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Try these links for more information about the coming
revolution in air travel.
Some good
information from Luis Sorrentino III, SH&E International Air
Transport Consultancy, about aircraft
comparisons, Single Pilot / Dual Pilot, Professional Pilot
/ Non-Professional Pilot. (Power Point slides)
VLJ expected
values and Residual values - a power point slide show by Eddy
Pianiazek - Ascend, a division of Airclaims. It is all
interesting but the last 3 slides show expected valuations of
VLJs. I find it interesting that Ascend expects the Mustang
and Eclipse to maintain better residual value than the
Phenom.
NBAA Training
Guidelines for Single Pilot
Operations of Very Light Jets and Technically Advanced
Aircraft.
View pages 181 to 195 of this
document about the Small Aircraft Transportation System
(SATS).
Highway In The Sky
Flight Safety Foundation article about VLJ's, July
2005:
http://www.ncat.com/ngats/index.html - Next Generation Air
Transportation System (NGATS) Institute -web site
www.jpdo.aero - Next Generation Air
Transportation System (NGATS) - Joint Planning &
Development Office (JPDO) - web site
NGATS Draft for future plans 7/24/06 -

NGATS Integrated plan 12/12/2004
The Boeing Company - Very Light Jets - Impact on NAS Operations
FAA General Aviation and Air Taxi Activity and
Avionics (GAATAA) Surveys: http://www.faa.gov/data_statistics/aviation_data_statistics/general_aviation/ This may help you find the best
locations for your air taxi operation.
The VLJs are
coming... Don Taylor, Mar 18, 2005
VLJs–What
Every Pilot Needs to Know - By Ron McElroy
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Market Analysis:

Charts
from: The Next NAS 2025
Demand Projections by: Michael J. Harrison, Aviation Management
Associates, Inc.
AvWeb
- 8-31-06 - Delays and security rules at the airlines could prove a
real boon to the VLJ market. James Coyne, president of the National
Air Transportation Association, said charters experienced 20-percent
growth since 9/11 and a 20- to 70-percent bump since Aug. 10, when
carry-on liquids were banned from airline cabins. Tim Spahr,
director of charter sales for Pinnacle Aviation based at Scottsdale
(Ariz.) Airport, told the Arizona Republic that sales have jumped 45
percent since the latest rules took effect. "It's incredible," Spahr
said. "And we've had a significant number of first-time callers who
specifically sight [sic] airport security hassles as the reason for
considering charter."
Aviation Week and Space Technology, April 25, 2005.
.. “Taxi Please”
- Newcomer DayJet’s huge ambitions include a large fleet and a whole
new market -- The business model for
DayJet is to use VLJ’s to offer a product that is less expensive
than traditional charters but quicker and more flexible than airline
or surface transportation.
For VLJ taxis to work, they will have to be careful not to
waste resources competing with airlines on city pairs where the
fares and travel times are reasonable.
Aviation Week and Space Technology, May 9, 2005.. “Small Birds, Big Goal”
- Adding light aircraft to its product line, Embraer aims to
be a force in bizjets.-
Embraer expects to capture as much as 30% of the new vlj
market that is projected to create demand for at least 3,000
airplanes in the next 10 years. This figure does not include
air taxis. If air taxis
succeed Embraer sees the little jet market through 2014 hitting
6,000.
Aviation
Week and Space Technology, May 30, 2005. “Lightweights” –
Single-pilot commercial operations, insurance, training head list of
concerns about VLJs.
Greg Thomas, chairman/CEO of Privatair, said he doesn’t see a
business case for VLJ commercial ops, regardless of the number of
pilots, at least among high-end charter operators. However, with an expected
influx of pilot owners with little or no business aviation
experience, the potential of the new models for aircraft management
business, he thinks, is huge.
Despite rosy projections, Dassault Aviation Chairman/CEO
Charles Edelstenne cautions that the entire concept will be closely
tied to affordable insurance.
“Two or three accidents in the early years could kill the
market,” he says.
Aviation Week and Space Technology. . June 13, 2005, “Good Start
for SATS” (Small Aircraft Transportation System) – If supporters are
right, less means more efficient use of airspace, airports and
aircraft. -- The
SATS system is aimed at expanding the use of national airspace
through new technologies to create affordable, point-to-point air
travel. Specifically,
the SATS vision is to allow 4-10 seat passenger aircraft access to
under-used rural and suburban airports, particularly in
low-visibility conditions.
98% of our country population lives less than a 30-min. drive
from any one of 5,400 small airports – which will be a major part of
our integrated next-generation transportation system. The NASA-led five-year
project is partnered by the FAA, and the National Consortium for
Aviation Mobility (NCAM).
Aviation Week and Space Technology. June 2005. According to a report by
Boeing “Worldwide economic growth will average 2.9% a year, but
market demand for commercial airplane services will more than double
the world’s fleet by 2024.
That’s based on average annual growth rates of 4.8% for
passenger traffic and 6.2% for freight.” This growth will cause
further congestion in our nation’s largest hub airports, increasing
delays and causing passengers to seek out alternative means of
transportation. The map
below shows the airports and metro areas most at risk.

