I'm currently studying aviation operations at A-level. In my course i've done topics of the aviation industry and also airline economics, marketing and aircraft peformance. So i decided to choose a leisure airline as an example of airline economics. I chose to do the largest charter airline in the world Thomson Airways Ltd. During research i found out that charter handles the least pax per year out of scheduled and lowcost carriers. I also found out that during the 80's and 1990's charter handled more pax than they was doing now. Also lowcost airlines now operate to touristy destinations and seem to have more flights per day to these destinations than what charer airlines do and charter specialize in touristy destinations. This may be because holiday makers are more independant now with booking holidays. One reason being the internet. Tourists can now find cheaper hotels and cheap flights than rather going for a package holiday. For example using a lowcost airline which is very cheap and purchasing their own accomadation rather than getting a full package. Do think in years to come charter may phase out completely? And i think days of going to the travel agents and getting a package deal are slowly going... INTERNET? What's your views on this do you think charter will remain to be succesful in terms of an airline and a business?

 

Another example of Lowcost competing with charter is in flight entertainment and meals. Many charter airlines don't use IFE no more, so therefore lowcost can even compete with charters level of service: No IFE standard economy service?

 

Thanks,

Tom

The short answer is no. There will always be a need for charters, but possibly on a reduced scale, as you seem to be finding. However the market may not be tourists, it's more likely to be business/industrial. For example, the Australian FIFO (fly-in/fly out) market has increasing numbers of 90-180 seat liners on routes that are for industrial rather than tourist reasons. While scheduled, they are chartered by companies. Some of those charter airlines also fly non-charter routes as well (having established themselves in the charter market and then expanded), often as feeders for larger airlines. Skywest and Alliance are examples, if it helps.

 

Of course, at the smaller end of the market there will always be charters to take half a dozen people where RPT doesn't operate direct to. But that doesn't appear to be in your scope, which is fair enough.

 

Mike

The airlines themselves have morphed into the travel agent package dealer. If you notice when you go to buy your ticket they also try to offer you cars, hotels and entertainment. Charter is also done by scheduled 121 airlines as well. A big group can rent an aircraft from an airline to fly them where ever that airline can get into. The airline I work for we usually take business groups for their retreats. Sports teams, military, and the local governments also fly on the aircraft as well.

Don't forget, if an Aircraft goes tech, we need a charter company to be there for us to charter in an aircraft to run the service at the last minute... So I think as such charter airlines will always be there, but as you say, in a much smaller form.

 

Regards,

Ró.