Revolution is tough without that disruptive nugget. Not having that nugget has led Surfair to retreat into the conventional operation of what could have been a novel membership based system. I’ve followed them since their birth since I’m no stranger to the concept of moving Pilatus PC-12s around with people in them whilst attempting to make money. What was great about Surfair, is that they validated our own Grabajet aspirations that I had designed with my business partner.
One of the curses of private aviation start ups (the great air taxi revolution!) is the obvious – not enough utilization, not enough income and giant killer overhead. The dynamic between revenue and utilization is the simple reality that when both go up the fixed costs are less per flight, per hour, per passenger, etc. While this may be airplane economics 101 the landscape is littered with brave and smart people with vision who, in the words of someone in 2005, wanted to “darken the skies” with Eclipses. As we know, that didn’t happen, in large part because Dayjet, despite having the best minds and resources, didn’t happen. Continue reading Rethinking Revenue