Air Transport International Competition
Now Viewing Air Transport International's competition in: Air Charter Services
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the company partner with air charter brokers? - Air charter brokers connect interested buyers with national networks of managed fleets and individual aircraft owners.
How does the company attract new clients? - Companies use word-of-mouth, industry publications and magazines, and media relations to gain new customers.
Does the company provide online price estimates? - Some brokers and operators use the Internet to provide price estimates. Most charter sales are over the phone.
What are the company’s per-hour rates for charter flights? - Prices vary based on customer needs, type of aircraft, fuel costs, taxes and additional charges, but hourly rates can range from $1,000 for a turboprop that seats four to as much as $8,000 for a heavy jet.
If the company offers fractional ownership, how are the shares sold? - Shares are typically sold in one-eighth or one-sixteenth fractions with a typical one-sixteenth fractional contract lasting five years and providing 50 annual flight hours.
What does the company charge for fractional shares? - A one-sixteenth fractional contract typically costs around $500,000 each year plus additional hourly usage and monthly management fees.
Does the company offer a jet card program? - Jet card programs are a new pricing model that provide 25 hours of fractional airline flying time.
If the company has a jet card program, what is the cost to fly? - Jet cards require deposits from $100,000 and $250,000. The cost of flying hours ranges from $5,000 to $10,000 for domestic travel and is deducted from the initial deposit.
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.
Business Challenges
CRITICAL ISSUES
Demand Tied to Economic Cycles - Corporate profits and hiring trends strongly impact the use of air charter services for both business and leisure travel. Air charter services are typically a luxury item that can be cut during tough economic times. Operators face high carrying costs during economic slowdowns, as charter airplanes sit idle on runways and load factors fall.
Competition from Alternative Products - Air charter competes directly with commercial airlines and auto transportation. A company looking to cut costs may require executives to fly commercial aircraft or rent a limo rather than charter an airplane. The air charter industry argues that charter flights can save time and money because general aviation airports provide access to a greater number of US cities. Rarely is air charter travel the only transportation available.
Industries Where Air Transport International Competes
- Transportation Services
- Air Cargo Services(primary)
- Charter & Other Nonscheduled Airplane Passenger Services
