PPRuNe Forums - View Single Post - JetBird moves closer to air taxi launch
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Old 23rd Sep 2009, 09:01
  #67 (permalink)  
His dudeness
 
Join Date: Mar 2004
Location: schermoney and left front seat
Age: 57
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backers are no fools and dont throw cash away forever......deep pockets may be, but they always have a bottom....
Well, I have seen so many people loose money in executive aviation that I´m not sure that I´d underwrite your statement. I admit that my experience is limited to one or two aircraft owners that got into honeytraps laid out by also smallish operators. Still I have to come across the man that has made a real fortune in OPERATIONS. You can earn money, even relatively good money, but there is a lot of risk and very hard work involved - and then there are the muppets coming up every few years that think they can reinvent the wheel, that put strain on the markets and are aggressive like hell until the first engine overhauls or the like.

If one compares the investment and the return on it, its clear that you need to be an enthusiast to buy an airplane or that you simply want to keep the costs down by renting out. Making real money is possible in the upturn years, when everyone gets crazy and pays whatever to get an airplane - like the years we had fueled mainly by the russians. The moment of truth however comes in the tricky business enviroment of a slowdown or crisis. As we see and hear even a company like Netjets, that started long ago in a way more aviationfriendly enviroment and is backed by of the richest companies on this planet with its excellent connections directly to clients struggles (other investment connections) and faces losses (again, after being profitable only for a short period[in Europe])

Even if JB has the necessary backing for a long time (which it has not IMO - 'plan to be profitable in 2011') I don´t see where the return on investment should be attractive for 'backers'

Sure hope they prove me wrong....
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