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Trends Favoring Business Aviation

Responding to high fuel prices and stockholder demands for greater returns- scheduled Airlines in the USA are adopting strategies that increase passenger load factors by reducing capacity and focusing on hub airports—trends that reflect the need for Business Aviation- notes Jack Olcott.

Jack Olcott   |   1st June 2013
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Jack Olcott Jack Olcott

Possibly the world’s most recognized advocate, if not expert on the value of Business Aviation,...
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Trends Favoring Business Aviation
Responding to high fuel prices and stockholder demands for greater returns- scheduled Airlines in the USA are adopting strategies that increase passenger load factors by reducing capacity and focusing on hub airports—trends that reflect the need for Business Aviation- notes Jack Olcott.

Report No. ICAT-2013-02 published in May 2013 by the Massachusetts Institute of Technology’s International Center for Transportation describes a recent trend by scheduled Airlines in the USA to reduce the number of flights available for passengers as well as increase concentration of activities at hub airports. As shown in the charts below- since 2007 the number of departures by scheduled air carriers has fallen by over 14 per cent at all domestic airports and by over 21 per cent at smaller airports- due mainly to major Airlines reducing frequency of service to large hubs and removing direct flights to small and medium-sized communities.

Furthermore- the report concludes that the trend toward frequency reduction and hub concentration— a policy it calls “Capacity Discipline”—is likely to be practiced throughout most of the next decade.

Coupling this trend with the reality that business aircraft have traditionally provided access to nearly 10 times the number of airports with any scheduled service and about 100 times the locations with schedules that meet the demanding needs of many business travelers- and it is clear that our nation requires the added dimension of transportation that Business Aviation provides.

Transportation in its many forms is a necessity for our nation’s economic recovery. Rural America is primed to welcome companies willing to establish a new plant or expand existing facilities- thereby creating jobs. As scheduled Airlines increase their concentration on established hubs- Business Aviation provides access to emerging opportunities.

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