Airlines Face Paradigm Shift in Air Transport

With the launch of corporate shuttle operations by Express Jet, the increasing discomfort of travelers with traditional air transportation, the advent of very-light-jet, per-seat, on-demand service and the displacement of legions of small communities from the national air transportation system, the industry may be facing a perfect storm as non-traditional air transportation is offered to beleaguered travelers. While new forms of air transport may take time to mature, the business models will likely morph as they seek to attract more and more travelers. Even so, it is the advent of the corporate shuttle that may have the greatest impact, especially as the powerful economic arguments in their favor – savings of $53 million over a decade vs costs of $30 million over the same period – become known. Add aircraft management firms offering turnkey operations and the balance is tilted heavily in favor of a more economic form of business transportation which will gain more than $3 million annually in increased productivity for employees. For a complete analysis of this emerging market see the November 13 issue of Regional Aviation News.