Avinode Sees Charter Demand Firming Up
Prospects for the executive and private charter market appear to be climbing as the traditionally busy summer season approaches, boosted this year by demand resulting from planned travel to the World Cup soccer tournament, which kicks off in South Africa on June 11. On May 31, the forward-looking demand index generated by online charter portal Avinode stood at 122.26–almost 52 points above the index’s projected demand for the coming month as it stood on April 30 this year. This year’s May 31 index was also five points above 2009’s same-day index, suggesting that year-on-year demand is firming up (see demand index chart). Current charter rates also reflect this positive trend. In North America average flight hour rates showed double-digit growth, with the May 31 rate for a Cessna Citation Excel up 12.5 percent on a month earlier at $3,220.91. Similarly, the average rate shown by Avinode for a Hawker 800 was up 12.1 percent at $3,331.19 and a Challenger 604 was 11.8 percent higher at $4,933.55. In the rest of the world, increases were more modest, with the average for a Challenger 604 climbing 5.8 percent to $5,643.16, a Hawker 800 by 2.0 percent to $3,860.60 and a Citation Excel by 2.1 percent to $3,319.04. Avinode’s price index for May 31 reflected understandable caution as to whether these rate increases will continue, standing at 94.59–just over one point higher than on April 30 and just over one point lower than the price index for May 31, 2009.