DayJet Corporation to Provide Nation’s First Per-Seat, On-Demand Jet Service
Breakthrough Technology and Approach to Enable Affordable
On-Demand Jet Service – You Pay Only for the Seat You Use;
Service Will Restore Day Trips in Small Regional Markets
DELRAY BEACH, FL – April 25, 2005 – DayJet™ Corporation today outlined plans to operate the nation’s first “Per-Seat, On-Demand” jet service to transform the regional business travel experience. DayJet will be first to combine a new-generation of very light jet (VLJ) aircraft with
its own real-time operations system to make what was once an elite mode of transportation (on-demand jet travel) broadly affordable and available on a “per-seat” basis, uniquely tailored to each passenger’s individual schedule and priced only slightly higher than full- fare coach airfares.
DayJet president and CEO Edward Iacobucci, a prominent high-tech entrepreneur, today announced initial details behind the company’s service, enabling technology, and purchase agreement for Eclipse 500 aircraft in a joint webcast with Vern Raburn, president and CEO of
Eclipse Aviation Corporation. In a separate announcement, DayJet today also unveiled its management team, board of directors and funding.
DayJet’s “Per-Seat, On-Demand” jet service will make the conve nience of corporate jet travel broadly available and affordable for more people and organizations, turning wasted travel time into valuable business and personal time. “Per-Seat” means you only pay for the seat(s) you
reserve, not the whole aircraft. “On-Demand” means you fly where and when it is convenient for you.
“We are at the threshold of a new era in aviation that will redefine regional transportation. Innovations in small jet aircraft combined with advances in computing technologies will enable a personalized air transportation network that promises to end the dilemma of 400- mile drives with
overnight stays or hub changes and layovers,” stated Iacobucci. “To make this promise a reality, DayJet has brought together the aircraft fleet, aviation expertise, computational skills and entrepreneurial drive that will deliver the world’s first ‘Per-Seat, On-Demand’ jet service. Starting next year, we plan to give business travelers the experience of truly efficient regional travel where business is conducted in a day, productivity is increased and personal time restored.”
Order for Eclipse Jets
DayJet Corporation also announced today that in July 2002, it signed a long-term agreement with Eclipse Aviation, the leading manufacturer of a new generation of VLJ aircraft, for the purchase of Eclipse 500 jets. The first 24 months of the five- year agreement includes firm orders for 239
Eclipse 500 aircraft and options to purchase 70 additional aircraft. Deliveries will begin shortly after the Eclipse 500 receives FAA certification, which is on track to occur in March 2006.
“The ‘Per-Seat, On-Demand’ opportunity is significant, and DayJet’s strategy to leverage technology to create a scalable, on-demand transportation service positions the company to be a leader in this dynamic market,” said Raburn. “Ed’s deep background in both technology and
aviation gives him a compelling advantage – the vision to imagine a new future for regional air transportation, and the real- life operations, logistics and service expertise required to make it happen. We are very excited to supply the fleet of next-generation aircraft that will enable DayJet to transform the regional business air travel experience.”
Service to Operate Under Existing FAA Regulations
DayJet Corporation has been working closely with the FAA and other government authorities to ensure its “Per-Seat, On-Demand” services will comply with all applicable regulations and safety standards, and operate within the national airspace infrastructure. DayJet will operate and maintain its own fleet of Eclipse 500 aircraft in accordance with existing FAA Part 135 on-demand regulations, subject to receipt of the necessary government operating authority.
Each seat aboard DayJet’s aircraft will be individually negotiated and customized to the needs of each and every customer. The customer will select the origin and destination airports, the time they want to “depart no earlier than,” and the time they want to “arrive no later than” at their
destination. DayJet will not publish schedules for its service, nor will it operate on a schedule other than the customer’s.
A Transformative Market Opportunity
DayJet Corporation is built from the ground up to offer scalable, on-demand transportation services to hard-to-reach regional markets that have limited, if any, scheduled airline service today. By offering its services on a “Per-Seat,” shared-ride basis at prices that are only slightly higher than full- fare coach, DayJet will make on-demand air transportation a practical and affordable option for those road warriors who need the productivity gains the most: field sales forces, operations managers, business development managers, and other mid- level managers
whose productivity drives the top- line performance of their organizations.
