So, anyone have any leads or thoughts on writing a business plan to propose to a group of investors a small fractional operation ?
I mean I have written a business plan before, although not very well. But it seems like maybe a small frac operation out of KHIO or KPDX, with PC12 or light jet could be viable. Already there are 2 or 3 FBO’s that have alot of business, I fly out of KHIO and there is a ton of small jet traffic. Intel (the micro-chip compnay) flys 4-5 flights every business day (ERJ-135’s and Beech 1900’s)…they run shuttles to the bay area and to phoenix - these flights are contracted out to Dynajet I believe…
…Oh and by the way, for those that like to rush out and be the first to post unhelpful and unproffesional responses, please refrain from doing so with this post - you know who are (as do others)…perhaps move onto another topic where you can go ‘play’…
I wrote a business plan for an airline which was ahead of its time and now being carried out in parts by others. I also got distracted with two other businesses that were more manageable and had a better chance of success than an airline. I have thought about a unique fractional idea and I’m not to far from you. Send me a PM if you want to chat about it.
Anyone familiar with 135 Charter or Air-Taxi operations? If you have experience or know someone with experience in setting up a 135, please send a PM. Thanks.
Merlin… Frax take alot of $$$$ to start and currently NO frax has made money. There aren’t many Venture Capital guys looking to spend big bucks in an industry that hasn’t made any money. Your better off starting up a charter company… less capital and charter is MAKING money.
I’m not talking making money for one quarter, I’m talking making money for 4 consecutive quarters.
The following is from a aviation research company…
“Warren Buffet admitted that NetJets lost money in 2001. While the company did make a small profit in 2000, the costs of European expansion
in 2001 outweighed the small profit earned in the U.S. during that year. He also doubted that the other fractional players made any money at all. This statement was quickly refuted. In April, Flight Options stated that it had made its first quarterly profit in the last quarter of 2001, although
events since then cast serious doubt on this claim. Around the same time, Bombardier admitted that FlexJet did not make money in 2001 and could only hope to break even on operations in 2002, which they didnt.
In 2004, NetJets provided an unprecedented level of transparency for the fractional industry. The company admitted that it had lost $41 million in 2003, and even its U.S. operations (the most important and lucrative part)
were only modestly profitable. The company flirted with net profitability in 2004 ($10 million) but lost money again in 2005.”
NetJets claims they have hit critical mass this year and should make money going into 2007… We will see…
As one of the largest charter operators in the region for over 29 yrs I would take the above statement with a grain of salt. I know far more frac operators that are making large profits and only a few charter operators actually doing very well. Either option costs a tremendous amount of start up capital and should only be done with a large amount of guarantee for work once you start, otherwise assumptions are usually underestimated.
