Charter Airlines: Have They a Future?

Abstract

The purpose of this paper is to examine the modern charter airlines and highlight some recent significant changes. A discussion of vertical integration between tour operators and charter carriers sets the foundation for the study focus. Key features of charter airlines are examined in comparison with full-service and no-frills scheduled airlines. In response to the competitive challenge posed by the latter, charter airlines have adopted a variety of strategies further to enhance seat-only sales. The implications arising are also discussed.