Virtual airline (economics)

In economics, a virtual airline is an airline that has outsourced as many possible operational and business functions as it can, but still maintains effective control of its core business.^[1] Such an airline focuses on operating a network of air services, and outsourcing non-core activities to other organizations.^[2] Contracting out services within the aviation industry has reportedly become so common that many carriers could be classed as having features of a virtual airline, although it is arguable whether any current carriers meet a strict definition of the term.^[3][4]

The term is often used to describe travel companies and ticket agencies that market themselves as airlines, but do not possess an air operator's certificate and contract with one or more certificated operators to fly and maintain aircraft, often under an air charter or wet lease arrangement. Although operated by others from a regulatory standpoint, the aircraft may display the virtual airline's livery, and may be owned or leased by that company.