Industry Analysis & Industry Trends
The industry transports passengers on non-scheduled routes to domestic and international destinations. This is a discretionary service, which is in demand during times of strong economic growth, but crashes in times of a recession. In the past five years, the industry experienced high volatility in sales, which grew rapidly back in 2007-08 but dipped in 2008-09 and 2009-10. Demand for charter air transport began to decline at the first sign of recession, as businesses cut travel budgets and households put off holidays.
IBISWorld estimates industry revenue will contract at an average rate of 1.4% per annum over the five years through 2011-12. Revenue will continue its slow recovery to grow an estimated 2.9% over 2011-12 to total £3.44 billion... purchase to read more
Industry Report - Starting a New Business Chapter
The Chartered Passenger Flights industry is considered to have high barriers to entry, mainly due to the stringent regulation and significant capital needed to start the business. A new entrant must obtain licences and pass compliance requirement in order to certify as a carrier. This process is costly and time consuming, and compliance requirements are considerable due to safety regulation.
Moreover, some resource constraints are present. There is a finite amount of airport terminal and parking space for aircraft. While this resource will grow over time, such space develops slowly due to the regulatory requirements that must be satisfied to expand or build new airfields. The fastest way for a new entrant to acquire terminal space is to wait for an incumbent to go out of business... purchase to read more