Ownership 3.qxp_Finance 25/01/2022 12:58 Page 1
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Planning to Charter Your Jet? Assess the Market Following on from the previous discussion ‘Is it worth chartering out your jet?,’ René Armas Maes provides a sample market analysis to provide guidance on determining charter demand for your aircraft… or those business aircraft owners, or prospective owners, planning to charter their aircraft out when it’s not being used, it’s important to assess the market size and understand the importance of the charter market both domestically, and internationally. By having a knowledge of the leading players and market size, you can identify the best Part 135 players that could help you offset some of the fixed costs of ownership by placing your aircraft under an aircraft management agreement with them. You’ll also form a good idea of the most common areas of charter demand, and how your aircraft can possibly help meet that demand. But how can you approach such a market analysis? Within the following article, we have utilized some historical data on the Canadian charter market in 2019. This data is not intended to provide up-to-date charter market analysis, but is simply included with the intention of sharing insights on how to do an effective market size analysis.
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How to Conduct a Charter Market Survey
Conducting a detailed analysis of the size of a country’s corporate jet charter market involves a number of different steps. 52 Vol 26 Issue 2 2022 AVBUYER MAGAZINE
Several databases, including ARGUS TRAQPak, AMSTAT, Cirium fleet analytics, and annual statistics collected by industry trade groups should be reviewed for accuracy against independent data collected directly from airports and civil aviation authorities. To develop our sample ‘2019 Business Jet Charter Market Size Survey’ for Canada, first we needed to identify the current charter fleet in the country, the number of aircraft movements, and hours flown. The focus of this analysis was exclusively on Canada’s C-registered business jet activity. For simplicity’s sake, we excluded from the analysis any US and international inbound and outbound charter traffic to or from Canada. Based on data from Cirium fleet analytics, Canada had 489 C-registered business jets in 2019, and 57% of those were actively flying charter services, either on a full-time or a part-time basis (i.e. when not being used by the aircraft’s owner). Taking the fleet size into account, and using ARGUS TRAQPak data from 2019, we were able to discover that close to 36,000 hours were flown on domestic and international charter services in Canada by Cregistered business jets over the course of the year. The split was 32% domestic flights, and 68% international. www.AVBUYER.com
