Friday, September 21, 2007
AVWEB'S FRIDAY PODCAST:
The age of the very light jet (and the version of the air taxi business it has spawned) is upon us, and it's now time to find out if the bold predictions of some of the players will come true. Phillip Butterworth-Hayes is an analyst with PMI Media, a British and German firm that studies the aviation market, and he's released his second report on VLJs just in time for the National Business Aviation Association (NBAA) Convention in Atlanta next week. AVweb's Russ Niles talked with Butterworth-Hayes about the report and where the VLJ sector is heading...
Wednesday, September 19, 2007
On-demand Air Taxis and Very Light Jets Predicted to Expand Air Travel Market According to Research 2.0 Report
Press Release
Source: Research 2.0
Wednesday September 19, 11:30 am ET
Low-cost, High-performance Jets to Greatly Expand Use of Municipal Airports; Offer Relief to Overburdened National Airspace System
BOSTON--(BUSINESS WIRE)--Research 2.0, a research firm that specializes in the analysis of emerging technology for the investment and business communities, today revealed findings from its new report focused on the impact of very light jets (VLJ) and on-demand VLJ air taxi services.
The report covers the growth of the VLJ services market, the predicted expansion of the Small Aircraft Transportation System (SATS) to local communities nationwide and the NASA-inspired technology that is enabling a potential seismic paradigm shift in air travel. The report also covers VLJ manufacturers, competition, manufacturing, regulatory, environmental and other issues specific to this new emerging market.
Summary of September 2007 Report Findings
VLJ Air Taxis Predicted to Relieve Overburdened Commercial Industry
Commercial airline traffic is predicted to see sustained annual growth over the next two decades, pressuring a lagging air traffic control infrastructure. VLJ air taxi services and increased utilization of hundreds of idle secondary landing facilities can substantially alleviate this pressure.
New Technologies Enable Small Aircraft Transportation System to Dramatically Expand
The Research 2.0 report affirms that only 660 of the approximately 5,400 public use landing facilities are used for scheduled air carrier flights as part of the standard commercial hub-and-spoke network system. Most of the other 4,800 facilities are utilized substantially below capacity. According to NASA, 93% of the U.S. population lives within a 30-minute drive of a SATS-type airport, while only 22% reside within the same distance of a major or hub airport. A NASA-sponsored five-year public private sector research project has shown that enabling technologies can support SATS's mission of providing a "safe travel alternative, freeing people and products from existing transportation system delays by creating access to more communities in less time."
Very Light Jets Offer Unique Advantages Over Existing Air Travel Options
The principal technological breakthrough behind the VLJ is a newly developed small, compact, lightweight jet engine with sufficient thrust force to propel the aircraft. VLJs are defined by several general specification factors, including a maximum passenger plus pilot capacity of seven, a maximum take-off weight below 10,000 pounds, acquisition cost of $1.2 million to $3.7 million and the performance capability to operate on runways approximately 3,000 feet long. Their maximum flight range is usually around 1,700 nautical miles. Fuel and maintenance direct operating costs for VLJs average $0.70 to $1.50 per mile. The report finds that VLJ manufacturers include a mix of new entry start-ups and traditional aerospace industry names. Forecasts for VLJ unit sales over the next decade vary considerably from 2,500 to a high of 8,000 or market sales of $6 billion to $20 billion.
Air Taxi Market Predicted to Create New Demand with Fresh Value Proposition
According to Research 2.0's analysis, with the emergence of VLJ air taxi operators, true on-demand personal air transportation can become economically feasible on a broad scale. These services will drive growth of the air taxi market, which historically has been more like the charter model. On-demand air taxi services, like traditional automobile taxis, provide one-way point-to-point personal transportation immediately upon request. These aircrafts operate between landing facilities or near traveler destination locations, thus delivering value and flexibility not possible with the traditional (scheduled) airlines.
