Charter Sector Gains in Anticipation of Holiday Dividend
The latest forward-looking demand index from online charter portal Avinode stood at 206.86 for December 1–up almost 90 points on the November 1 index and nearly 40 points up from 12 months ago (see Demand Index chart). Avinode’s price index for the next 30 days confirms this expected trend, albeit at a more moderate level. With an index of 99.37, projected pricing in the global marketplace on December 1 was marginally up on November 1 and almost three points ahead of 12 months ago. Projected increases were higher in Europe, with the December 1 index at 100.30–nearly two points up on a month ago and five points ahead of the Dec. 1, 2010 index. In the U.S., the December 1 index of 100.43 was up by similar margins (see Price Index). At the same time, Avinode’s latest data for actual average flight hour rates showed prices rising by between 2.1 and 7.4 percent. North American average December 5 rates for three sample aircraft were: Cessna Citation Excel €2,459 ($3,295), Hawker 800 €2,558 ($3,428) and Bombardier Challenger 604 €3,635 ($4,871). In international markets, average rates for the same types were: Citation Excel €2,790 ($3,739), Hawker 800 €3,280 ($4,395) and Challenger 604 €4,867 ($6,522).