A co-founder of Fort Lauderdale software maker Citrix Systems is launching a regional, on-demand air service for business commuters called DayJet. He said the venture could potentially employ up to 400 workers at its South Florida headquarters and at hubs nationwide.
In a press conference Monday, Ed Iacobucci and Eclipse Aviation Chief Executive Officer Vern Raburn jointly announced start-up of the airline and delivery of 239 very light jets over the next 24 months - with an option to purchase 70 more.
The combined order will make it the largest air fleet in history, Raburn said. Iacobucci put the value of the order at $300 million.
The company is expecting Federal Aviation Administration certification in March 2006 and expects the business to be airborne by the summer of 2006, Iacobucci said.
Its business model calls for larger fleets of smaller aircraft to operate within strict regional boundaries, the men said, adding DayJet is to focus on a cost-effective, no-frills, "per-seat" service. The cost, while at a 25 percent premium over standard airline fares, will save businesses time and therefore money, Iacobucci explained.
The shared-ride service is sold by the seat with advance reservations.
I know we've discussed whether or not there will be differentiation in the industry in the future, and how 'air taxi' services will run (or if). Sounds like a very interesting idea, but so many details are lacking to get a good picture of what the business will look like.
it's already been tried and failed about 2 years ago at 3 of the best possible airports for business travelers, Teterboro, Whiteplains, and Midway. The company lasted a year and half before shutting down. I can't recall the name of the company. but they were using Falcons to start with, and then went onto the EMB 135. They learned very quickly that it's not cost effective to do this with smaller expensive new jets because the revenue being generated was inadequate. And this was at airport that are very busy and traditionally business traveler orientated.
it's already been tried and failed about 2 years ago at 3 of the best possible airports for business travelers, Teterboro, Whiteplains, and Midway. The company lasted a year and half before shutting down. I can't recall the name of the company. but they were using Falcons to start with, and then went onto the EMB 135. They learned very quickly that it's not cost effective to do this with smaller expensive new jets because the revenue being generated was inadequate. And this was at airport that are very busy and traditionally business traveler orientated.
That operation was Indigo. They had heavy backing from Amex too (key corporate travel agent) and still didn't work, but I haven't seen a good analysis why. Economics? Marketing? Ops?
