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October 2009 Air Taxi Industry Update
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| Message from the President
Dear Colleagues,
Last month, an air taxi centered article entitled "Believing the Dream" captured a snapshot of the tough years fought through by believers. For that article, I was interviewed in London at the same hotel where the Air Taxi Association Europe was formed two years ago. It has been an unbelievable flight into the dream since then. The belief in the dream and the doubters squared off at VLJ Europe later that week. Peter Leiman from Blink articulated how his air taxi company would cross the chasm maximizing flight efficiency as Europe's turnkey air taxi service. Patrick Margeston-Rushmore rebutted that while he too believed in the dream in the beginning, reality had been sobering in the past year where VLJ air taxis only supplement existing air charter operations.
The air taxi vision is to cross the chasm to a broader market with more efficient, more democratic air travel for all. The dream initially was that reality would change quickly to match the potential. For believers, the reality of evolutionary change has been more difficult. As we close out 2009, this reality provides the perfect launch pad for companies to take off with properly set visions. While the air taxi progress has been incremental, a little and a little make a lot of progress in due time. The momentum builds and the dream inches ever closer to reality.
Best regards,
Joe Leader
President, Air Taxi Association (ATXA) |
Hanvey: SATSair Shut Down, But Not Out 
George Larson, Aviation Week
SATSair President and CEO Stephan Hanvey said Oct. 27 that although the company has ceased flying operations as of Oct. 23, it has not shut down.
"We know our business model works," Hanvey insisted. Although he declined to go into the reasons for the apparent temporary halt in the company's "air cab" operations, he acknowledged that the decline in the U.S. national economy has undoubtedly played a role. The timing of the announcement suggested that the decision was based on an eleventh-hour development.
In the past, Hanvey has expressed frustration at the difficulty he has experienced trying to convey the air taxi formula for success to the investment community. And until the surprise announcement of the shutdown of flight operations Oct. 23, SATSair, which is based in Greenville, S.C., had appeared to be a fortunate survivor in a tough business that toppled the likes of DayJet, a high-profile Florida-based air-taxi jet operator.
SATSair introduced a price increase this year that appeared to take hold as well as some cost-cutting measures that bode well for profitability. In 2008, it reported strong revenues and growth in the double digits as regional customers flocked to SATSair's alternative to airline travel. It had also introduced an automated data-gathering flight operations quality assurance system that constantly tracked aircraft and flight crew performance. It was one of the first and only operations to make such a move.
Joe Leader, president of the Atlanta, Ga.-based Air Taxi Association, professed consternation at the Oct. 23 developments and anxiously awaited further details.
"The SATSair suspension is very surprising," he said. "The model they pioneered with the Cirrus SR22 simply works as a profitable, productive business that matches planes, pilots and passengers. We've seen companies across American adding healthy SR22 capacity despite the economy."
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Light Jets in Europe
MIU Events
The 3rd VLJ-Europe conference was held recently at London Oxford Airport. Just over 100 industry professionals from 16 countries met to review how the light jet and air taxi model was progressing.
The event included presentations from all the disciplines involved in the support, supply and operation of light jets around Europe.
By popular vote the event will be re-branded for next year as Light Jets Europe, 2010.
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Private Jets - Why Waste Time on the Airlines?
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Upbeat VLJ Conference Anticipates a Positive Future for Light Jets in Europe
Revista Aerea
The mood was positive at the third annual European VLJ conference, arranged by MIU events, held during 24-25th September. The demise of the original VLJ OEM, Eclipse and maiden VLJ operator Dayjet were deemed lessons to learn from whilst consolidation, global economic downturn and a touch of realism now dominate the sector. Controversially, delegates were told to forget the term VLJ by Aoife O’ Sullivan of legal firm Gates and Partners who suggested the description is not well received by banks and insurance companies. Along with a presentation about taxation implications from Clive and Sarah Chapman of Forest Associates, the audience was left in no doubt about the importance of taking professional advice when purchasing aircraft.
With economic growth widely predicted again in 2010, “now is the time to start preparing infrastructure, and planning diversification” stated Edwin Brenninkmeyer from Oriens Advisors, specialist VLJ consultants. Highlighting that the sector was in a state of “evolution not revolution,” he suggested that offering extra services such as flight training, maintenance, or expanded supplier relationships can support a cash generative business plan. Joe Leader from the Air Taxi Association commented that the VLJ is attractive to operators and customers, but that education and information was still lacking at many levels. Attracting and acquiring customers is still expensive, he added and suggested that operators maximise technology, online booking services and use social networking VLJ sites to support the education of the market.