AOPA magazine June 2005 – “Dawn of an era” – Here come the
jets. Eclipse Aviation
has geared it’s production at a break even point of about 600 jets
per year with an anticipated output closer to 1,000 units. Eclipse designed its tooling
to produce as many as 1,500 Model 500s yearly. It is significant that a
relatively few air-taxi operators are responsible for about half of
the approximately 3,000 VLJ orders placed among all
manufacturers.
The FAA, Federal
Aviation Administration, expects that 20% of
business travel will be by small jets by 2015.
This chart shows how
the Pentagon plans to boost spending to meet the need for upgrades
in the air traffic system. AW&ST Feb 28, 2005 pg 50

Bruce Holmes, wrote:
“Viable business concepts are emerging to fill the void being
created by the exodus from airline travel,” Holmes also stressed that
the air-taxi model would be attractive for reasons beyond mere
convenience. It could
also improve, rather than compromise, security against
terrorism. … This is
because: a) the
vehicles aren’t big enough to represent either a viable target or a
viable threat to the ground, b) the distributed system does
not have the dependencies of the centralized system, making multiple
paths from origin to destination possible and practical much like in
the internet. A
“distributed” system, with no main headquarters (or target zone),
can respond to stress more resiliently than a highly centralized
system can. Free
Flight, by James Fallow, page xviii.
Vern Rayburn, of Eclipse Aviation said that if the SATS/air –taxi
model fully succeeded, it would create a market for some 50,000
small jets. Free
Flight, by James Fallow, page xxi.
Time-and–motion studies conducted by NASA in the late nineties
found that for airline trips of 500 miles or less…your average speed
from when you left your home to when you arrived at your destination
is only fifty or sixty miles per hour. Bruce Holmes calculated an
average speed for his personal trips of 500 miles or less at 75
knots. For trips of 1,000 miles he averaged 125 knots and for trips
of 2,000 miles, he averaged 200 knots. Free Flight, by James
Fallow, page 7 and page 75-76.
Bruce Holmes says “..More than 98 percent of the U.S. population
lives within a thirty-minute drive of over 5,000 public-use landing
facilities. This
infrastructure is an untapped national resource for mobility.” Free Flight, by James
Fallow, page 80
In the late nineties fuel additive companies stopped producing
some of the ingredients necessary to distill 100LL fuel. When the existing stock of
additive runs out, some time between 2005 and 2010, that will be it
for the fuel on which most current piston engines run. Free Flight, James Fallow,
pg 175.
In it’s fund raising presentations Eclipse estimated that the
air-taxi market might amount to 30 million trips a year, within a
decade. That would be
less than 10 percent of the projected airline total for that time,
but it would still mean a fleet of 35,000 small jets. This in turn would mean
businesses to schedule the trips… Free Flight, James Fallow, pg
198.
There are two reasons
why people have not used air taxis much in the past, according to
Patrick Margetson-Rushmore, chief executive of the small charter
firm, London Executive Aviation. "Firstly, there is lack of
knowledge - people have not thought about air taxis as an option,"
he said.
"Secondly is perception - September 11 has acted as a
catalyst and people are looking for viable
alternatives."
Original Equipment Manufacturers (OEMs) of the VLJ can’t agree on
what the light jet should be named. Jack Pelton, CEO and president
of Cessna Aircraft, favors “entry-level jets,” while Rick Adam, CEO
of Adam Aircraft Industries, prefers “personal jets,” and Vern
Raburn, CEO of Eclipse Aviation likes “very light lights.” However,
since insurers have been referring to them simply as “VLJs,” for
“very light jets,” OEMs have now used the same term. They all agree
on one other thing. Microjet, minijets, babyjet, compact-jet or
Barbie-jet are names to avoid. Adam said he’s not particularly fond
of the term “microjet” because the “public doesn’t like getting in
small planes, thinking they’re not safe.”
The
hottest issue facing OEMs, owner/operators and Part 135 charter
operators is insurance.
Senior
underwriter Ann Thickey, from Global Aerospace, one of the world’s
largest aviation insurers, warns OEMs that numerous pilots who have
put down deposits for a VLJ will be told in the end they don’t have
enough flight hours, training or type ratings—regardless of what OEMs try to convince
them. “A lot of pilots are going to realize that they’ve been
drinking their own bath water…” she said. “All of the manufacturers
claim they’re building the most efficient, most durable and most
insureable VLJ—regardless of the fact that many of them haven’t
progressed past a design sketched on paper.” W. Brown & Associates
Insurance, headquartered in Irvine, Calif., the underwriting arm for
XL Insurance Specialty, anticipates taking a very cautious approach
underwriting VLJs. We don’t plan to underwrite anyone’s VLJ until
one year after production,” he said. “Cessna’s Mustang is the
exception, but that’s with a six-month cautionary period at this
point. “Aircraft won’t be insured until OEMs provide the insurance
industry with solid training programs. --- --
“Behind the VLJ Frenzy”—What Insurers, OEMs and Charter Providers
Are Saying
By Karen Di Piazza.
