Charter Demand Flat as Further Financial Crisis Looms
Online charter portal Avinode’s forward-looking demand index stood at 97.13 on November 7, more than 45 points lower than on October 7. Nonetheless, the current index is still three points above where it stood 12 months ago. Avinode’s price index for the next 30 days doesn’t paint such a clear picture of decline. The global price index was down marginally from last month, but almost four points higher than this time last year. According to Avinode, latest data for actual average flight hour rates show a fairly clear geographical divide. In the North American market, average hourly prices dipped 0.1 to 1.8 percent for all categories of aircraft tracked–Cessna Citation Excel, $1,736; Hawker 800, $1,851; and Bombardier Challenger 604, $2,644. By contrast, average rates internationally rose by between 1.6 and 2 percent, to €2,854 ($2,083), €3,215 ($2,346) and €4,768 ($3,480), respectively. What this international segment does not reveal is the breakdown between the charter market in Europe and the healthier trading conditions in newer markets such as Asia, South America and the Middle East.