1. ABSTRACT
In 2014, demand for charter flights within Europe declined for the 13th year in a row. This
decline in demand, as well as a decrease in yields, has put the European charter carriers
under financial pressure. Consequently the charter carrier industry has consolidated. This
study looks to find a solution to this increased competition by determining how the
European charter (leisure) carriers can operate profitably in the short term.
In order to achieve this, the business model of the charter carriers through time is explored.
Then, the current position of the European charter carriers in the aviation environment is
analysed. In order to build upon this existing literature, a four step thematic analysis was
used to analyse the 15 interview transcripts. Both the primary and secondary research is
consequently synthesised into a strengths, weaknesses, opportunities and threats (SWOT)
diagram, in order to then use this tool to develop a new strategy.
The findings showed that differentiating from the competition will not be easy. The research
showed in order to operate profitably the charter carriers will need to; consolidate,
differentiate, fly on defendable niche routes, be aligned to and pass the risk onto a tour
operator, fly a common fleet, adapt to change, have a strong brand, offer direct and seat
only sales, offer dynamic packaging and become monopolies on their most profitable
routes.
As an applied piece of research this study is of immediate use to the European charter
carriers when developing their short term strategy. The study can assist the charter carriers
in choosing destinations to fly to, as defendable niche routes was suggested as the most
profitable choice. It can also assist when making a decision on the purchasing of next
generation aircraft, something which is suggested to be a game changer in the future of the
European charter carriers.
Keywords: Airlines, Holidays, Strategy, Thematic Analysis and Tourism.