Avinode to Acquire CharterX - BENEFIT?
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Avinode to Acquire CharterX - BENEFIT?
So I am more connected to the Broker....hmmmm. What do you think?
Avinode AB and CharterX Corp have signed a definitive agreement to merge their operations.
Under the terms of the agreement, Avinode will purchase all outstanding shares of CharterX. According to Niklas Berg, Chief Executive Officer of Avinode, the merger will benefit private aviation professionals by offering a single comprehensive source of charter information worldwide. “Now instead of having to consult two sources and two marketplace platforms, users will save time and resources by only having to consult one.”
Berg says the two companies have been in talks for about six months and discovered during that time that they share a common vision for air charter: to offer one global platform for buyers and sellers and provide the tools to assist communication and transactions, making the charter industry more efficient as a result.
With this acquisition, CharterX becomes a wholly-owned subsidiary of Avinode. When the deal closes, the Avinode and CharterX brands will remain independent in the foreseeable future as the teams work to consolidate the technical platforms. Work on merging the two platforms will start immediately. Wyvern, the wholly-owned subsidiary of CharterX which provides aviation safety information, will continue as an independent operation. Closing is expected in several weeks.
Avinode serves the global air charter industry as a B2B platform for buying and selling charter flights. Over 4000 aviation professionals use Avinode daily to charter flights worldwide. 80% of available business aircraft in the European market use the brand. Avinode’s marketplace currently lists over 3000 aircraft with online quoting, availability reports, empty leg postings and picture galleries. The company is headquartered in Gothenburg, Sweden and its wholly-owned subsidiary, Avinode Inc., is located in Miami, Florida, USA.
Trenton, NJ-based CharterX provides technology, online marketing, distribution and data services for the air charter industry.
Avinode AB and CharterX Corp have signed a definitive agreement to merge their operations.
Under the terms of the agreement, Avinode will purchase all outstanding shares of CharterX. According to Niklas Berg, Chief Executive Officer of Avinode, the merger will benefit private aviation professionals by offering a single comprehensive source of charter information worldwide. “Now instead of having to consult two sources and two marketplace platforms, users will save time and resources by only having to consult one.”
Berg says the two companies have been in talks for about six months and discovered during that time that they share a common vision for air charter: to offer one global platform for buyers and sellers and provide the tools to assist communication and transactions, making the charter industry more efficient as a result.
With this acquisition, CharterX becomes a wholly-owned subsidiary of Avinode. When the deal closes, the Avinode and CharterX brands will remain independent in the foreseeable future as the teams work to consolidate the technical platforms. Work on merging the two platforms will start immediately. Wyvern, the wholly-owned subsidiary of CharterX which provides aviation safety information, will continue as an independent operation. Closing is expected in several weeks.
Avinode serves the global air charter industry as a B2B platform for buying and selling charter flights. Over 4000 aviation professionals use Avinode daily to charter flights worldwide. 80% of available business aircraft in the European market use the brand. Avinode’s marketplace currently lists over 3000 aircraft with online quoting, availability reports, empty leg postings and picture galleries. The company is headquartered in Gothenburg, Sweden and its wholly-owned subsidiary, Avinode Inc., is located in Miami, Florida, USA.
Trenton, NJ-based CharterX provides technology, online marketing, distribution and data services for the air charter industry.
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This will make Avinode a true worldwide monopolist on the charter market place. It brings some positives because everything will be in one place. On the other hand though, having a monopolist is not really the most desired situation for the clients and I seriously doubt whether the fees at Avinode/CharterX can go down - I suppose they will be increased very soon which especially for small operators/brokers can be a big hit.
I wonder how are they going to merge the platforms. Will they create a new website or stay with 2 separated and only update them with datas?
I wonder how are they going to merge the platforms. Will they create a new website or stay with 2 separated and only update them with datas?
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Online Private Jet Booking Platforms
Avinode and CharterX are business to buisness online private jet booking platforms; primarily connecting brokers to aircraft operators. Both platforms are subscription based ie brokers pay an annual fee to be able to requests quotes; and aircraft operators pay an annual fee per aircraft to able to quote for charters requested by brokers.
This merger is fantastic news for aircraft operators, who will now be able market themselves to brokers through one network. Likewise for brokers, having one source for accessing aircraft inventory is both cost and time saving.
This news also supports PrivateFly.com and our strategy to offer an online marketplace to the end customer as an alternative to using the services of a traditional broker.
