The Air charter service is a business of renting an entire aircraft for multi-purposes. Air charter services are dedicated to providing air transportation for passengers and goods on established routes and schedules.
The value of the Air Charter Services market is projected to grow to US$32.7 Billion with an estimated CAGR of 3.4% by 2028
Covid-19 Impact & Market Status
The emergence of the fatal virus COVID-19 posed several restrictions on the movement of individuals and goods & services and led to the suspension of domestic and international flights across the globe. The government prohibited social gatherings on a large scale which ended up influencing all the markets negatively as well as positively. The spread of coronavirus brought the entire world to its knees. Almost all countries declared shutdowns. This resulted in disrupted supply chains. The pandemic metamorphosized systems around the world. Now that the situations are back to normal, the industry is on its way to recovering all the losses incurred with the adoption of advanced technologies.
Global Market to witness tremendous growth over the forecast period
The Global market of Air Charter Services for Charter Freight is likely to be the fastest-growing segment due to favorable situations like instant feedback, traceable delivery, and safe & secure transportation. The Charter Passenger segment is predicted to reach USD 21.9 billion with a growing CAGR of 3.1% over the forecast period. The pandemic and economic crisis posed by coronavirus hampered the market growth miserably.
The Asia Pacific Market is accounted for the Highest Growth Rate
It is owing to the development of Chinese industrial infrastructure, the market for Air Charter Services has huge growth prospects in the Asia-pacific region. China provides lucrative growth opportunities to the Air Charter Services model as the number of wealthy individuals and profitable businesses are adding up, so are the airports. In economies like Australia, India, and South Korea, the market in Asia-Pacific has projected to reach USD 4.6 Billion, while Latin America is at a 4.8% CAGR over the forecast period.
Because of the increased ease of access to private aircraft and the popularity of the air charters business in this region, North America is the world's leading region in terms of market share. It is due to the presence of a large number of high-net-worth individuals as well as an increased number of airports, the Asia-Pacific region is likely to witness the highest growth rate. Among the other geographic markets, Japan is anticipated to grow at 2.6%. while Europe and Germany market to grow at approximately 1.7% CAGR.
In the air charter services industry, corporations and large-sized businesses generally account for a huge proportion of industry revenue as businesses are capable of using charter flights to transport staff to different work sites for meetings (or for other purposes) and to transport commodities as well. Most Companies are tending to be more inclined towards chartered flights for their staff when the corporate profit is comparatively higher and it is economically stable.
With the use of an air charter, a user can rent an all-inclusive aircraft and determine the time of arrival and departure at their convenience. On the other hand, the seats of the charter flights can be purchased exclusively by the charter company or tour operators in the form of a certain travel package. Moreover, travelers can book an entire charter for a group of individuals. Rising demand for cargo charters, a growing number of the exponential net worth of companies/individuals, innovative developments in charter service portals, increase in new-generation commercial aircraft procurement are key components responsible for surging the CAGR of the market. These factors are likely to ramp up the demand for air charter services across the world.
The surge in the demand for shipment of oversized stuff through flights and challenges to fit the commodities are fuelling the demand for cargo charters and posing difficulties at the same time. However, the hike in demand is one of the core components driving the growth of the air charter services market. Elements like last-minute capacity, lack of time, and unprecedented applications have also led to the adoption of air charter, and hence the growing demand for the air charter services market.
The existence of a high number of airports and general aviation aircraft, as well as an increase in the number of charter flights, will have a major impact on the market's growth throughout the projection period. Furthermore, the growth in interest in aircraft rental and the advent of membership programmes in the air charter service industry are expected to provide profitable prospects for the leading players in the air charter services market.
The increased demand for air cargo services is a promising potential for air cargo service providers and cargo charter operators, and it is expected to boost the Air Charter Services market throughout the projected period. Due to the rising needs of consumers for immediate and fast delivery of their goods, the number of shipments sent by air has increased dramatically in recent years.
However, the worldwide outbreak of COVID-19 and rigorous restrictions by the government on domestic and international flights, movement of people, and goods & services shook the industries to the bottom. As a result, market expansion has been stifled in recent years. Furthermore, the rising cost of maintenance of air charters is also acting as a limiting factor over the forecast period.
Additionally, companies and individuals with high net worth prefer on-demand charter jets rather than purchasing one as it is too way costlier to own a charter jet and maintain. Therefore, the demand for rented jets is rapidly growing so is the global market for air charter services market.
The Global Air Charter Services market is highly fragmented with the presence of a large number of manufacturers globally. Some of the major players include Gama Aviation, Air Charter Service, Air Partner, NetJets, and Delta Private Jets.
Major developments in the Global Air Charter Services Market: a Snapshot
- Air Partner, the world's largest aviation services company, today announced the introduction of a unique Platinum Jubilee package with Rosewood London, giving residents throughout the world the chance to attend a once-in-a-lifetime event and witness a historic occasion.
Air Charter Services Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||US$32.7 Billion|
|Growth Rate||CAGR of 3.4 % during 2021-2028|
|Segment Covered||Type, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Air Charter Service India Pvt Ltd. (ACS), Air Partner PLC, Delta Private Jets, Inc., Gama Aviation Plc, NetJets IP, LLC, XOJET Sales LLC.|
Key Segments of the Global Air Charter Services Market
Type Overview, 2018-2028 (USD Billion)
- Business Charter Services
- Private Charter Services
Application Overview, 2018-2028 (USD Billion)
- Charter Passenger
- Charter Freight
Geographical Overview, 2018-2028 (USD Billion)
- North America
- Rest of Europe
- The Asia Pacific
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa