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The aviation market is currently extremely dynamic, probably because this cyclic industry is even more reactive to changes than others (although we see some pretty far-reaching decisions in other industries as well. Many big airlines are responding to the economic downturn by decreasing capacity, and with that finding good (temporary) placement for their staff. On the other hand, some companies adding routes and markets, like e.g. Etihad who is extending its network, holding on to orders, and even ordering new aircraft. Virgin America (and their CEO, Richard Branson) now added a route to Boston and gets attention by "shaking things up (warning: Sir Richard in special dress)".
The business charter and Very Light Jet market is struggling a lot: with the demise of DayJet in the US, discontinuation of operations by Bikkair in Europe, it seems that the taxi model is not yet strong enough to hold up during hard economical times. There are many initiatives left in this part of the industry, but we'll probably see some more falling over. Only those companies that are able to slash there fixed costs will be able to make it through. I heard estimates there are about 30 business aircraft available for 1 request. In addition many in-company aircraft are being put up for sale, either on the banks' request, or simply because flight-hours are a lot less now. Some more positive news was provided by Imagine air, an operator in the South east of the US, flying single-engined Cirrusses, who were able to make profit in 2008. This trend of "flying cheaper" will obviously continue with the economic downturn. Budget-holiday operators will do good business in the coming (northern hemisphere) summer, and LCC (low-cost carriers) will flourish if they keep the costs down, and the capacity right. As for the business charter market: customers will need to become convinced that using a chartered small aircraft is economical and the current perception should be turned around.   |
