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The North America Charter Jet Services Market is anticipated to grow at a CAGR of over 3% during the forecast period.
- The increase in per capita income of the middle-class population in the region is enabling them to opt for charter services for satiating their exquisite tourism needs. This is encouraging charter service providers to expand their fleet to cover new routes in response to the rising demand and serve a larger market.
- The emerging aviation emission norms and the diversified requirement of the clientele to personalize their travel experience have bolstered the demand for newer generation aircraft. Also, the presence of a large High Net-worth Individual (HNWI) clientele in North America has had a positive effect on the demand-side dynamics of the market, while the associated ownership benefits, in terms of evolving fractional ownership or private jet card programs, has been a decisive factor promoting the growth of the market in the region.
Key Market Trends
Increasing Customer Preference for Luxury Travel Bolstering Demand
The preference for luxury travel has been growing rapidly in North America mainly due to the presence of many HNWIs in this region. As per the 2019 edition of the Credit Suisse Research Institute’s Global Wealth report, there are around 84,035 ultra HNWIs in the region. To provide a personalized experience, aircraft charter operators are leveraging state-of-the-art innovation to offer a complete suite of flight solutions?from fixed-price charter to customized membership programs. For instance, XO Global LLC, a leading charter service provider based in the US, deploys turnkey solutions to offer an asset-light alternative to full jet ownership and the rigid, non-refundable jet card and fractional jet ownership models. The company operates a fleet of 116 owned aircraft, and 1,500 partner operator aircraft, to provide a distinguished level of service even while booking single seats on shared flights. Several other charter operators are trying to attract customers by launching different schemes that enhance the convenience, dependability, and efficiency on offer. Such developments are envisioned to drive the business prospects of the players in the North America charter jet services market in the upcoming period.
The United States is Anticipated to Dominate the Market
The US is anticipated to dominate the market in focus during the forecast period. Certain factors, such as the presence of many HNWIs, increasing demand for newer generation aircraft, and the evolution of new aircraft ownership models have propelled the business prospects of the market players in the US. For instance, in October 2018, Embraer SA introduced the most disruptive and technologically advanced aircraft into mid-size and super mid-size categories - the Praetor 500 and Praetor 600 business jets. The Praetor 500 is the fastest mid-size aircraft that can traverse for over 5,500 km without the need to refuel. Furthermore, to fulfill the demand of consumers in this region, air-charter operations have undertaken a fleet-modernization initiative, which has resulted in the dispersal of several contracts for procuring new business jets. For instance, in October 2019, Embraer SA signed USD 1.4 billion deal with Flexjet, a leading charter operator in the US, for delivering the Praetor Jets, and Phenom 300. Such developments are envisioned to bolster the growth prospects of the North America charter jet services market during the forecast period.
The North America Charter Jet Services Market is highly fragmented and not a single company holds a dominant share. In the US alone, there are around 964 registered aircraft charter operators. While some of these operate on select routes, some operate a vast fleet and support both national and international travel. The market is highly dependent on technological advancement and product innovation, and hence mid-size to smaller companies are increasing their market presence by securing new membership contracts and by tapping new markets by operating on new routes. Additionally, luxury travel and comfort is also enhancing capabilities for the market growth, For instance, in November 2019, Seattle-based TCS World Travel introduced a new-built A321LR Airbus SE corporate jet, which has set new standards in the luxury air-travel market, which includes jet expeditions. This jet delivers new standards in comfort and convenience, and also saves time for traveling to a certain destination.
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