The Rapidly Expanding Air Taxi and Very Light Jets (VLJ) Market The Benefits and Positive Impact on Airport Ground Transportation Needs Joe Leader Air Taxi Association President Image Source: © Respective Companies. As example only. Not for reproduction. Image Source: © Respective Companies. Example only - Not for reproduction © Air Taxi Association, 2007, CONFIDENTIAL Next Generation Air Taxis Image Source: © Respective Companies. As example only. Not for reproduction. © Air Taxi Association, 2008 www.atxa.com Not just about the arrival of very light jets Technology advanced, highly efficient aircraft Major advances in business models Highly efficient operations Today’s Presentation Quick introduction Thank You to AGTA Participants Key Air Taxi Industry Definitions Forecasts and Growth Next Generation Companies Overview How Ground Transportation Can Benefit Q&A © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants National Interstate Insurance National Interstate Insurance Company (NIIC) and its affiliates are licensed in all states and the District of Columbia, and currently focus on passenger transportation, truck, recreation vehicle and Hawaii general commercial insurance. NIIC is an independently operated subsidiary of Great American Insurance Company and Underwriting Manager for Great American's public transportation and recreation vehicle insurance programs. © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants TransCore TransCore is dedicated to driving inefficiencies out of surface transportation through innovation, utilizing our expertise in systems integration, design consulting, operations, maintenance, manufacturing, enabling RFID and satellite communications technology, and our extensive Web-based logistics and transportation management systems. © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants Asheville Regional Airport The Asheville Regional Airport is located approximately 10 miles south of the city of Asheville, is served by 20 different tenants, and caters to general aviation. © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants Dallas Love Field The City of Dallas owns and operates Dallas Love Field, a generalpurpose airport that is home to seven FBOs. The airfield is located seven miles northwest of the downtown central business district and is managed by the City's Department of Aviation. © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants Los Angeles World Airports Los Angeles World Airports is a unique system of four airports owned and operated by the City of Los Angeles. Each of the airports – Los Angeles International (LAX), LA/Ontario International (ONT), Van Nuys (VNY) and LA/Palmdale Regional (PMD) – plays an integral role in helping to meet the regional demand for passenger, cargo and general aviation service in the 21st century. Each airport makes a distinct contribution to the strength of the system as it provides a high level of safety, security and service for its customers, communities and stakeholders. The strength of the system and the value this approach provides to the future of Southern California can be captured in a few words -- We Fly As One. © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants Port of Portland The Port of Portland is the port district responsible for overseeing Portland International Airport, general aviation at Hillsboro, Troutdale, and Mulino Airports, and marine activities in the Portland, Oregon metropolitan area. © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants DAJA International, LLC DAJA focuses on providing high-quality management services in three primary areas: • Transportation management • Ground-transportation logistics • Parking facility management © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants Park N’ Fly Park 'N Fly today operates 18 facilities in 12 markets nationwide and offers a network of off-airport parking services at over 80 affiliate locations through its Internet-based reservation system, the Park 'N Fly Network. © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants A-National Limousine Service, Inc. Established in 1982, A-National Limousine Service is Atlanta’s premier transportation service provider. Our experienced staff, well-maintained latemodel fleet and focus on customer service and dependability set us apart from the competition. © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants Cooper-Atlanta