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        Charter & Other Nonscheduled Air Transportation Services Industry Profile

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        Excerpt from Charter & Other Nonscheduled Air Transportation Services Industry Profile

        Companies in this industry provide on-demand, nonscheduled domestic and international transportation of passengers and cargo. Major companies include US-based Air Transport Services, Atlas Air Worldwide, and NetJets, along with Switzerland's Jet Aviation (part of US-based General Dynamics) and the UK's TUI Airways (part of Germany-based TUI Group).

        The US and Europe remain the largest markets for air charter services, but industry growth is expected to come from emerging markets in Africa, Asia, and Latin America. Demand for private planes is increasing in countries such as China and India as their ranks of high-net-worth individuals and large corporations grow.

        The US air charter services industry includes about 2,180 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $22 billion.

        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. The industry is concentrated: the 50 largest companies account for about 70% of industry revenue.

        PRODUCTS, OPERATIONS & TECHNOLOGY

        Major services include passenger and freight transportation. Other services include specialty flying services such as air ambulance and firefighting support.

        Charter flights are used by wealthy individuals, large corporations, sports teams, the US military, and government agencies. In general, charter flight is more flexible, extensive, and ...

         
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