Quotes
VLJ Comparison
VLJ Twins:
Model Construction Pax Cruise Range Price
A700 Carbon Fibre 7 340kt 1100nm $2.25m
Eclipse 500 Aluminium 4 370kt 1125nm $2.15m
HondaJet Composite 5 420kt 1180knm $3.65m
Mustang Aluminium 4 340kt 1150nm $2.53m
Phenom100 Aluminium 4 360kt 1160nm $2.85m
Einar Arnarsson, CEO, AccelJet - VLJ-Europe, Barcelona 2008
Reliability Control Programmes
A good Reliability Control Programme (RCP) is vital to maintain:
High quality transporation services with maximum profit
High quality maintenance with minimum costs
Reliable and safe operations
Adequate return on investments
Amrish Pathack, Aerospace International Services - VLJ-Europe, Barcelona 2008
Typical VLJ pilot
A typical VLJ pilot has an average of 2,695 turbine hours; 71% previuosly type rated; 90% previously owned aircraft and an average age of 47
Ed Smith, Senior VP, GAMA - VLJ-Europe 2008, Barcelona
European VLJ airfields
260 additional European airfields could be commercial VLJ capable
High density business aviation markets are France, UK, Germany, Italy and Spain
Robert Appleton, Europraxis -ALG Consulting - VLJ-Europe, Barcelona, 2008
VLJ Drivers
Encompasses a new air transportation business model
Enables GA jet trips on demand, direct and point to point
Affordable and cost effective for a larger user population
Flexible routing
Closer A/P to final destination
Ricardo Pradella, CEO Aerlyper - VLJ-Europe, Barcelona 2008
The 4 "P's" for the Air Taxi marketplace
Planes: we have seen examples in delays of aircraft and these should be factored into any business model with a "run lean, run light" philosophy prior to operational launch
Permission: do not assume quick regulatory and landing slot permissions at desired European airports - build in extra time hoping for the best but expecting the worst
Pilots: Even though pilot retention is an issue, thus far no companies have reported a genuine shortage
Passengers: The most important element of successful operations remains commiteed passengers, ready to fly
Joe Leader, President, ATXA - VLJ-Europe, Barcelona 2008
Impact of VLJs
Current Eurocontrol estimates are that approximately 300 more movements/day/year due to VLJs can be expected in the 2008-2015 period. According to EPATS, the demand from passenger side is actually much higher than the predicted number.
Alex Hendriks, Deputy Director, ATM Strategies, Eurocontrol - VLJ-Europe, Barcelona 2008
General Aviation
General Aviation describes a blend of utility aviation, medevac, aerial works, postal, pleasure flying and .... business aviation
Basel Arrar, Chairman & CEO, Royal Wings - GAME 2008, Dubai
The Grand Vision
Long established as the aviation, tourism and business hub of the Middle East, Dubai is emerging as a global centre for aviation, logistics and aerospace industries. The grand vision of Dubai as the global connecting point is coming to life in the form of an airport city that boasts the world's largest airport for passenger and cargo operations.
HH Sheikh Ahmed Bin Saeed Al Maktoum, President of DCAA and Chairman of Dubai Airports - Opening address to delegates attending GAME 2008, Dubai
2007-2016 Forecast
55% of units delivered during this period will be in the mid-light, light and very light jet category but this represents only 20% of orders in value terms
Mohamed Abubaker Farea, Executive Director - Istithmar World Aviation, GAME 2008, Dubai
For all those budding air taxi operators
"A recession is when you have to tighten your belt; depression is when you have no belt to tighten. When you have lost your trousers - you're in the airline business"
Sir Adam Thompson, Founder, Chairman, British Caledonian - industry quote
General comments from delegates at IATC 2008
Dr Bruce Holmes was exceptional - a vision of the future - terrific!
A real insight into the how the operators - US and Europe - set up. My only complaint is I didn't win the champagne
A couple of the speakers wandered off the topic but for the mostpart clear, concise presentations and a well presented event
Apart from a few glitches with the sound I thought this was an excellent show. Thoughful presentations and a good facility. Well done
Good mix. Here and there a few overlapping topics but other than that, an overall good convention
I would have liked some more on the regional airports but then again I'm biased - I come from a regional airport. Really interesting to meet so many operators in one room
Good operator interaction, great facility
Next time, I suggest fewer speakers, good event though
You did well to get so many industry gurus there. Great idea to have a dedicated air taxi event
Various comments from the evaluation forms passed back to MIU at the end of IATC 2008
VLJs less polluting than conventional aircraft
VLJ operations in the troposphere produce relatively reduced effects from NOx, water vapour and contrail-induced cloud formation, than result from stratospheric flight operations.