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Blink Air Taxis Keep Planes Small and Prices Low
Sean Ecker, genevalaunch.com
Blink air taxi service opens its base in Geneva Monday 21 September. Geneva was chosen as mainland Europe’s first base because of its central location within Europe, the difficulty business passengers here have in getting good connections, and the relatively high price of tickets, says Peter Leiman, one of Blink’s two founders and managing directors. Leiman explains that the Geneva base will allow the company to use the two planes based here to reduce costs even more.
The company has striven to keep costs low in its 15 months of operations since launch in London in 2008. The planes it flies are one of the reasons. Blink has a contract with Cessna for 30 Citation Mustang jets, a two-engined small jet which comes equipped with only 4 seats each. They are very safe and economical to fly, and being small, can land in places that bigger jets cannot, according to the company. The Mustang can land on a 1km airstrip.
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VLJs Are Vital, Says LEA...But Not Perfect
LEA, Response Source
‘Very Light Jets’ (VLJs) will play a key role in the future of European business aviation, but no one should believe that they will bring easy profits or easyJet prices.
That’s the opinion of Patrick Margetson-Rushmore, chief executive of London Executive Aviation (‘LEA’), one of Europe’s largest business jet charter operators.
LEA was the first private jet operator to introduce the Cessna Citation Mustang to the British Isles, in January 2008. The company is now operating six Mustangs, alongside six other classes of larger business jet, and has been the largest operator of VLJs and Mustangs in Europe for the past 20 months.
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JetBird Raises €5M for Launch
Contrails
With the September start date for air taxi operations in Germany rapidly disappearing, the Sunday Times reports that JetBird has recently raised €5m from investors to pave the way for the company's startup. It is not clear who the investors are but the transaction was completed through a Cypriot based company. JetBird was founded by Domhnall Slattery who's company Claret Capital has retrenched in recent months due to a number of unsuccessful investments. In an interview with the Irish Times several weeks ago, Slattery said that the start up of JetBird was absolutely critical for his own personal reputation. In July the company was forecasting four Embraer Phenom deliveries during September with a total of ten aircraft based in Germany by year end. These figures have been revised downward to four aircraft by year end. Although JetBird has had a booking 'simulator' running on it's website since earlier this summer the system is still not accepting 'real' bookings.
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Kavoo Launches New Charter Service
Deidre Wollard, Luxist
I think it takes a lot of courage to start a small air charter business at a time when taking a private charter has become a shorthand symbol of corporate greed and worse. But the allure of a private charter, of being able to skip the slog of commercial flying, continues to attract many. Kavoo, a new company out of Danbury, Connecticut, hopes to attract flyers in need of a little relief.
Kavoo's fleet includes an 8-passenger King Air 200 and Cirrus SR-22 single-engine planes. The company is owned by Curtis Brunjes and Richard Humphrey, who are also owners of Curtiss Aero, a two-year-old aviation maintenance shop and flight school located next to Kavoo at the Danbury Airport. When air travelers require larger aircraft including jets to get them to farther destinations faster, Kavoo plans to be its customers' single point of contact for all of their air charter needs through its extensive preferred provider network.
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Industry Starts to See Signs of a Turnaround
 Kirby J. Harrison, CharterX
There are still white tails sitting on the ramps, but the numbers are dwindling. The inventory of used aircraft for sale remains staggering, but it too is shrinking. The skies aren’t filled with business jets, but as of July–the last month for the which data is available–the number of takeoffs and landings was rising.
This news comes on the heels of the U.S. stock market riding a steady six-month growth period, some small increases in new home construction, and a U.S. dollar that appears to be gaining strength. And as summer cast a glow on gathering autumn, the National Association of Manufacturers announced in its “Labor Day 2009: the Manufacturing Report,” that while the economy remains fragile, there are signs of improving conditions.
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Something Like A Phenomenon
Cyrus Sigari, jetAVIVA
There's a saying, "A plane usually flies like it looks." I put that to the test on Embraer's latest release, the Phenom 100. My first impressions of the Brazilian-made machine? It looks big, really big. It looks fast and sporty, with its sleek nose design and relatively short wings. It looks like a real-deal corporate jet, beyond a VLJ.
My review started with a detailed walk around the aircraft exterior. I started at the door. Ask any aircraft designer what one of the hardest parts to design is, and you'll likely get the following answer: the door.