SEPTEMBER 2004
-----After the
writing of this article Global
has agreed to underwrite Eclipse’s 500 Jet and they have approved
their six-phase, curriculum-based factory-training program. However,
they haven’t agreed to underwrite Adam’s A500 twin piston or their
twinjet, the A700 AdamJet; they would consider it, but Adam hasn’t
provided anyone with details of what their training program will
entail.
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From Roger's
notes:
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Click here to
view some FLIR technology in action. This is the kind of stuff
going into VLJs.
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This section 23.2 of the FARs talks to Airplane
categories and how aircraft are categorized. Does a VLJ
fit into commuter category? Where does a VLJ fit? If you
know I'd like to get an email from you. Thanks.
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I think there is a possibility to make a one pilot operation work
if we can get the public past their fear of flying. I believe
that will take a few years of consistently safe air taxi operations
on a national level. This business model is very dependent on the
professionalism of it's early pioneers. There is no doubt that a
single pilot can operate an air taxi cheaper and provide more
payload capability than a two pilot operation. I think
that when the public starts to realize that they can save a lot of
money by flying with only one pilot they will begin to overcome
their fears. New technology such as "highway in the sky"
and the "Virtual Mentor Pilot" will make single pilot operations
safer and the public will eventually embrace the cost savings over
their fears.
I would plan on a two pilot operation to start and consider
single pilot operations on a limited basis to test the
waters
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What can you
expect to pay for insurance in an Eclipse 500? Here
are some preliminary estimates based on pilot
experience:
Minimal
experience 500hrs ZERO
turbine limited multi
$42K/yr Medium
experience 1000hrs ZERO turbine 200
multi
$37K/yr
Experienced
2500hrs 100 turbine 500
multi $27K/yr
Here
is a more recent (5/16/07) insurance estimate broken down
in another way:
Top
Gun - $20,000/yr Mid
Level - $40,000/yr Low
Time - $60,000/yr
These numbers
could double for Part 135 operators; the aircraft used as an air
taxi would be used more, so liability will be more
expensive.
In
order to obtain insurance a pilot will likely need about 1,500
hours of flying complex aircraft, 250 of them must have been in
a jet. They also must be proficient in IFR and must have flown
multiengine aircraft.
Insurance
rates come from individual insurance companies and is not
mandated by any agency. You can be sure of one thing however,
the rates will go up if these aircraft are misused and crash.
Taxijet will be working to provide incentives to keep the pilots who
fly them safe, as will Eclipse aviation, Cessna, the insurance
companies and the FAA.
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As
the price of fuel increases the cost of operation of any vehicle
increases but the vehicle that uses the least amount of fuel per
distance will in the long run be the most economical. A jet
like the Eclipse 500 will become more economical, as opposed
to existing bizjets, as the price of fuel increases.
Recent fuel
price drops make older fuel hungry aircraft more
competitive with new efficient models while providing a roomier
cabin and often speed advantage. If the cost of fuel stays low
there will be reduced enthusiasm over fuel efficient models.
Considering that
the reserve of
available fossil fuel on the planet Earth is expected by some
scientists to be completely exhausted in 25-30 years I would
expect fuel prices to rise again unless alternative fuels sources
are found.
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FAA definition of "Air Taxi:" "An aircraft operator who
conducts operations for hire or compensation in accordance with 14
CFR 135 (for safety purposes) or FAR Part 135 (for economic
regulations/reporting purposes) in an aircraft with 30 or fewer
passenger seats and a payload capacity of 7,500 pounds or less. An
air taxi operates on an on-demand basis." http://www.transtats.bts.gov/DatabaseInfo.asp?DB_ID=115&Link=0
There seems to be a new definition of the term "Air Taxi"
emerging: Air Taxi may become known as a service
where the client pays for a seat, portion of the aircraft or
the entire aircraft for only the time the client actually
occupies the aircraft. The operator accepts
responsibility for any inefficient use of the equipment and covers
cost of inevitable inefficiencies by raising the hourly rate of
occupancy. This is a distinction from Air Charter
which is considered to be a contract for the entire aircraft with
responsibility for inefficient use resting on the pocketbook of
the client.
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Here are some government statistics that might come in
handy in planning for your Air Taxi operation:
Here
are some govt. statistics on personal income levels of various
areas:
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Environmental
aviation issues:
http://www.sustainableaviation.co.uk/
http://www.enfica-fc.polito.it/en
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Page
updated 11-13-08
Email:
Info@Taxijet.com
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involve uncertainties and risks that could cause actual performance
and results of operations to differ materially from those
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include issues related to the ability to: obtain sufficient funding
to continue operations, maintain adequate cash flow, profitably
exploit new opportunities, fulfill all backlogs and the
unpredictable nature of business risks. The forward-looking
statements contained herein represent the Company's judgment as of
the date of this release and it cautions readers not to place undue
reliance on such statements. The Company assumes no obligation to
update the statements contained in this web site.
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