Switzerland Charter operators feel the fiscal chill by Ian Goold A dip in demand for executive charter flights is expected to force rates down, according to leading industry players. Charter operators already are feeling a cold wind as the U.S. economic downturn is translated into reduced demand for hired corporate transport. Scheduled airlines also are suffering, with major carriers in very competitive markets such as the North Atlantic fighting to attract business-class customers. The downturn looms despite the fact that European operators have, until very recently, been reporting good charter business. One charter broker said that there had been a noticeable reduction in charter bookings by North American corporate customers.
Financial institutions are very cautious and have been putting some travel 'on hold'.
Some trips for which we have quoted have not gone ahead. Air Partner is believed to have detected reduced charter demand, particularly from North American markets. The broker believes that several recent initiatives will help it to maintain long-term growth. But Harvey acknowledged that the downturn has reduced bookings. It means aircraft are doing less flying.