Swine Flu Boosts Charter Operators as Airlines Lose Top Fliers

[FarCenter]

Sept. 15 (Bloomberg) -- Swine flu is helping charter operators like Air Charter Services Plc and Jet Direct Service Ltd. win top-paying business travelers from the major airlines as the global spread of the pandemic accelerates.

Revenue at Air Charter, a Kingston upon Thames, England- based operator with $200 million in annual sales, increased at an average rate of 32 percent month-on-month from May to August, Chief Executive Officer Tony Bauckham said.

“Most are high-net-worth individuals,” Bauckham said in an interview. “We’ve run 54 more flights in August than last year in executive jets alone, and some of that is an offshoot of not wanting to go to the general aviation terminals.”

Demand for private travel during the swine flu pandemic is boosting the charter business, worth about $33 billion a year worldwide. If the shift continues, it may hurt British Airways Plc, Air France-KLM Group and rival carriers providing scheduled service. Airlines, already facing losses due to the recession, bank on business- and first-class travelers for profit.

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[Ruby the Liberal]

1. Let them eat cake!