Transportation Cooper-Atlanta Transportation Services is based in Atlanta and caters to business travelers and special occasion events. © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants George’s Motor Coach George’s Motor Coach are experts in convention planning and can take care of your signage, scheduling, routing, shuttle, registration, provide "meet and greet" services, and security for groups as large as 30,000 plus. We provide transportation to and from hotels, seminars, trade shows, and arrange tours for sightseeing and shopping. We also provide charter services anywhere in the United States and Canada © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants Groome Transportation Groome Transportation currently operates shared ride door-to-door, shuttle, and charter services at Richmond International Airport and shuttle and charter services to Atlanta Hartsfield International Airport and Nashville International Airport. © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants National Limousine Association The National Limousine Association is responsible for and dedicated to representing and furthering the worldwide, national, state and local interests of the luxury chauffeured ground transportation industry. Our membership includes limousine owners and operators, suppliers, manufacturers, and regional and state limousine associations. © Air Taxi Association, 2008 www.atxa.com AGTA Atlanta 2008 Participants SuperShuttle SuperShuttle provides door-to-door service for over 8 million passengers per year, services to and from 28 major airports in 23 cities, and has approximately 1,200 distinctive blue and yellow vans on the road. © Air Taxi Association, 2008 www.atxa.com Key Definition Next Generation Air Taxi © Air Taxi Association, 2008 www.atxa.com Direct, on-demand air travel at competitively priced levels using technologically advanced aircraft and/or advanced business models to maximize efficiency. Filling the gap between traditional charter, commercial carriers, and driving with a return on time investment. Majority of next generation air taxi passengers today come from the roads and aircraft primarily utilize secondary airports. Key Definitions Very Light Jet VLJs utilize advanced avionics from leading manufacturers allowing aircraft to fly RNP and to be ADS-B ready for more efficient aircraft utilization. © Air Taxi Association, 2008 www.atxa.com Very lights jets are defined as jet aircraft weighing 10,000 pounds of less, certified for single pilot operation, and possessing advanced avionics. Very Light Jets Aircraft Citation Mustang Manufacturer Seats Engines Cessna 6 2× PW615F Eclipse 500 Eclipse Aviation 6 2× PW610F Diamond D-Jet Diamond Aircraft 5 1× Williams FJ33-4 Eclipse ECJ Eclipse Aviation 4 1x PW615F Embraer Phenom 100 Embraer 6-8 2× PW617F Epic Victory Epic Aircraft 4-6 Honda HA-420 HondaJet Spectrum S-33 Independence Honda Aircraft Company Spectrum Aeronautical Cirrus Jet Cirrus Design 7 Epic Elite Epic Aircraft 7 6-8 9 1× Williams FJ33-4 2× GE Honda HF120 2× Williams FJ33-4 1× Williams FJ33-4 2× Williams FJ33-4 1× Williams FJ33-4 Excel-Jet: SportExcel-Jet Jet 5 PiperJet Piper Aircraft 7 1× FJ44-3AP Spectrum S-40 Freedom Spectrum Aeronautical 7-9 2× GE Honda HF120 © Air Taxi Association, 2008 Shortest Takeoff / Landing: 3100 ft / 2380 ft Flight Level Max: 25,000 ft – 45,000 ft Max. Cruise 340 knots (630 km/h) 370 knots (695 km/h) 315 knots (583 km/h) 345 knots (639 km/h) 380 knots (704 km/h) Max. Range Cost Orders Certification 1,300 NM $3.295m 250 November 23, 2006 1,125 NM $1.52m 2,500 December 31, 2006 1,350 NM $1.38m ~300 2008 1,250 NM NA NA 2009 1,320 NM $2.85m 50+ 2008 320 knots 1,200 NM $1.20m 1,100 NM $3.65m 2,000 NM $3.65m ~1000 NM $1.3m 1,600 NM $2.10m early 2008 1,000 NM $1.00m late 2009 1,300 NM $2.20m 2,200 NM $6.2m 420 knots (778 km/h) 415 knots (770 km/h) ~300 knots 390 knots (722 km/h) 375 knots (695 km/h) 360 knots (667 km/h) 435 knots (805 km/h) www.atxa.com 2009 130+ 2009 2009 327 ~180 2010 early 2010 2010 FAA Analysis for 2008-2025 Updated Estimate on VLJ Fleet Entry © Air Taxi Association, 2008 www.atxa.com The actual number of VLJ deliveries in 2007 fell short of our assumption in last years forecast (143 vs 350). The current forecast assumes that VLJs will continue to enter the active fleet at a rate of 400-500 aircraft a year, reaching 8,124 aircraft by 2025. FAA Analysis for 2008-2025 