3:35pm

I have spoken to many charter operators that say if their aircraft has SatCom Internet it will get chosen by customers. If an aircraft does not have SatCom Internet the aircraft sits on the ground more often.

Having a Satcom system as opposed to Air to Ground system is important because passengers want to start their web access as soon as they board the aircraft and not have to wait until they get to 10,000 ft as they do with the air to ground system.

Please Register

In order to leave comments you will now need to be a registered user. This change in policy is to protect our site from an increased number of spam comments. Additionally, in the near future you will be able to better manage your AIN subscriptions via this registration system. If you already have an account, click here to log in. Otherwise, click here to register.

 
X