Very Light Jets ... Pulling Down Profits?

Doug Taylor said:
....what ATC does with jet aircraft in the flight levels that can't "keep up with traffic"?
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The same thing they do to the ones running over all the other traffic in the flight levels.....They'll try to make everyone fly the speed of the lowest common denominator. Like letting the Pace Car lead all 500 laps without a green flag. Let's see how the airlines like slowing to .65 M? Hahahahahahahaha.
 
Eclipse wins Collier Trophy...VLJs overhyped?

Let me start by saying that I really hope VLJs succeed in ushering in a new era of smaller air service ops. It could potentially be great for pilots, the public, small airports, and the aviation community as a whole.

However, while I sort of understand the economics of trying to skim business travellers away from the airlines, isn't this whole VLJ thing a bit overhyped? I mean, will they really be able to keep total operating costs (crew, fuel, insurance, debt service, maintenance, depreciation, cleaning, & all other assorted overhead) under, say, $3,000/hour per aircraft? Will 6-10 paying pax be enough to cover a 2-3 hour flight? Will they pay $600-$1,000 to get from White Plains, NY to Wilmington, DE? What if most flights aren't full?

If small airlines cannot do this with a Ratheon Premier or a B200, then why will they suddenly be able to make it work with a Mustang or an Eclipse? Do VLJs fit neatly into that niche between the slow and affordable (Caravan, Navajo, etc.) and the fast and expensive (Cit X, Lear, etc.)? Are the operating margins going to be that much better? Perhaps VLJs will make charter ops more profitable, but scheduled air taxis?

Maybe some MBA types can answer because I don't quite get it.
 
Center_Mid said:
...under, say, $3,000/hour per aircraft? Will 6-10 paying pax be enough to cover a 2-3 hour flight? Will they pay $600-$1,000 to get from White Plains, NY to Wilmington, DE? What if most flights aren't full?

If small airlines cannot do this with a Raytheon Premier or a B200, then why will they suddenly be able to make it work with a Mustang or an Eclipse? Do VLJs fit neatly into that niche between the ...(Caravan, Navajo, etc.) and the fast and expensive (Cit X, Lear, etc.)?

Are the operating margins going to be that much better?
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I think you are looking at the wrong demographic. The operating costs for the Eclipse are estimated at less than $302/flight hr.....Yes 3 hundred per hour (less pilot's salary).

The VLJs are way under the market niche for the Lears (Especially the CX). It is more like between a Baron and a King Air. They also will not be targeting the 2-3 hour flight segment, more like :20-1:30. Don't worry about "seats full" data. The airlines are the only ones that care about that. Corporate/charter operators don't care if it is 1 pax or full....it's the same price/hour regardless. (Most of the VLJs seat 5-7 pax).

http://www.eclipseaviation.com/files/pdf/Economics.pdf
 
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