Embraer put a tremendous amount of effort into designing the Phenom's door, making those lucky enough to board feel as if they're getting into a Gulfstream, not a jet that costs a fraction of the price. A simple twist of the embedded door handle begins an impressive mechanical ballet as the massive airstair door, with perfect balance, lowers to the ground, providing access to the cabin.
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Blink Opens its First Continental Europe Base in Geneva 
CharterX
Earlier this week, Blink – the ground breaking air taxi service – opened its Geneva hub. Using the next-generation four seat Cessna Citation Mustang, Blink offers all the benefits of personal air travel at prices competitive with commercial business class and up to 50% less expensive than existing private jet services.
Geneva is Blink’s first base in continental Europe following the successful launch of the service in London in June 2008. Over the past 15 months, Blink has successfully pioneered the air taxi concept in Europe with seven of the 30 Blink jets on order already in service and a large pan-European customer base.
While Blink has been serving clients in Switzerland from its base in London since the arrival of its first plane, the opening of a base in Geneva will allow Blink to offer clients flying into and out of Geneva and the nearby region greater value and an enhanced service. From today, Blink will provide the Geneva market with dedicated Blink aircraft from Blink’s fleet.
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From Cirrus To Citation
Jessica Ambats, Plane & Pilot Magazine
Through my Lightspeed Zulu headset, I hear a confident voice: "Denver Center, Citation One Three Zulu Mike, vacating flight level 390 for 240, smooth ride." Our descent into Aspen marks the conclusion of a 703 nm, tailwind-blessed trip from Santa Monica, Calif., and aside from a 2,000-foot marine layer cloaking the Los Angeles Basin, we haven't encountered any weather-until now. It's IMC with moderate chop, and through breaks in the clouds loom the snowy peaks of the rugged Colorado Rockies.
Standard traffic pattern at KASE, which sits at an elevation of 7,820 feet on the southern end of a valley surrounded by 14,000-foot mountains, calls for aircraft to land on runway 15 and depart on 33.
But, today, winds are 310 at 18 knots, gusting to 28, so after requesting a circle-to-land approach on 33, tower clears our Citation Mustang for the circle. Swooping ski trails and majestic homes dot the white and green landscape below, but although I'm the passenger on this flight, it's hard not to notice the large mountain in front of us as we turn right base. "Pull up," commands the G1000 TAWS system. "Pull up!"
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Eclipse Production Restart Up in Air
Richard Metcalf, AMTonline.com
A restart of production of the Eclipse 500 very light jet is no sure thing, according to a memo by new owner Eclipse Aerospace.
"At the present time, Eclipse Aerospace has not determined when or if it will restart manufacturing operations in Albuquerque," says the memo sent Tuesday to more than 750 former Eclipse Aviation employees who have expressed interest in jobs at the recently resurrected company.
A decision isn't expected for at least 6 to 8 months. Restarting production will depend on an economic analysis as well as lining up "a wide array of suppliers and partners that need to be enlisted to participate in the process with us," the memo says.
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FlairJet will be First UK 'G' Reg Phenom 100 Operator 
Business Intelligence-Middle East
FlairJet, London Oxford Airport’s new private jet charter operator, will be the first to put the Phenom 100 on the UK ‘G’ register.
The company’s two aircraft (G-DRBN and G-SRBN), following inspection by the UK CAA’s Head Surveyor, are due to arrive into Oxford by mid to late October.
Chief Executive Officer, Captain David Fletcher, is currently undergoing type-rating in Dallas, while two other newly recruited pilots are training at Burgess Hill with CAE. In the run up to commercial launch the company has named two new management positions: Mike Chamberlain, Ground Operations Director and David Taylor, Operations Manager, both ex Jet Options managers. They join Flight Operations Director/Chief Pilot Gerry Rolls, who will also be a training captain on the Phenom. FlairJet, backed by three London-based QCs, are managing these two entry level jets from a third party, prior to the arrival of their first purchased aircraft in 2012.
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Part 135 Pressure Cooker
Ramon Lopez, Aviation Today
With the recent indictment of five Platinum Jet executives for illegal Part 135 operations, the stakes for operating without a Part 135 certificate just got a lot higher. In addition to the threat of FAA certificate revocations or suspensions and hefty civil penalties (for instance $10 million for TAG Aviation) the specter of significant jail terms looms. Two executives have pled guilty and are likely to see the inside of a prison.
Many aircraft owners don't fully realize that there is an entirely different set of regulations that govern the operation of aircraft for hire. It's called FAR Part 135, and it explains what is required of an air taxi operator, including the qualifications of the pilots who fly charter airplanes, and the level of aircraft maintenance that is required when the airplane is offered to paying passengers.
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