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Business travel aircraft erode passengers on scheduled airlines in the US
A recent report in Flight International reveals that the growing appeal of business aircraft travel in the USA is eroding the number of high-fare business passengers on scheduled airlines, according to an air travel analysis by US consultancy the Velocity Group.
“The best-paying passengers on US airlines have dropped by almost half in the last five years, often to the benefit of business aviation,” says the Washington DC-based company.
The growing acceptance of business aircraft, the expansion of fractional ownership and pre-paid on-demand charter card programmes and a “continued rise in the airline ‘misery’ index have driven a steady expansion in the number of higher-yield travellers using business jet and turboprop aircraft”, says Velocity Group partner Gerald Bernstein.
“There are approximately 13 million one-way trips taken annually on business aircraft. The share of trips using these aircraft is now almost one-third that of airline high-yield trips,” he adds.
The analysis also reveals the number of higher-yield trips has fallen from 18% of overall airline travel before 9/11, to 9% in 2005. “Despite a rise in total airline passenger trips, the number of higher-yield trips has declined from almost 80 million to 41 million since the year 2000; 20 million have been lost in the past two years alone,” Bernstein says.
“It’s tough for most airlines to make a decent profit with 85% of passengers flying on discount fares. It will be interesting to see if the imminent competition anticipated from the emerging air taxi operations will further erode the airline high-yield segment,” he adds.
The Mole wonders if this is a trend that will begin to emerge in Australia, with more private aircraft companies and owners offering domestic and international charters and programmes which are beginning to appeal to corporations, offering contol over departure and arrival times and quality of travel, which if more than a couple of pax are travelling also begin to become cost effective – we shall have to wait and see.
Some pundits also believe that Qantas long haul flights are in due course set to become ultra long haul non stop services offering Business and First only with Jetstar International carrying the lower yielding economy passengers on aircraft not capable of making ultra long haul distances.
Report by The Mole
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