SATSAir shutting down

deadstick

deadstick

Well-Known Member
ANN

Another Blow For Air-Taxi Industry: SATSair Shutting Down

Promising Air Taxi Operation Calls It Quits

Information is sketchy at this moment but ANN has learned that SATSair, thought to be a potential model for future inter-city air taxi networks, shut down operations just a few hours ago.
Flying a fleet of SR22 single engine piston aircraft SATSair looked, to many, to be a survivor in the increasingly turbulent and unforgiving air-taxi industry - an industry whose high-profile failures have accelerated in the wake of a failing economy and negative public attention by Washington, the media and clientele increasingly shy about using non-airline travel alternatives.

SATSair offered "regional point-to-point air transportation that is safe, convenient and cost effective. Aircraft are pre-positioned strategically throughout the service area, allowing customers to board a ATSair aircraft and depart with little notice. SATSair eliminates the frustrations of crowded airline terminals, long security lines and lengthy connections. In addition, SATSair utilizes numerous airports that the airlines don't, making it exceptionally convenient for rural destinations and multiple-stop itineraries."

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Based in Greenville, SC, SATSair rates varied from $550 to $655 per flight hour and appeared to be making market headway prior to the economic downturn. The company was seen as one of the few viable models for modern small air-taxi operations after the demise of Florida based DayJet in 2008. ANN will have more info as soon as company officials make themselves available for comment...
 
deadstick said:
ANN

Another Blow For Air-Taxi Industry: SATSair Shutting Down

Promising Air Taxi Operation Calls It Quits

Information is sketchy at this moment but ANN has learned that SATSair, thought to be a potential model for future inter-city air taxi networks, shut down operations just a few hours ago.
Flying a fleet of SR22 single engine piston aircraft SATSair looked, to many, to be a survivor in the increasingly turbulent and unforgiving air-taxi industry - an industry whose high-profile failures have accelerated in the wake of a failing economy and negative public attention by Washington, the media and clientele increasingly shy about using non-airline travel alternatives.

SATSair offered "regional point-to-point air transportation that is safe, convenient and cost effective. Aircraft are pre-positioned strategically throughout the service area, allowing customers to board a ATSair aircraft and depart with little notice. SATSair eliminates the frustrations of crowded airline terminals, long security lines and lengthy connections. In addition, SATSair utilizes numerous airports that the airlines don't, making it exceptionally convenient for rural destinations and multiple-stop itineraries."

​
Based in Greenville, SC, SATSair rates varied from $550 to $655 per flight hour and appeared to be making market headway prior to the economic downturn. The company was seen as one of the few viable models for modern small air-taxi operations after the demise of Florida based DayJet in 2008. ANN will have more info as soon as company officials make themselves available for comment...
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Damn...more pilots on the street. From what I hear the one out of GAI isn't doing to well either.
 
WestIndian425 said:
I wonder what was wrong with the business model. How long was the company in existance?
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Those airplanes are too expensive, and most of them were still leased if I recall. Better to have something like 210s, or something similar. I think the cirruses we're too expensive.
 
ppragman said:
Those airplanes are too expensive, and most of them were still leased if I recall. Better to have something like 210s, or something similar. I think the cirruses we're too expensive.
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I think the Cirrus is the only single engine machine that could operate a deal like SATSAir simply because of the parachute. People would be leery of a single engine, but you could say "Yeah, but we have this nifty parachute that guarantees we will be safe if anything happens". Not that it isn't complete BS, but it would alleviate the fears of lay people. A 210, Mooney or other thing wouldn't be able to say this.
 
WacoFan said:
I think the Cirrus is the only single engine machine that could operate a deal like SATSAir simply because of the parachute. People would be leery of a single engine, but you could say "Yeah, but we have this nifty parachute that guarantees we will be safe if anything happens". Not that it isn't complete BS, but it would alleviate the fears of lay people. A 210, Mooney or other thing wouldn't be able to say this.
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I think that's there's a ballistic parachute for 210s, and Bonanzas, but I could be wrong. Up here our airplanes don't have them, and people don't care, and that's not just because "its Alaska." People have gotten used to the idea of light airplanes, because people have seen them for their whole lives here in southeast. SATS will come, it will just take time.

In a bad economy, people need efficiency over convenience. Plus the prices are way too high. We operate a kind of hub and spoke system here and we charge way way less for even our charter rate. $550 to $650 per hour is a rate that's there to meet the cost of your loan payments. Our cherokees go for $340 per hr, and most people aren't chartering, they're getting seat fares. Now the Cirruses are a little faster, but not almost twice as fast. If you run light airplanes around efficiently you can make scads of money, and provide a service that isn't that expensive, you just can't do it in newer airplanes (they cost to much to acquire, and too much to operate in comparison). Look at Cape Air, the largest self branded regional in the country, flying around Cessna 402s and making good money doing it. Operate like that, and the money will flow. I'd be willing to bet that what killed SatsAir was too many empty legs, and too high of a price on the revenue legs to attract joe six-pack.
 
minitour said:
$600/hr for 2 pax and 200 knots didn't work?

What are the odds?

-mini
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Seriously,

Look at a cherokee 6, you could go IFR most places down south through most of the year, and charge $340/hr for charter and still make money, yet no one does it.
 
ppragman said:
Seriously,

Look at a cherokee 6, you could go IFR most places down south through most of the year, and charge $340/hr for charter and still make money, yet no one does it.
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With insurance too? I really have no idea, but I would figure the insurance for a charter op is probably wicked expensive.
 
Murdoughnut said:
With insurance too? I really have no idea, but I would figure the insurance for a charter op is probably wicked expensive.
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We were being told $16k for IFR (single pilot) in a Seneca II. For $14k, we could rent it solo to renters with 100 TT and a 10 hour checkout.

Insurance is VERY expensive.

-mini
 
ljg said:
Holy . I guess so! :whatever:
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Yep.

Next time someone says "Insurance requires ___". Understand that they probably mean "So that we don't have to bend over once a year to write our insurance check, as a way to reduce premiums we've agreed with our insurance underwriter to only operate with pilots having the following qualifications."

You could get a policy on a 50 hour private pilot in a G550 if you wanted to...you'd just have to pay for it.

-mini
 
minitour said:
Yep.

Next time someone says "Insurance requires ___". Understand that they probably mean "So that we don't have to bend over once a year to write our insurance check, as a way to reduce premiums we've agreed with our insurance underwriter to only operate with pilots having the following qualifications."

You could get a policy on a 50 hour private pilot in a G550 if you wanted to...you'd just have to pay for it.

-mini
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Wow....

That could have been a huge expense as well if they had a fleet of SR22's. Insurance is an area I really don't know much about.
 
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