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Monday, September 8, 2008

New Biz Model at $8 per Minute

Yet another air taxi model emerged with the advent of BlueSky Taxi out of Chicago which uses the single-engine Cirrus SR22-G3s to offer trips within a 300-400 mile radius of its Chicago Executive Airport headquarters.
BlueSky, which launched in January, charges $8.25 per minute or $495 per hour, no matter how many passengers are on board the three-passenger aircraft. The only thing missing is a yellow checkered livery, although the aircraft are equipped with a meter that starts and stops with the engine. Passengers still call a reservations line to book a flight rather than going to the airport and sticking their hand in the air.
Chief Executive Officer Jerry Zak called the concept revolutionary but he is banking on airline capacity cuts – especially to small points – and the hassle factor, just as other air taxi companies are doing, for success. For instance airlines have largely abandoned such markets as the Illinois state capitol at Springfield, although American Eagle just dropped its St. Louis bound service in favor of flights to Chicago and Dallas-Fort Worth.
Zak noted that a 160-mile trip to Chicago – about three hours by car – would cost about $412 for the 50-minute trip. Meanwhile, Waukegan-Springfield, an $836, 70-minute flight via commercial airlines, is just $495 for the 200-mile, 60-minute flight on BlueSky.
Zak has a fleet of four Cirrus SR22s with another three scheduled for delivery shortly. Seven pilots command the aircraft which, so far, have flown college students and business people. Pilots are required to have 1,200 hours compared to what Zak describes as 750 for most companies.