Airlines’ Loss Not Necessarily Bizav’s Gain

 - September 12, 2006, 9:57 AM

Into an environment in which airlines perceive business aviation as competition for high-end travelers comes a study suggesting that business aviation is not necessarily benefiting from airline losses. According to the analysis–from Washington. D.C. consulting firm The Velocity Group–by fare category and estimates of business aircraft ridership, both the airlines and business aviation have shown similar growth between 2000 and 2005. Airlines have been hurt in the so-called “high yield” area of full-fare coach, business class and first-class seats. In those seats, the losses have been dramatic, from 79 million in 2000 to 41 million last year. “Those high-yield passengers are moving to discount carriers and looking for better fares,” said Velocity Group’s Gerald Bernstein. “It’s not a wholesale migration to business aviation.”