DayJet bankrupt
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Join Date: Dec 1999
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DayJet bankrupt
Real pity - very much a pioneering business, and a driving force for VLJs.
Give it a day or so before moving to AA&R forum
DayJet calls it a night - TheDeal.com
Give it a day or so before moving to AA&R forum
DayJet calls it a night - TheDeal.com
IMO Dayjet (and to a lesser extent Eclipse) was never anything more than a hucksters concept waiting for the big payoff via an IPO. Then, take the money and run before the true and long term prospects of the business emerge.
Unfortunately for the principals involved (but fortunately for any would be stock purchasers), the sick economy caught up with them before the IPO could be launched.
A shame, however, for the employees involved.
Unfortunately for the principals involved (but fortunately for any would be stock purchasers), the sick economy caught up with them before the IPO could be launched.
A shame, however, for the employees involved.
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I am genuinely sad to hear that this has not worked out, of all the concepts this looked as if had the most credence, russian rocket scientists and all that.
Is this a timely lesson to those in Europe with big plans for a market that is already saturated?
Is this a timely lesson to those in Europe with big plans for a market that is already saturated?
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I never could understand how a two crew aircraft with total three pax seats, charging equivalent to biz class fares was ever going to work but I'm sad it didn't.
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Torque...you got that right...but then again...given the economy, it may not be the right time either..during the dot com thing, It probably would have made it a little while....as far as VLJs...just not holding my breath that the average millionaire is going to climb out of his C182 and start flying and Eclipse or Mustang to Europe for the weekend...call me crazy...
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"Is this a timely lesson to those in Europe with big plans for a market that is already saturated?"
Will it work? time will tell.....
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It seems odd that the term "application of low-cost models to bizjets" is used for these new companies, does that hold any water?
The fundamentals of Low cost operators were based around a lower cost model than the "National" carriers. But more fundamental was the yield management of more bums on seats, that is pretty irrelovent to the bizjet market unless you think that per seat pricing works (IMHO it does not in the EU). Are we not already fairly lean on overhead and smart on taking the "right" work to maximise yield? Are these the main fundamentals of the LowCo?
1. Fuller Aircraft
2. Less staff
3. Non-major airports (this didn't even work for the LowCo's)
4. Faster turnarounds.
I don't think these really have any relevance to the bizjet market. It seems to me that the new lowco bizjet operators are simply working on volume and utilisation targets that IMHO are unachievable with the types chosen. I know the market quite well and can't get a better than 450 hr utilisation on the mustang model even with some quite complex yield management pricing policy. The phenom does better, but you still have a fairly hefty hit to the balance sheet because they buck the trend of buying used aircraft and have the new equipment buyer eat the depreciation.
IMHO the capital is being ploughed into equipment rather than market share and expertise. If I had €100,000,000 to spend on the aviation market I would use it to buy an operator of like types in a few countries, de-fracture the light jet market and use it as a vehicle to expand organically into midsize and heavy jets, but hey! What do I know?
Anyone want to lend me €100,000,000. Already have AOC, maintenence and TRTO.
Phil
The fundamentals of Low cost operators were based around a lower cost model than the "National" carriers. But more fundamental was the yield management of more bums on seats, that is pretty irrelovent to the bizjet market unless you think that per seat pricing works (IMHO it does not in the EU). Are we not already fairly lean on overhead and smart on taking the "right" work to maximise yield? Are these the main fundamentals of the LowCo?
1. Fuller Aircraft
2. Less staff
3. Non-major airports (this didn't even work for the LowCo's)
4. Faster turnarounds.
I don't think these really have any relevance to the bizjet market. It seems to me that the new lowco bizjet operators are simply working on volume and utilisation targets that IMHO are unachievable with the types chosen. I know the market quite well and can't get a better than 450 hr utilisation on the mustang model even with some quite complex yield management pricing policy. The phenom does better, but you still have a fairly hefty hit to the balance sheet because they buck the trend of buying used aircraft and have the new equipment buyer eat the depreciation.
IMHO the capital is being ploughed into equipment rather than market share and expertise. If I had €100,000,000 to spend on the aviation market I would use it to buy an operator of like types in a few countries, de-fracture the light jet market and use it as a vehicle to expand organically into midsize and heavy jets, but hey! What do I know?
Anyone want to lend me €100,000,000. Already have AOC, maintenence and TRTO.
Phil