The report finds that the market size for these services is an estimated $2 billion to $7 billion annually. Most new technology air taxi services are start-up operations financed through private equity sources and founded by individuals well known for previous leadership roles in IT, traditional air transportation, aerospace and finance.
"According to our research, on-demand taxi services and VLJs will create a new dynamic within the existing air travel industry," said Kris Tuttle, founder and senior analyst of Research 2.0. "For example, if 10% of travelers that use major metropolitan airports on a given day shift to more conveniently accessed small airports served by on-demand air taxis, the impact would be extraordinary. Beyond the airline industry, the ripple effects would inexorably alter regional economies by redefining overall travel related supply and demand patterns. These trends would likely usher in new economic development opportunities, particularly for those local areas closest to regional airports. The speed and magnitude of this prospective change will depend upon the ability of players in this personal air transportation sector to discern creative, compelling business models that clearly offer maximum quality, efficiency and customer responsiveness."
The On-Demand Air Travel report is available to Research 2.0 subscribers and via other outlets. For more information, visit www.research2zero.com.
Source: Research 2.0
Wednesday September 19, 11:30 am ET
Low-cost, High-performance Jets to Greatly Expand Use of Municipal Airports; Offer Relief to Overburdened National Airspace System
BOSTON--(BUSINESS WIRE)--Research 2.0, a research firm that specializes in the analysis of emerging technology for the investment and business communities, today revealed findings from its new report focused on the impact of very light jets (VLJ) and on-demand VLJ air taxi services.
The report covers the growth of the VLJ services market, the predicted expansion of the Small Aircraft Transportation System (SATS) to local communities nationwide and the NASA-inspired technology that is enabling a potential seismic paradigm shift in air travel. The report also covers VLJ manufacturers, competition, manufacturing, regulatory, environmental and other issues specific to this new emerging market.
Summary of September 2007 Report Findings
VLJ Air Taxis Predicted to Relieve Overburdened Commercial Industry
Commercial airline traffic is predicted to see sustained annual growth over the next two decades, pressuring a lagging air traffic control infrastructure. VLJ air taxi services and increased utilization of hundreds of idle secondary landing facilities can substantially alleviate this pressure.
New Technologies Enable Small Aircraft Transportation System to Dramatically Expand
The Research 2.0 report affirms that only 660 of the approximately 5,400 public use landing facilities are used for scheduled air carrier flights as part of the standard commercial hub-and-spoke network system. Most of the other 4,800 facilities are utilized substantially below capacity. According to NASA, 93% of the U.S. population lives within a 30-minute drive of a SATS-type airport, while only 22% reside within the same distance of a major or hub airport. A NASA-sponsored five-year public private sector research project has shown that enabling technologies can support SATS's mission of providing a "safe travel alternative, freeing people and products from existing transportation system delays by creating access to more communities in less time."
Very Light Jets Offer Unique Advantages Over Existing Air Travel Options
The principal technological breakthrough behind the VLJ is a newly developed small, compact, lightweight jet engine with sufficient thrust force to propel the aircraft. VLJs are defined by several general specification factors, including a maximum passenger plus pilot capacity of seven, a maximum take-off weight below 10,000 pounds, acquisition cost of $1.2 million to $3.7 million and the performance capability to operate on runways approximately 3,000 feet long. Their maximum flight range is usually around 1,700 nautical miles. Fuel and maintenance direct operating costs for VLJs average $0.70 to $1.50 per mile. The report finds that VLJ manufacturers include a mix of new entry start-ups and traditional aerospace industry names. Forecasts for VLJ unit sales over the next decade vary considerably from 2,500 to a high of 8,000 or market sales of $6 billion to $20 billion.
Air Taxi Market Predicted to Create New Demand with Fresh Value Proposition
According to Research 2.0's analysis, with the emergence of VLJ air taxi operators, true on-demand personal air transportation can become economically feasible on a broad scale. These services will drive growth of the air taxi market, which historically has been more like the charter model. On-demand air taxi services, like traditional automobile taxis, provide one-way point-to-point personal transportation immediately upon request. These aircrafts operate between landing facilities or near traveler destination locations, thus delivering value and flexibility not possible with the traditional (scheduled) airlines.