Whilst not competing with Avinode, PrivateFly offers aircraft operators a free marketing channel to find new customers and promote their aircraft.
Congratulations to Avinode and CharterX.
This merger is fantastic news for aircraft operators, who will now be able market themselves to brokers through one network. Likewise for brokers, having one source for accessing aircraft inventory is both cost and time saving.
This news also supports PrivateFly.com and our strategy to offer an online marketplace to the end customer as an alternative to using the services of a traditional broker.
Whilst not competing with Avinode, PrivateFly offers aircraft operators a free marketing channel to find new customers and promote their aircraft.
Congratulations to Avinode and CharterX.
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Well, I would be far more careful in saying that it is a great news for aircraft operators. As I mentioned previously, having everything in one place is only one side of the coin - while on the other we have monopoly and all the problems resulting from it.
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The Charter Market
Regarding killing the broker.....
The global charter market has about 3 million flights anually and is worth £20 Billion (thanks Phil!). There is plenty of room for many types of fixers, brokers, online portals & platforms. The important issue is that as our sector is unregulated, we must offer the end customer and aircraft operators a proffesional service.
Most private jet customers want a personal and dedicated offline service and that is exactly what the traditional broker offers.
The global charter market has about 3 million flights anually and is worth £20 Billion (thanks Phil!). There is plenty of room for many types of fixers, brokers, online portals & platforms. The important issue is that as our sector is unregulated, we must offer the end customer and aircraft operators a proffesional service.
Most private jet customers want a personal and dedicated offline service and that is exactly what the traditional broker offers.
Last edited by PrivateFly; 19th Mar 2010 at 13:45.
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Privatefly
£20m ? Averaging £6 and a bit each? I think you may have your maths a bit wrong there.
I don't think this sort of B2C portal is any more than an enquiry taker - if you try and "transaction handle" a qualitative product where the is huge divergence in values and quality it won't work without human interaction - which means it costs as much as a human broker with the added cost of someone to replace an already working conduit in the form of email.
It's nearly 10 years since the first attempt of this sort of thing appeared from the guys at IAC, and since we have been pitched by dozens. The only one that has had any success is Avinode, because selling charters requires expert human interaction.
But hey! What do I know
£20m ? Averaging £6 and a bit each? I think you may have your maths a bit wrong there.
I don't think this sort of B2C portal is any more than an enquiry taker - if you try and "transaction handle" a qualitative product where the is huge divergence in values and quality it won't work without human interaction - which means it costs as much as a human broker with the added cost of someone to replace an already working conduit in the form of email.
It's nearly 10 years since the first attempt of this sort of thing appeared from the guys at IAC, and since we have been pitched by dozens. The only one that has had any success is Avinode, because selling charters requires expert human interaction.
But hey! What do I know
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Hi Phil,
I fully agree with you. There are not many private jet charters that can be handled fully online and achieve a satisfactory level of customer service. PrivateFly.com is a hybrid business model; we combine the efficiency of an online business with a 24/7 offline service. Our clients use PrivateFly's online services as much or as little as they like. Many of our registered aircraft operators are referring to PrivateFly as being a free online marketing channel. We champion the smaller aircraft companies who offer a fantastic product (safety + aircraft + customer care) but do not have the same online marketing spend as the likes of NetJets.....anyway enough about PrivateFly, this thread is about Avinode and CharterX!
I fully agree with you. There are not many private jet charters that can be handled fully online and achieve a satisfactory level of customer service. PrivateFly.com is a hybrid business model; we combine the efficiency of an online business with a 24/7 offline service. Our clients use PrivateFly's online services as much or as little as they like. Many of our registered aircraft operators are referring to PrivateFly as being a free online marketing channel. We champion the smaller aircraft companies who offer a fantastic product (safety + aircraft + customer care) but do not have the same online marketing spend as the likes of NetJets.....anyway enough about PrivateFly, this thread is about Avinode and CharterX!
PrivateFly
......or we could make the thread about your spelling!
I hope your invoices and T&Cs have been 'proof-read'...were you in long enough to do ISS?
Surely there is an 'App' for that sort of thing?
......or we could make the thread about your spelling!
I hope your invoices and T&Cs have been 'proof-read'...were you in long enough to do ISS?
Surely there is an 'App' for that sort of thing?
Last edited by EESDL; 22nd Mar 2010 at 20:05. Reason: to make doubly doubly sure that there were no spelling mistakes.........
