A Bunkerism: “They just wanna get rid of us old guys over 50, that’s all, and put us out to pasture. Well, I ain’t ready to be pasteurized.” Me either! If you are not ready to be pasteurized, and prosper in business aviation, read on!
The business aviation industry floats in a sea of money. The perfect environment from which to earn massive profits, yet no one makes any real profits from business aviation. Why Not?
Unfortunately, the answer is alarmingly simple. Operating a business aviation company for profits employing standard and traditional business aviation models, does not now, or ever will work as a stable profitable business environment.
As businesses go, business aviation is at best inconsistent, unpredictable, and highly regulated. Add to those issues the core problem of insufficient and decidedly erratic utilization, and it becomes painfully obvious that the business of business aviation simply cannot be consistently profitable. Meantime many of the people that run the business aviation businesses are not sophisticated in aviation operations, so they just follow each other around hoping that charter or fractional will somehow work, and it never does the way they are operated.
On the consumer side of the equation, the rates being charged to use aircraft are now and have been maxed out at a rate below the variable and fixed operating costs. Meaning aircraft as currently operated will always lose money. Other negatives include operational unknown variables like holding patterns, dead head legs, ATC speed reductions, stronger than forecasted head winds, or AOG issues. These are some of the endless issues that highlight why making a profit in business aviation is not possible. At least not using the methods employed today.
In other words, the business of business aviation is not a paradox, or an enigma, but a solvable Rubik’s Cube. Better yet the realistic and profitable solutions we have developed are inexpensive, and easy to develop.
To understand the solution requires thinking creatively. Think about this; Tesla did not invent electricity, and Elon Musk did not invent the car. However, Musk took on the decision to build the electric car at a time when few were convinced that Elon Musk’s knew anything about building cars, especially electric cars. Then he made a car and called it Telsa. And today, Telsa is just slightly successful. Creative thinking at work.
So, when you are ready to think outside of the box, to solve the Rubick’s Cube of business aviation, to be accepting of creative thinking, I can bring you to that same place as a Musk. And the kicker is, it is not even costly to develop, but it will be contractually exclusive to you, and the fundamental aspects of it will be patented.
As it turns out I am a creative thinker. I just happen to know exactly how to apply the same level of solution to the current business aviation operations that Musk did to Tesla. For example, in 1988/89 when I was CP for MBNA there was an issue within the maintenance environment that was flat out of control, so I left Benz to create and develop Jet Support Services inc., aka JSSI to solve the problem. And JSSI is still there.
When I started flying in 1962, I became aware of the persistent and decisive failures of business aviation. At that point I took the time to understand what caused those failures. And those failures are and always has been in the aviation world a lack of innovation, products, methods, systems, and processes.
The following is a list of business aviation systems and programs that suffer from lack of innovation, products, methods, systems, and processes.
Ø Charter
Ø Fractional – Fancy name for time share
Ø Piggyback charter – aviation name for Pick – and – Shovel Play
Ø Management
Ø Dead Head flights aka., empty leg flights
Ø Shares.
Additionally, aviation systems suffer from “other” unknown operational liabilities such as repositioning costs. If repositioning costs are greater than 5% then that model is flawed.
The business of business aviation is not complicated at all! In fact, making money in the aviation industry technically is quite simple. However, it’s extremely important to have extensive operational knowledge to understand the basics of how and why business aviation operates, fluctuates, succeeds, or fails.
Also, I know how to put the fourth ace in your hand. Having four aces creates the very real opportunity to augment your operations to number one in business aviation with the control and profitability (of an entire industry), no one ever thought possible.
That augmentation is A force multiplier in the form of a feedback loop. This is a very real, very revolutionary, and massive profit generating system. Adding this feedback loop will make your operation unique, unstoppable, and the domineering super business aviation leader of the entire industry.
I am not pointing out these issues just to be pedantic. I am saying them because making these changes will change business aviation completely, and I want to be part of that change.
Then who am I to say these things? As mentioned above, I created the concept of, and then co-found Jet Support Services Inc, aka JSSI 1988/89 with Rick Haskins. JSSI was a system that was absolutely needed and revolutionary when I introduced it. I created the JSSI system which is still operational over 30 years later even though I am sure the people that run JSSI today, do not even know why or what JSSI really is. JSSI was the program of its time, and that happened because I think outside of the box. I understood the value of the big box model before there was a big box model.
Before JSSI in 1969, I created and co-founded Midwest Air Charter for the Federal Reserve Bank at their request. Midwest subsequently became known as Airborne and today is known as DHL. As a pilot I have over 21,000 PIC hours. I am type rated in several jets, and from 1976 to 1988 was chief pilot for MBNA with zero accidents or violations while maintaining a 99.75% on time completion rate – based out of Cleveland CGF I might add. So that is who I am, and today we are ready to help the business of business aviation, to be creative and profitable. Really profitable.
So, What Works you ask? How exactly can you benefit from what I know? Simple: make the changes I know how to make to take the inefficiencies out of the current systems. Simple to resolve and implement. Make a few simple changes and bingo. You will move your ops from 1962 to 2022 and see the difference that practical application of creative thinking will make.
FYI, this spread sheet shows that within a few years, the entire system will be making over a billion dollars a year. Like to know how to Make it Work for you? Simple contact me directly at rick.eriksen@cox.net
Or find me here on LinkedIn. https://www.linkedin.com/in/rickeriksen/