The report finds that the market size for these services is an estimated $2 billion to $7 billion annually. Most new technology air taxi services are start-up operations financed through private equity sources and founded by individuals well known for previous leadership roles in IT, traditional air transportation, aerospace and finance.
"According to our research, on-demand taxi services and VLJs will create a new dynamic within the existing air travel industry," said Kris Tuttle, founder and senior analyst of Research 2.0. "For example, if 10% of travelers that use major metropolitan airports on a given day shift to more conveniently accessed small airports served by on-demand air taxis, the impact would be extraordinary. Beyond the airline industry, the ripple effects would inexorably alter regional economies by redefining overall travel related supply and demand patterns. These trends would likely usher in new economic development opportunities, particularly for those local areas closest to regional airports. The speed and magnitude of this prospective change will depend upon the ability of players in this personal air transportation sector to discern creative, compelling business models that clearly offer maximum quality, efficiency and customer responsiveness."
The On-Demand Air Travel report is available to Research 2.0 subscribers and via other outlets. For more information, visit www.research2zero.com.
Monday, September 17, 2007
VLJ Market Looking Brighter, According to Analyst
A European company that has studied the emerging very light jet market says it's painting a rosier outlook for the sector than it has in the past but there are more caveats than a law library in his assessment. Phillip Butterworth-Hayes, of PMI Media, told AVweb Sunday in a podcast interview to be released on Friday that interest in VLJs seems to be sustained and new market possibilities are opening up but (and there are several of them) the next 12 months will likely be the harbinger of things to come, especially in the air taxi business." A lot will depend on just how robust the aircraft are," Butterworth-Hayes, author of the report, said. He said they're going to be called upon to fly far more hours in more rugged conditions than business jets are normally flown and many are far less expensive than the low-end business jets.
He said the other significant factor will be the world economy. Traditionally, companies buy jets when times are good. He said all indicators point to a downturn and that will likely mean the red-hot market for jets will soften. Butterworth-Hayes maintains that the models most likely to fly out of the uncertainty and market saturation that's looming will come from companies that already build, certify and support fleets of jets.
He said the other significant factor will be the world economy. Traditionally, companies buy jets when times are good. He said all indicators point to a downturn and that will likely mean the red-hot market for jets will soften. Butterworth-Hayes maintains that the models most likely to fly out of the uncertainty and market saturation that's looming will come from companies that already build, certify and support fleets of jets.
Friday, September 14, 2007
Eclipse Aviation Opens Customer Training Center At AEG
Company Hopes To Have Four Full-Motion Sims In Place By End Of '08
Eclipse Aviation held a grand opening ceremony Thursday morning for its Customer Training Center, the company's first facility at Double Eagle II Airport (KAEG) in Albuquerque, NM.
Eclipse tells ANN it has committed to an extensive pilot training curriculum that will prepare customers for real world operations of their Eclipse 500s and says the new facility will help the company to deliver its training program.
Eclipse 500 customers will receive all of their classroom and simulator training in this building including the type rating course and recurrent training. The 41,500 square foot two-story facility will accommodate four simulators, four classrooms and eight briefing rooms.
The first Flight Training Device (FTD) has already been installed in the Center, and Eclipse says it will be used to train Eclipse 500 pilots shortly. An additional full motion simulator is expected to be certified and operational in the coming months, with the goal of four full motion simulators operational by the end of 2008.
Once the full complement of full motion sims is operational, Eclipse 500 pilot training will transition from the current in-aircraft training to full motion simulator training.
"Since arriving in Albuquerque seven years ago, we have always planned to grow at the Double Eagle II airport. This Customer Training Center is the first step in our commitment to create an Eclipse Aviation campus and help grow the city’s planned Aerospace Technology Park at this airport," said Vern Raburn, president and CEO of Eclipse Aviation. "This new facility also shows our dedication to providing our customers with the ultimate training experience. We have an excellent flight training program, and we are extremely excited to start training our customers using the flight training device and the full motion simulators in this new state-of-the-art facility."
