Post on 31-Oct-2014
description
“When it comes to air travel today, everyone has a
horror story”.
Air travel has become a BIG time suck with
delays and flight cancellations, degrading the traveling
experience system-wide.
What Does This Cost Us?
over 150 million hours of passenger time, or $4.2 billion,was lost in 2008 as a result of
delays and cancellations.
The Cost Is Not the Price!
While airline pricing has become competitive we
pay more in loss productivity and
abysmal experiences.
When people use “air travel”,
what is their intent?
Their intent is to get from
point A to point B as convenient
as possible.
Convenient Means:suitable or agreeable to the
needs or purpose; well-suited with respect to ease of use.
Air Travel is NOTconvenient rather
inconvenient.
What AboutPrivate Aviation?
Private vs. Commercial
5,000 Airports 500 Airports
No delays Lots of delays
No waiting in line Always in line
Convenient Inconvenient
Expensive Cheap
But Private Aviationis also Broken.
Billions in assetssit idle waiting to
be used.
The economyhas forced cost cutting
and private aviation has been hit hard.
General (private) aviation operations were off 33%
from 2008 to 2009.
Is it the economy orthe business modelof private aviation?
Most business travelersthink private aviationis out of their reach
because of cost.
Why Does PrivateAviation Cost So Much?
Because the cost is based ona plane being used by
one or a few people ratherthan the many.
Because the cost is based mostly on one way usage.
Point A to B and returning empty.
Private operatorsdon’t sell seats rather
they sell this thing called “legs”.
“Legs” are flights from point A to B and the leg
from B back to Ais usually empty.
What if they sold seats rather
than “legs”?
If an eight passenger jet cost $7,000 from
point A to B and back that would equate to
$875 per seat.
The same commercial flight could cost between
$350 - $570 per seat.
The difference between private and commercial
aviation is time & convenience.
Time and conveniencerepresent economic
value.
A traveler’s value is centric to the cost of
time and the convenience of the
experience.
For private aviation to expand the market it
has to change the business model.
Empty seats are under utilized assets.
More people would use private if the price of
use were lower!
To “optimize” you have to reach the market
with a new proposition.
How can private aviation reach a bigger market?
Have you heard aboutsocial media?.
Social technologyhas accelerated the
Power of Reachboth online and offline.
Do you think business traveler’s
would “share” a seat with “friends”?
Most business travelers knowother business
travelers.
Business travelersusually travel
similar route’s.
Fulfilling people’s intentTo find better ways to
travel would be considered “social”.
Private Aviation….
needs tobuild a newmarketplacefor travelers.
Together or Separately?
One private aviation operator cannot make
the “systemic” changes needed.
Collective Effort
A new private aviation “system” needs everyone’s help.
It Can Be Done!
Will privateaviation innovate
and expand usage?
Join the ConversationCreate The Change
www.planeconversations.com
Come create a better marketplace for travelers.