Making a Billion-dollar profit annually in the air charter or fractional industry is not an absurd or whimsical theory. Realistically, creating a billion dollars in EBITDA annually within the air Charter or Fractional industry can be done unequivocally. It is easy to structure, extremely logical, and ultimately an absolute necessity if business aviation is to ever make money.
Currently there are two ways this can happen . 1.) You can invest 2 billion dollars in the current charter or fractional industries, and after a year, and if you are lucky, there may still be 1 billion left. The remaining billion dollars is what the charter, piggyback, or fractional operators will claim to be the billion dollar profit. 2.) Alternatively, you could invest 0.0075% of $2 billion (or $1.5 million) and be part of a company that will be making a real profit of $1 billion plus annually, once fully operational.
Einstein famously tells us that doing the same thing over and over and expecting a different result is the definition of crazy, yet the charter and fractional operators do the same thing over and over, year after year getting the same results. Those results are to consistently lose money while thinking things like using a fuel or charter card will somehow change the outcomes. They do not!
People have spent millions looking for magic solutions like “Uber” for jets. I am not trying to be a downer here, but “Uber” for jets is not going to happen. Car’s are not jets, and jets are not cars. It is a totally different environment. However, it does represent exactly the kind of unsophisticated process that put charter and fractional where they are today, generally very expensive failures.
It is the charter, and fractional’s mindless devotion to Forrest Gump’s theory that “Stupid is as Stupid Does” that has most investors telling me that if it flies, floats, or fornicates, “rent it.”
That ingrained negative attitude in the investor community is not erroneous thinking; Charter and fractional as they exist today, are generally a bust. However, that deep-rooted wariness of investors regarding the charter and fractional industry has created our opportunity. Charter’s failures created the investor’s caution, which means the ability for us to change the paradigm is still there, and it is still unlimited.
Making the correct changes will be the major disruptive force that changes the business aviation industry entirely and forever. We know exactly what those changes need to be. And once they are in place, we will be harvesting the profits 24/7 indefinitely.
Here is what those changes will trigger? 1.) Take 90% of the current charter business. 2.) Render fractional irrelevant. 3.) Make owning your own corporate aircraft superfluous. 4.) Replace the totally ineffective Piggy Back Charter system. 5.) Tap into the high-end airline marketplace.
Logically, your next questions might be, am I crazy? If this concept is so good and so disruptive, then why has no one developed it before now? And that is an excellent question.
Well, to answer question number one; I am not crazy my creative insights have developed two highly successful international aviation companies in 1969 and 1988/89 that are both still operating today and are both highly profitable.
I am not a businessman that dabbles in the aviation field, nor a pilot who dabbles in business. I am a highly experienced and qualified jet pilot who is the creative force that recognized the opportunities, organized the infrastructures, and built those two hugely successful international aviation companies. I am also the creator of the first interactive aircraft budgeting software.
To answer the other question, why has no one ever developed this concept, simple, they do not know how. The problem sometimes with being in the game is that when you are in the game, you cannot see the obvious moves. That is why Football coaches and race car drivers have spotters off the field, they are not in the game or the race, but they understand and can see what is going on an tell the coach or the driver what the changes need to be.
I understand that ideas and concepts are a dime a dozen, and the words “startUp” will clear a room faster than a fire alarm going off. However, sometimes “startups,” are different; there are real ideas and real changes that make real and monumental differences.
For example: Back in 1876, another entrepreneur approached William Orton, President of Western Union. In 1876 the Western Union had a monopoly on the telegraph, the world’s most advanced communications technology. The entrepreneur wanted to sell Mr. Orton a patent for a new concept he had developed, Orton treated it like a joke, after all at that time, he was asking for $100,000!
However, Orton was not done with this. He took it upon himself to write to the entrepreneur/creator of this concept personally writing the following; “Mr. Bell after careful consideration of your invention, while it is a very interesting novelty, we have come to the conclusion that it has no commercial possibilities. What use could this company make of an electrical toy?”
A year later Mr. Bell had an investor and created a new “Startup.” That “Startup” is Known today as AT&T.
History has seen this kind of thing over and over, and now comes this opportunity. An opportunity that will change operational business aviation to its foundations and forever.
So, forget about the words “Startup,” I have already proven these concepts will work. However, at the time when I was creating my other successful innovations, neither the market nor the technology was in place to make these very specific and industry changing transformations, but they are both here now!
The market and the technology have come together, and we are ready to make the changes that will make the charter and fractional businesses into a whole new realm of profitability and success.
We will create this company, and it will be making over a billion dollars in EBITDA annually in five years of less, the only question is who will be part of this next success.