Unchartered Waters: Surviving a treacherous charter market

Smaller is bigger

As a result of the shifting market, many charter carriers are having trouble filling their larger aircraft and have had better luck seeking out alternative markets that require smaller loads – leaving their 767s and 727s on the ground while they focus more on ATR 72s, Falcons, Convairs, and Learjets to make shorter, more-frequent flights.

“There is a vast number of small loads that could be flown by Falcons or Convairs,” said Peter D. Laub, vice president of business development for Alaska-based Northern Aviation Services, Inc. (NAS), which operates Northern Air Cargo and Aloha Air Cargo. Between the two carriers, NAS operates a fleet of 11 aircraft, including 737Fs, 767Fs and Saab 340Fs for scheduled and charter services. “While we predominantly operate the larger metal, we have experienced some loss of opportunities to the smaller-gauge aircraft,” he added.

“The charter customers want to move things,” said Derry Huff, senior director of strategic directives for Miami-based Amerijet International. “They don’t want to wait for a big load coming off the line. As soon as they have a load that will keep the line running, they move it. That means that they do three flights instead of one. They don’t want to wait 12 hours for a full plane, and they don’t care if it’s at 50 percent capacity.”

Simone says AirNet II, which straddles the scheduled and ad hoc markets, tends to focus on the customers’ end-of-schedule runs. “We’re the most successful when we’re keeping within the same region,” he said. “We can respond very promptly – and those seem to be the ones we get the most right now.” He added that the “Falcon-on-down market” has probably been busier for today’s charter work.