Charter brokering group Air Partner is predicting further “slow but steady recovery” during 2013. However, in a forecast issued yesterday, the UK-based company also said that it expects to see more business failures in the charter market and what it says will be further contraction in fractional ownership.
“Despite the improved conditions in the private aviation sector, we anticipate seeing more foreclosures of asset-heavy aircraft operations,” commented David Macdonald, director of private jet sales. “Aviation suppliers carrying debt continue to struggle, and some major players have gone out of business in the last few months alone.”
Air Partner said customers have become increasingly disillusioned with what it claims are “the lack of flexibility, onerous fixed-term contracts and the high costs involved with the [fractional] ownership of a depreciating aircraft asset.” It said that this trend will continue in 2013, “as value and flexibility remain key drivers.”
The broker also predicted further increased charter demand from corporate customers next year. Many of these clients are companies that owned aircraft before the economic crisis of 2008.