Selected Quotes on VLJ Growth The relatively inexpensive twin-engine VLJs (priced between $1 and $2 million) are believed by many to have the potential to redefine the business jet segment by expanding business jet flying and offering performance that could support a true ondemand air-taxi business service. © Air Taxi Association, 2008 www.atxa.com PMI Media Forecast Very Light Jet Estimates PMI Media For 2007, publisher achieved most accurate forecast for production 18 months in advance 2007-2016 7,659 VLJs Added Worldwide; 5744 U.S. 4,595 Units or 60% Deployed to Existing Air Taxi / Charter Marketplace; 3346 in U.S. U.S. 2008-2016 Source: PMI Media. Please note newest VLJs / PLJs not forecasted. © Air Taxi Association, 2008 www.atxa.com 75% of market, Standing at 75% of current backlog United States VLJs Deployed as Air Taxis 600 500 400 HondaJet Must ang 300 Phenom 100 D-JET Eclipse 500 200 100 0 2007 2008 2009 2010 2011 2012 2013 2008-2016 Source: PMI Media. Please note newest VLJs / PLJs not forecasted. © Air Taxi Association, 2008 www.atxa.com 2014 2015 2016 VLJs Deployed as Air Taxis Total Aircraft Growth in U.S. 3500 3000 2500 HondaJet 2000 Mustang Phenom 100 1500 D-JET Eclipse 500 1000 500 0 2007 2008 2009 2010 2011 2012 2013 2008-2016 Source: PMI Media. Please note newest VLJs / PLJs not forecasted. © Air Taxi Association, 2008 www.atxa.com 2014 2015 2016 FAA Analysis for 2008-2025 GA Growth with VLJ Introduction © Air Taxi Association, 2008 www.atxa.com “GA instrument operations are projected to grow 2.1% a year . . .” “GA activity is projected to grow 2.9% a year (almost as much as commercial activity), reflecting the expected impact of VLJs and additional business aviation activity.” VLJ Runway Length & Weight Initial aircraft illustrating incredible efficiencies Remarkably short jet takeoff / landing capabilities Opens highly efficient, Stage IV jet aircraft to wider range of secondary airports across America Cessna Citation Mustang Eclipse 500 Embraer Phenom 100 © Air Taxi Association, 2008 Takeoff 3,110 ft 2,342 ft 3,400 ft www.atxa.com Weight 8,645 lb 5,995 lb 9,700 lb Landing 2,380 ft 2,250 ft 3,000 ft FAA Update for 2008-2025 VLJ Air Taxi Utilization Rate © Air Taxi Association, 2008 www.atxa.com “VLJ air taxis are expected to average approximately 1,500 hours per year, shared ownership users about 525 and private use 375.” What this Means for Ground Trans. VLJ Air Taxi Utilization Rate © Air Taxi Association, 2008 www.atxa.com Over 1000 passenger ground missions per aircraft Average addition of 290,000 new ground missions per year By 2016, additive effect will be 3.1 additional ground missions per year A Wide Variety of Business Models: Next Generation Air Taxi Operators Air Taxi Operators Air Taxi Marketplaces Future Operators © Air Taxi Association, 2008 www.atxa.com Ground Transportation Recommendations During Growth © Air Taxi Association, 2008 www.atxa.com Get involved early in massive market upswing Communicate your availability and flexibility to secondary airports, carriers, communities Engage in cooperative arrangements with air taxi operators to take passengers the final mile Ground Transportation Stretch, but Avoid the Pitfalls © Air Taxi Association, 2008 www.atxa.com Right vehicles for the right missions Customers much more price sensitive than traditional air charter customers Organize to serve customers on daylong missions Take Your First Air Taxi Flight First Flight Program © Air Taxi Association, 2008 www.atxa.com Reseller program for airports and ground operators $3000 in discounts across six leading air taxi companies Only $99 (Normally $199) $20 reseller fee to ground transportation provider Air Taxi Industry Partnership General Membership © Air Taxi Association, 2008 www.atxa.com Air Taxi Industry Partnership Featured Companies & Airports © Air Taxi Association, 2008 www.atxa.com Air Taxi Industry Partnership Gold Membership © Air Taxi Association, 2008 www.atxa.com Universal navigation logo placement Ideal for companies with more than one service area and broadly serviced airport and customer base Ability to offer one-time discounts via First Flight to get a customer once, keep them for life Contact Information Joe Leader, President joe@atxa.com Air Taxi Association (ATXA) Two Ravinia, Suite 500 Atlanta, GA 30346 678.855.7177 © Air Taxi Association, 2008 www.atxa.com Q&A © Air Taxi Association, 2008 www.atxa.com