Bruce Holmes, Chief Strategist, NextGen Systems, DayJet - IATC 2008
Customer confirmation
When we talk about offering air taxi service to customers, we are usually focusing on the flight and not much else. However, in true "Point-to-Point" travel, we need to consider the experience in the plane as well as how the customer gets to and from the airport.
Steven Fisher, Slipstream - IATC 2008
Business aircraft increase efficiency
EBAA sponsored study in mid 1990s by London Business School showed that companies with business aircraft performed 11% better than average. Similar US studies of almost 800 companies showed that those using business aircraft performed more than 8% above average
Eric Mandemaker, CEO, European Business Aviation Association - IATC 2008
Its the customer stupid!
Technology and Operations are important ................. Customer centricity is key.
Arie-Willem Van Doorne, Chief Operating Officer, Bikkair - IATC 2008
US Domestic set up
The airlines do not provide service to 75% of US domestic markets due to aircraft economics which requires market size > 25 passengers per day each way. Current trend - airlines and regionals are moving toward larger aircraft to reduce costs, resulting in less frequent schedules. Regionals are feeding the mainline carriers, resulting in fewer non-stop flights.
Dean Rotchin, CEO, Earthjet - IATC 2008
Reduce noise pollution
The Eclipse 500 is the quietest jet in history, and is even quieter than most single engine piston aircraft.
Mike McConnell, Vice President, Sales and Marketing, Eclipse Aviation - IACT 2008
European Business Aviation
Business aviation rarely flies the same route twice. Nearly all business airport pairs are flown less than once a week. For scheduled traffic there are as many airport pairs flown ten times/week as once/week
Dr Matthijs de Haan, Managing Director, ETIRC Aviation - IATC 2008
Private Aviation Market Growth
2009-2015: VLJ forecast increase 200 to 1000 flights per day (Eurocontrol): - GA is fastest expanding air transport sector apart from low-cost scheduled airlines (Eurocontrol & EBAA): - 2007 - Business Aviation in Europe expanded by 10% in 2007 compared to average growth of 5.3% across all sectors (Eurocontrol): - 2007 - business aircraft 7.5% of all European air traffic movements in 2007 - 6.9% in 2006 (EBAA)
Stefan Vilner, CEO, JetBird - IATC2008
Air Taxis
I'd categorise air taxis as Business Jets down, Business class up.
Peter Leiman, Managing Director, Blink - IATC 2008
Potential for VLJ market share
The air travel market is worth $135 Billion. Potentially, $30 Billion's worth of travellers could be serviced by the VLJ/Air Taxis.
Andrew Locke, Director of Business Operations & Strategy, Linear Air - IATC 2008
Propensity for air travel
Latin American economies are in a region where small increases in GDP translate into a much higher increase in passengers flying
Respicio A Espirito Santo Jr, President, Brazilian Institute of Strategic Studies and Public Policies in Air Transport - Rio de Janiero, VLJ-LAC 2007
Brazilian Aviation Taxes
Airlines pay zero in taxes when buying aircraft, depending on the structure of the operation. A private individual acquiring a glider will pay up to 41.6% in taxes. The continuity of the present tax structure may create sizeable barriers to the development of the VLJ market.
Adalberto Febeliano, Eexecutive Vice President, ABAG (Brazilian Association of General Aviation) - VLJ-LAC 2007
Middle East Market
More than 1500 commercial aircraft in service or on order with around 160 operators in a wide variety of roles. 2006 profits of $630 million on revenues of $20.6 billion which themselves were up 22% over 2005
Andy Whelan, BAE Systems Regional Aircraft - FAME 2007
Encourage travellers into the air
Part of our strategy is to encourage switch from surface transport to air. Despite the vast distances involved most domestic leisure travel is by car/bus
Andrew Cowen, CEO, Sama - FAME 2007
Commercial Aviation in a nutshell
2 OEMs serve 100% of the market, 2 leasing companies serve 45% of the market, 1500 airlines compete globally, 600 MROs compete across the board, 2 Catering companies serve 40% of the market
Suheil Mahayni, General Manager Gulf, Lufthansa Technik AG - FAME 2007
Bankrupt fleets
Close to 100% of all aircraft that were flying for the 20 some airlines that have gone bankrupt since 2001 (Swissair, Sabena, Ansett) continue to fly today and their new operators are paying to fly them
Christian McCormick, Natixis Transport Finance - FAME 2007
Delivering the VLJ
Half the challenge is designing an airplane, but the other half is building a line that can manufacture them at a consistent quality level.
