Chapter four…Serviceable Addressable Market (SAM).
When discussing the SAM of any market, it is typically discussed relating to that part of the market it is servicing. Typically, when discussing aviation, it is broken into areas of regard such as charter, maintenance, and support (from catering to fuel and even manufacturing). The SAM (aka Serviceable Accessible Market), or in our case Markets!
The business of business aviation is typically and primarily involved in one or two areas of interest. However, they are all integral to the success of business aviation.
That is the problem and has been since 1962. The development of business aviation is a serious and expensive business that has never been developed to maximize its capabilities or even comes close to its real potential. Why not?
To find the why not, one must look at who oversees the business of business aviation.
They come in three types; one is going to be the trust fund baby, a privileged know-it-all that knows nothing about business aviation, but thinks it makes him important because he knows which end of a jet the hot air comes out of. Way too many thinks Tom Cruise is actually a terrific pilot and would hire him without a flight check. This picture is as close as Cruise ever got to an airplane and you might notice, it ain’t flying!
Type two is going to be the MBA that gets hired onto a business aviation operation because the people with the money think that an MBA can support the operations by keeping close track of everything. But effectively,
that person knows nothing about what and how business aviation works, much less can be greatly improved. MBA’s also think Tom Cruise is actually a pilot, and they know this as there he is in the picture in a cockpit of a jet. Not flying, just standing which is as close as he is every going to get to being the pilot he portrays.
Type three is going to be pilots that know all about flying, but know nothing about business or aviation, making money, or are remotely creative. Worst yet, because they are not creative, they follow everyone else and everything is by-the-book which means the company will never grow, never make money, or be successful. However, at least they do not think that Tom Cruise is a pilot, but an overrated actor with zero skill sets in an airplane and would not let him drive their car.
Yet there is a massive SAM out there, it has existed for years and years and none of the three types mentioned above can tell you what those markets are, or how to gain access to them.
Business aviation is not the lost Dutchman Mine. We know where the gold is and how to get it, and it is not even a secret, it is known by us, it is understood, and we know how to tap into it, and we know how to play it like a Beethoven Symphony.
To make the business of business aviation valuable, it has to offer real value, and provide meaningful services. Unfortunately, today it has never done any of that; it offers none of that.
Therefore no one has ever remotely tapped into the Serviceable addressable Market of business aviation.
When Croesus the original creator of money from the ancient Kingdom of Lydia around 560 BC decided to attack Prussia, so he sent his emissaries with gifts to the Oracle of Delphi in Greece to ask this question; If Lydia should attack Prussia, what the outcome would be? The oracle said that a great civilization would be destroyed. That was all Croesus heard and attacked Prussia and Lydia was destroyed. The point is, having great wealth does not replace listening. The Oracle was right, a great civilization was destroyed, and Croesus wound up sweeping the floors.
There are opportunities and massive profits to be made from the business aviation market that no one understands or even realizes are there like we do. The business of business aviation has not seen or understood that market since 1962 and it is time to change that dynamic, forever.
Anyone that would like more information please contact me at rick.eriksen@cox.net or Contact Dan Mack mackassoci@aol.com
