Monday, May 1, 2006
DayJet Plans Regional Operations
In a departure from the traditional regional model, DayJet is planning a "Per-Seat, On-Demand" business jet service focusing on hard-to-reach markets for the business traveler who wants an out-and-back-in-one-day passenger service. Vice President-Marketing Vicky Harris called the concept, using the Eclipse 500 microjet, a new paradigm in travel which, for the first time, makes on-demand air travel accessible "to the middle level manager who is now spending his life in the car."
The Delray, Fla.-based company announced Florida and the Southeast as its first service region, with Tallahassee as its first Very Light Jet (VLJ) Center of Excellence. DayJet plans to connect south, central, west, north and Panhandle communities with point-to-point, on-demand transportation. Partnering with local FBO, Flightline Group, the Tallahassee facility will be dedicated to VLJ service education including pilot, maintenance and customer service training. In the second quarter it plans to announce the airports it will serve. There will be five of these "DayPorts" within Florida, said Harris. She also indicated that the company will roll out additional DayPorts in first quarter 2007, after it launches service, which is scheduled between October and December of this year. Calling its service the "next major advance in regional business travel," the company, which will operate under Part 135, is seeking partners with regional economic authorities, airports and FBOs that want DayJet as part of their business structure.
"Each day, thousands of regional business travelers struggle to get their important meetings inserted into their overcrowded work schedules," said DayJet President Ed Iacobucci. "Our 'Per-Seat, On-Demand' service will get them between those hard-to-reach locations on their schedule, instead of the networks' schedules." This "new choice in regional transportation," will offer service between designated regional and community airports that currently have limited or no scheduled airline service and are capable of supporting the new concept. Calling its network DayPorts, its airports will serve as the primary points of origin or destination for its flights connecting to other communities of interest in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina or Tennessee. Its aircraft will be configured for two-pilot operations and offer three passenger seats. It also plans a region-by-region rollout as more airports and/or communities come on board. It expects to expand service to 20 southeastern airports within 12 months of launch and awaits the FAA certification of the $1.3 million Eclipse jet, expected in June. The company has a five-year agreement with Eclipse calling for the purchase of 239 aircraft in the first two years in addition to 70 options, which would bring the order book to 309, said Harris. It is currently looking for separate aircraft financing as well as other investments.
DayJet, founded in 2002, has raised $22 million dollars, all of which was used as working capital including the development of new technology, pioneering of new software and market research. It now has 56 employees. The private investors included individuals from high tech companies as well as individuals who work for Wall Street investment firms who are making their own private investments in the company.
The cost for the passenger will be between $1 and $3 per seat mile depending on the flexibility of the passenger. If the passenger is flying a very tight schedule, said Harris, the cost will be in the higher range. But if they are more flexible and can afford the time to accommodate at least one pick-up, drop-off or fuel stop, the cost will be less. Harris said their market studies indicate the cost per seat mile aboard a commercial flight going from secondary market to secondary market is between 75 cents to $1. However, she also pointed out what business travelers and travel managers have told them -- the premium costs of DayJet come out even, when considered against the fact that commercial schedules often mean hotel and per diem costs.
The concept developed from Iacabucci (pronounced Yacabucci) experience after founding Citrix Systems, the 15th largest software company in the US, when he was on the road all the time. He ultimately got a private jet but felt such services should be make available to middle level travelers in order to make them -- and their companies -- more efficient. Harris indicated that, with DayJet, he would now be sending people rather than bits and bytes. "We are the Fed Ex of the on-demand passenger market," she said. "The DayJet premise is the increase in productivey and quality of life." The company offers a membership program in which a client pays a small fee and has access to their network but commits to flying four times per year on a pay-as-you-fly basis. "That helps us ensure we can match demand to our aircraft supply," said Harris.
Yacabucci's experience has meant the pioneering of logistical software that allows DayJet to instantly develop a viable routing that takes into account, not only the passenger's schedule and destination but pilot hours and training, as well as maintenance schedules in order to ensure that the operation is both economically and operationally efficient. He also founded Wingedfoot Services, a charter operator where he learned how hard it is to make money, said Harris. DayJet's real-time operations system has been tested for more than a year, running thousands of simulated flights and will be ready for operation when the first aircraft roll off Eclipse's production line.
It is marketing its operations to small businesses and mid-level managers who travel to or from communities without frequent scheduled service. It is also pitching its services beyond business travelers to regional economic authorities, many of whom have lost or seen their air transportation connection to the national air transportation system diminish over time.
Harris said DayJet is interested in hearing from aviation and economic development officials. "There is a lot airports and authorities can do to prepare for DayJet," she said. "We've been sending out DayJet Action Kits to chambers of commerce who have contacted us from across the country. They can begin profiling their regional travel habits. We also facilitate contacts with the FAA in order to get their airports mapped for WAAS approaches." It is targeting companies "with a track record in delivering first-class facilities and services with unsurpassed safety and security."
DayJet partners come at three levels -- the DayStop, the DayPort and DayBase. The most basic level of operation -- DayStop -- is for an airport or FBO to serve as an extended pick-up or drop-off point for passenger service -- what would be called spokes in airline service. DayPort, the second level of service using an airport or FBO as a primary point of origin or destination for flights. Every DayPort will house DayJet customer care representatives and necessary infrastructure to ensure optimal customer experience. DayBase, the third and most intensive level of operation, is for a DayPort to also become home for its maintenance facilities and flight operations personnel. Pilots will return home at the end of their shift each day and the DayJet fleet will return to a DayBase each night for maintenance. It is now recruiting seasoned pilots having recently defined its qualifications. "We are hiring only captains with a minimum of 3,000 hours flight time with 500 hours as pilot in command of turbojets," said Harris.
Tallahasee-based Flightline Group, Inc, is partnering with DayJet as its first Center of Excellence. The two companies are currently hammering out the training that will be housed on site as well as the facilities they will need. Ultimately, said BobVan Riper, vice president and general manager, six-access simulators will be part of the picture. "Tallahassee and Flightline want to be on the leading edge of this industry," said Van Riper, "not just as a regional or general aviation airport but as a community airport. We want to go beyond DayJet and become a national center for VLJ training to take advantage of the good weather and the open airspace. If you look at the potential in terms of facilities development to support VLJs, fuel sales and growing the maintenance business, this can be a huge industry." Ed Iacobucci & Vicky Harris, (561) 454-2655; Bob Van Riper, Flightline, (850)574-4444.

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