The Center is located on 3.5 acres of Eclipse Aviation’s 150-acre tract, which borders the northern boundary of Albuquerque’s Aerospace Technology Park at Double Eagle II airport. In the coming weeks, training personnel will start moving their offices to the facility. The company plans to employ approximately 100 people at the Center when it is in full operation.
Eclipse Aviation held a grand opening ceremony Thursday morning for its Customer Training Center, the company's first facility at Double Eagle II Airport (KAEG) in Albuquerque, NM.
Eclipse tells ANN it has committed to an extensive pilot training curriculum that will prepare customers for real world operations of their Eclipse 500s and says the new facility will help the company to deliver its training program.
Eclipse 500 customers will receive all of their classroom and simulator training in this building including the type rating course and recurrent training. The 41,500 square foot two-story facility will accommodate four simulators, four classrooms and eight briefing rooms.
The first Flight Training Device (FTD) has already been installed in the Center, and Eclipse says it will be used to train Eclipse 500 pilots shortly. An additional full motion simulator is expected to be certified and operational in the coming months, with the goal of four full motion simulators operational by the end of 2008.
Once the full complement of full motion sims is operational, Eclipse 500 pilot training will transition from the current in-aircraft training to full motion simulator training.
"Since arriving in Albuquerque seven years ago, we have always planned to grow at the Double Eagle II airport. This Customer Training Center is the first step in our commitment to create an Eclipse Aviation campus and help grow the city’s planned Aerospace Technology Park at this airport," said Vern Raburn, president and CEO of Eclipse Aviation. "This new facility also shows our dedication to providing our customers with the ultimate training experience. We have an excellent flight training program, and we are extremely excited to start training our customers using the flight training device and the full motion simulators in this new state-of-the-art facility."
The Center is located on 3.5 acres of Eclipse Aviation’s 150-acre tract, which borders the northern boundary of Albuquerque’s Aerospace Technology Park at Double Eagle II airport. In the coming weeks, training personnel will start moving their offices to the facility. The company plans to employ approximately 100 people at the Center when it is in full operation.
Thursday, September 13, 2007
Pogo files IPO
Pogo Jet files for $103.5 million IPO
Thu Sep 13, 2007 3:36pm EDT
WASHINGTON, Sept 13 (Reuters) - Pogo Jet Inc. filed with regulators on Thursday to raise up to $103.5 million in an initial public offering of common stock.
The provider of private on-demand jet charter service said in a registration statement with the U.S. Securities and Exchange Commission that WR Hambrecht & Co. would underwrite the IPO.
Pogo Jet said it plans to list its stock on the Nasdaq under the symbol "POGO" (POGO.O: Quote, Profile, Research). (Reporting by Karey Wutkowski)
Thu Sep 13, 2007 3:36pm EDT
WASHINGTON, Sept 13 (Reuters) - Pogo Jet Inc. filed with regulators on Thursday to raise up to $103.5 million in an initial public offering of common stock.
The provider of private on-demand jet charter service said in a registration statement with the U.S. Securities and Exchange Commission that WR Hambrecht & Co. would underwrite the IPO.
Pogo Jet said it plans to list its stock on the Nasdaq under the symbol "POGO" (POGO.O: Quote, Profile, Research). (Reporting by Karey Wutkowski)
Thursday, September 6, 2007
Waypoint launches new website
Waypoint Corporation is entering the air taxi market with an innovative new service offering that will fundamentally change the nature of regional air travel. Waypoint will provide safe and affordable “point-to-point, on-demand, per-aircraft” regional travel using Very Light Jet (VLJ) aircraft, with pricing comparable to a full-fare airline coach ticket …and at half the cost of traditional charter. Visit www.FlyWaypoint.com or contact us at Info@FlyWaypoint.com for more information and investment opportunities.
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