Quotes from MIU past events.

 

Crushed expectations

The industry expectation several years ago that VLJs would bring low cost business aviation has not happened....the reality is that while operating VLJs costs less than operating larger business jets, it is by no means cheap.

Patrick Margetson Rushmore, London Executive Aviation - VLJ Europe, Oxford, 2009

VLJ in the finance world

VLJ tends to be a dirty word with the finance and insurance sector.

Aoife O'Sullivan, Gates and Partners - VLJ Europe, Oxford, 2009

Why bizav?

In our research we found that people were not looking for luxury, it was efficiency and opportunity for doing business, the elusive quality of time. That was the fundamental reason for using private aviation.

Stefan Vilner, JetBird - VLJ Europe, Oxford, 2009

Vision of 2030

In 2030 there will be more demand than capacity, with demand reaching 80,000 daily movements. 1 flight in 2 departs, arrives (or both) an airport with no spare capacity.

Alex Hendricks, Eurocontrol - VLJ Europe, Oxford, 2009

Key factor when choosing aircraft

Disadvantage is absence of real toilet on C510, some of the client prefer another small aircraft like Citation Jet due to that and overlook the facts as age, state of the art equipment and price.

Dagmar Grossmann, Grossmann Jet Service - VLJ Europe, Oxford, 2009

Boeing and Airbus forecasts

Boeing forecasts China's fleet will expand to over 4,560 units and by 2027 more than quadruple in size. The domestic market will surge five-fold in that same time period.

Airbus says that China's mainland needs more than 3000 passenger aircraft and freighters from 2007 to 2027 amid the nation's strong economic growth and booming demand for air travel.

Dewey Yee, China Everbright Aerospace - FAME, Abu Dhabi, 2009

Do not!

Do not rely on statistics.

Ian Crowe, Willis - FAME, Abu Dhabi, 2009

Residual Value

The larger the fleet and especially the broader the operator base, the better the opportunities for remarketing.

Soeren Ferre, AerCap - FAME, Abu Dhabi, 2009

Crisis = Opportunity

Crisis means feedstock on reasonable prices.

Wolfgang Schmid, EADS EFW - FAME, Abu Dhabi, 2009

Air Taxi model keys to success

One of Air Taxi model keys to success - establish bases in high traffic areas to access existing travel demand, to support transportation (i.e. car services) critical to ensuring complete travel needs are met.

Bill Herp, Linear Air - VLJ-LAC, Miami, 2008

Paved airports worldwide

Paved Airports per million km2:

Latin America - 88
EU - 467
EUA - 561

Clint Clouatre, Embraer - VLJ-LAC, Miami, 2008

Crisis management

Company personnel SHOULD NOT MAKE ANY COMMENT regarding probable cause of an accident.

Jarrett Wolf, Ferrell Law - VLJ-LAC, Miami, 2008

Tipping Point in LAC

To reach the tipping point, we need to build upon successes across the marketplace to illustrate that the opportunity stretches far beyond the typical air charter marketplace.

Joe Leader, Air Taxi Association - VLJ-LAC, Miami, 2008

Three Networks vs. One Large Network

Three fleets of 11 aircraft each	One coordinated fleet of 33 aircraft
60 flights per day	70 flights per day
52% efficiency	72 % efficiency
78,084 revenue miles	85,097 revenue miles
37,221 non-revenue miles	23,666 non-revenue miles

 

 

 

 

 

Richard Kane, Coastal Technologies - VLJ-LAC, Miami, 2008

VLJs aren't cheap

"The industry expectation several years ago that VLJs would bring low cost business aviation has not happened....the reality is that while operating VLJs costs less than operating larger business jets, it is by no means cheap" - Patrick Margetson Rushmore, CEO, London Executive Aviation, speaking at MIU's September VLJ-Europe 2009 conference at London Oxford Airport.

 

Dirty word

"VLJ tends to be a dirty word with the finance and insurance sector" - Aoife O'Sullivan, Partner, Gates and Partners, speaking at MIU's September VLJ-Europe 2009 conference.

 

It's time management

"In our research we found that people were not looking for luxury, it was efficiency and opportunity for doing business.....the elusive quality of time....that was the fundamental reason for using private aviation" - Stefan Vilner, CEO, JetBird speaking at MIU's September VLJ-Europe 2009 conference.

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    $3.9m

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

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