Ed Iacobucci, President/CEO, DayJet - industry quote
Short haul business
In short haul there is no positive perception of value for money. The attributes that the potential user is looking for belong to the air taxi profile, but it's considered too expensive.
Javier Diez Cardona, CEO, Wondair, Vienna, VLJ-Europe 2007
Size matters!
We've done a survey of our pilots on the VLJ - detailing the technology, the sophisticated avionics and the fact that it's just about the most pleasing aircraft you can possibly fly. What response do we get back - is it bigger than the aircraft I fly now!
Patrick JG Margetson-Rushmore, CEO, LEA (London Executive Aviation), Vienna, VLJ - Europe, 2007
Air Taxis and the VLJ
The Air Taxi Association (ATXA) is leading the revolution in personal air travel at business airline prices. Backed by leading air taxi companies, the Air Taxi Association’s mission is to speed the adoption of the air taxi model so that more businesses, individuals, and communities of all sizes can enjoy the benefits of direct, on-demand flights.
Joe Leader, President, Air Taxi Association, Vienna, VLJ-Europe 2007
Opportunities for the VLJ sector
Air transport Industry expanding at a rate of 2.4 times GDP
European air travel market will continue to grow with EU enlargement
Business travel offers poor value for money
47% of business travellers travel more, year on year
Dr Ali Baghdadi, President and CEO, GoNow, Vienna, VLJ-Europe 2007
Exchanges from the floor at VLJ Dubai
"It's not so much a question of whether the VLJ is ready for Dubai, as whether Dubai is ready for the VLJ"
Tahir Khan, Eastern Skyjets
"We expect to be delivering 1,000 aircraft per annum"
Matt Brown, Eclipse Aviation
"I think that's optimistic"
George Galanopoulos, London Executive Aviation
"It's the owner/pilot graduating to a VLJ, we're worried about"
Lou Sorrentino, SH&E
"It's a bit like having a Ferrari in Dubai, great car, great performance, but not much use if you're stuck in traffic. It's the same with the VLJ - Great idea but if you're stuck in the bottleneck/security at Dubai airport there's no real advantage"
Falcon Aviation
"I don't like to train ex-military pilots in type conversion - they all, mentally, think they've got an ejector seat"
Stefano Sturlese, Spectrum Aviation
"That's not true"
Ex-Military pilot, Capt Mustafa Aksu
VLJ forecasts
More than 7.7 million trips would be made using air taxi services in 2017
·Based on the FAA forecast, users of VLJ-based air taxi services will save over 35 million hours of travel time, valued at over $1.8 billion.
Matt Brown, Director - Product Marketing, Eclipse Aviation - Speaking at VLJ's Dubai, 23/24 April, 2007
Affordable air taxis
The way forward for the mass market, but particularly the business traveller, is the provision of affordable and conveniently located air taxis.
George Galanopoulos, Managing Director, London Executive Aviation, speaking at VLJ's Dubai, 23/24 April, 2007
The air charter sector
....Europe has a thriving and competitive charter industry, based around light and medium sized aircraft. There are approximately 600 aircraft in Europe available for charter and annual revenues are in the region of US$1.4 billion (Euros 1 billion). Like the US this is made up of similar sectors equating to air-taxi, air charter and joint ownership....South America, in particularl, Brazil is also a significant market for both air-taxi and air charter flights.
The VLJ market, 2007 -2016, Philip Butterworth-Hayes, PMI Media ltd.
Contact MIU Events or the author directly for access to the full study
Lose money in style!
"The air taxi business, like the charter and airline business, is fundamentally a wealth-destroying business. VLJ's simply will make it more fun and exciting to lose money. And let's not forget about the bragging rights." Vaughn Cordle, CFA, CEO and chief analyst, Airline Forecasts, LLC
