Greenjets Offering 40% Off Service

As noted in a previous post regarding PSOD operators, Greenjets is one of the major players that has been doing well with the often-elusive (profitable) business model of selling seats on private jets.

Just recently, getting access to the Greenjets fleet of brokered aircraft became even easier. New clients to the company can now fly on private jets for as little $2,000 - or up to 40% off their standard retail pricing - with special introductory pricing currently being offered by the company.

Avantair Shows Its Green Side

Carbon Offsets Set New Company Milestone for Earth Day
Go Green - Environment and Profits!

Avantair, Inc., the only publicly traded company that is (still) stand-alone, is an industry leader in the aircraft fractional aircraft ownership category as previously reported. They have also recently announced that, since 2007, they offset 15 million pounds of CO2 through their Flight TerraPass program. For 2012, the company expects to do more of the same. Avantair shows that companies can go green and, in the process, still earn plenty of it.

NASA Claims Supersonic Breakthrough For Biz Jets

NASA is claiming a breakthrough in supersonic aircraft design. Recent wind-tunnel tests are proving that it should be possible to design aircraft configurations that combine low sonic boom with low cruise drag - two traits once thought to be mutually exclusive. And, until now, stubbornly elusive!

Fractured Fractionals

Fractional aircraft ownership programs - whereby customers/owners typically buy a "share" of the aircraft via a five-year management contract with guaranteed availability of aircraft - have now been around for some 25 years. While industry pundits continue to debate their true value proposition, the popularity and viability of this business model is no longer in question. In fact, the fractional industry has remained relatively robust, even with the continuing lackluster economy. Still, on average, companies that offer shared aircraft ownership programs have had a difficult time in forecasting demand and maintaining profitability. This is not quite the scenario imagined by NetJets founder Richard Santulli - who, when he first introduced the fractional concept, envisioned thousands of jets owned by tens of thousands of owners - but it shows that the industry is here to stay. Here are some updates on a few of the major players in the fractional space...

The Guy with the Dragon Tattoo

OK, it is not really a tattoo, but Jackie Chan just got a brand new Legacy 650 private jet from Embraer with dragons emblazoned all over the airplane. Seriously? Having a sleek, new, state-of-the-art executive jet that can go roughly 4,000 miles on one tank of gas should be cool enough, but dragons? Jackie has always been THE MAN but he has just taken things to a whole new level...

Imagine flying this to the next Super Bowl!

The best part of the story is that Jackie was given the $30 million dollar airplane from the manufacturer in exchange for him promoting the Embraer brand in China and other global markets. So, there you have it - the action superstar turned private jet ambassador will now be using his charm to sell private jets for the world's third largest commercial aircraft manufacturer. (Boeing is still the largest with Airbus holding the number two spot.)

Why is this man smiling?

"This delivery is a moment of historical importance to Embraer because it solidifies an already long and successful relationship between China and Embraer," said Ernest Edwards, president of Embraer's Executive Jets unit.

By most accounts, this was a great move by Embraer - a company that is looking to dominate the private jet market, from entry-level to ultra-large aircraft. Hey, if I had $30 million collecting dust, I would certainly buy a Legacy 650. I mean, who could resist the charisma of such a huge cultural icon? If Jackie's pitch does not work, just make sure the prospect sees the tail of his sweet new ride. Talk about a closer!

Spotlight Review on PlaneRed Airline

Plain and simple, PlaneRed Airline is worth watching. I just signed-up on their mailing list, and this quote is directly from the PlaneRed welcome email...

"Our goal is to revolutionize the way we fly. We don't think you need to get undressed to get on a plane. No more buying outrageously priced tickets. No more lost luggage. No more middle seats in a cramped cabin. And don't you think you deserve to always fly first-class? We certainly do. Simple and comfortable all-you-can-fly travel will soon be a reality."

This certainly sounds like an idea that could actually work. Here is a video of PlaneRed CEO Wade Eyerly discussing some of his specific plans.

The company's website (basically a launch page as of this writing) envisions an "All-You-Can-Fly Membership" that will be simple, first class, no hassle and, by most accounts, a much better alternative to the current TSA process experienced at major airports. All this for less than a grand per month! At minimum, do a Google search on PlaneRed. There is some great buzz on the company from some great publications. Who knows. They might actually be on to something BIG.

Spotlight Review on JetSuite

Of all the new players in the constant-changing world of air charter, an operator by the name of JetSuite seems to have put together a product offering that is truly innovative and ground-breaking. Sure, other companies have made claims about making air charter more affordable, but at $999 one way on some flights for the entire airplane, JetSuite definitely appears to be "walking the walk". If that weren't enough, one can also take advantage of last minute empty leg flights offered by the company for as low as $499. This is all happening in the context of an economy that continues to struggle. One has to wonder if this type of business model will be sustainable. (That's another way of saying, better get while the getting is good!)

Surprisingly, the keys to JetSuite's apparent success seem very straightforward - use of a modern fleet (Embraer's Phenom 100), a limited service area (US West Coast) and smart marketing and promotion. Still, espousing a strategy and successfully executing it are two different things. This company is definitely worth a closer look.

One of JetSuite's Phenom 100s - gotta like that red stripe!

Virgin Galactic et al Continue To Make Progress on Space Tourism Goal

While still a couple of years from commercial launch, Richard Branson and his Virgin Galactic space flight company continue to make steady progress towards their goal of taking tourists into space. Just recently, a BBC journalist was given an exclusive first look inside the spacecraft.

Despite the cramped space, Virgin claims to have deposits from 400 customers who are willing to shell-out $200K each for the two hour flight that will include at least five minutes of weightlessness. And, the view from what is essentially the Kármán Line and 62 miles above terra firma? It promises to be spectacular for those willing to make such a large gamble, both in terms of cost and the inherent risk associated with space flight.

Of course Virgin is not the only company looking to exploit the final frontier. Their space initiative seems to be just the tip of the proverbial iceberg...

Per-Seat, On-Demand (PSOD) Air Charter is Here to Stay

Per-seat, on-demand (PSOD) - an air charter acronym and new business model coined by the now-defunct DayJet air taxi company - has certainly taken its share of lumps but the concept is seemingly here to stay. The premise is a simple one. On any given private jet flight, an air charter operator sells a single seat on a as opposed to the entire airplane. The operator derives more business while the (presumably new) customer gets a seat on a private jet for a price similar to that of a full-fare airline coach ticket. So far, the PSOD concept and business model has proven to be as elusive as the quest for the Holy Grail. Besides DayJet, the aviation graveyard is littered with the remains of numerous other companies such as POGO, SATSair, FlyMiwok, etc. who tried but ultimately failed in refining the PSOD idea.

(For the right price, who wouldn't want this Gulfstream seat?)

So why did DayJet & Co. fail at selling charter seats? And, probably more importantly, why are others companies still trying to get blood from the same turnip? Upon closer inspection, DayJet used the Internet to allow customers to propose when/where wanted to go; and, with the help of proprietary scheduling software (now part of DayJet Technologies), this data was aggregated - the end result being an air taxi flight with multiple disparate passengers. The Department of Transportation (DOT) has used the term "opaque aggregation" as another way of describing the PSOD concept. Single travelers propose their travel preferences but they can not see the preferences of other travelers. If they did, that might be interpreted as a scheduled flight - a huge no-no in the regulated world of air charter. DayJet's ultimate downfall may have been the result of the mystery surrounding the new booking process. Also, in the context of a deteriorating economy, DayJet was targeting an entirely new market segment - one that puts a premium on customer education.