“A new ‘Per-Seat, On-Demand’ model would enable business travelers to more easily reach manufacturing plants, suppliers or partners in obscure locations that are difficult to reach using traditional airlines,” said Harvard Business School Professor Clayton Christensen, who explored the topic in his book Seeing What’s Next. “Introducing an innovation such as this – one that would build to demand – must come from a CEO who has used emergent strategy processes to create a new- market disruption in another service business. It will require an outside perspective to enact this type of disruptive innovation in the aviation industry.”
Satisfies Pent-up Demand of Business Travelers
Eighty-four percent of the 405 million annual U.S. business trips taken during 2004 were regional, and 80 percent of these were by car. The number of people driving 200 to 400 miles for business has increased 25 percent during the past three years (DOT, 2004). As part of its extensive research and development efforts, DayJet Corporation has interviewed
hundreds of business travelers and corporate managers across 20 focus groups in nine states to gain a first- hand understanding of regional business travel frustrations and priorities. This research reveals a strong, latent demand for convenient “Per-Seat, On-Demand” jet services.
Typical of the focus group responses is this comment from William Downey, advertising director for a regional publishing company:
“DayJet on-demand jet service holds strong appeal for its ability to turn wasted travel time into valuable business and personal time. To me, the value of time is defined as: can I drop my son off at school in the morning, get to the airport, make my trip, and be back in the evening to see his basketball game? DayJet will allow me to use my time more efficiently, so I can meet all my travel demands yet still be at home in the evening. I hope to benefit from DayJet both professionally and personally, and I’m looking forward to giving it a try once it’s in my market.”
Enabled Through New Field of Real-Time Technology
For the past three years, DayJet Corporation has been engaged in pioneering research in a new field of logistics to real-time optimization. During the same period, the company has been implementing these logistics breakthroughs in an operational infrastructure necessary to run a
large-scale “Per-Seat, On-Demand” jet service. When coupled with the reduced acquisition and operating costs of new VLJ aircraft, DayJet will
achieve the breakthrough value proposition that is necessary to address the needs of the regional business traveler. The company believes that the VLJ price points in conjunction with the “traditional” air taxi model alone are not sufficient to drive down the cost of on-demand jet travel enough to enable significant market expansion. Today, less than five percent of U.S. travelers reap the benefits of on-demand air transportation through corporate jets, fractional ownership programs, hourly membership cards or traditional air charter/air taxi services.
“The key to making the ‘Per-Seat, On-Demand’ model work is leveraging advanced optimization technology to match the ever-changing supply and demand in real- time. Ironically, it’s like flying itself: Millions of tiny adjustments over time keep the whole system on track,” said Esther Dyson, founder of Flight School and editor of Release 1.0 for CNET Networks. “What’s exciting is being able to offer on-demand jet service in the ‘long tails’ of the market between less-traveled city pairs where jet travel is currently unavailable or too expensive for ‘normal people.’ DayJet
brings one-to-one service to air travel just as the Internet has brought one-to-one applications to so many other markets.”
DayJet’s real-time operations system encompasses the necessary dispatching, integrated planning and optimization tools to make real-time, automated decisions on a large-scale basis. This proprietary infrastructure will allow DayJet to efficiently serve sparse demand in outlying “tails”
of the market, while driving its cost of services down, making on-demand jet travel broadly available and affordable on a “Per-Seat” basis for most business travelers.
DayJet’s real-time operations system has been tested for more than a year and will be ready for operation when the first aircraft roll off Eclipse’s production line.
Taking Flight in 2006
DayJet Corporation expects to launch service mid-year 2006 to select markets soon after it takes delivery of its first Eclipse 500 aircraft, and subject to receipt of the necessary government operating authority. The company plans to serve more than 35 markets with “Per-Seat, On- Demand” service by the end of its second year of operations.
About DayJet Corporation
Founded by prominent high-tech entrepreneur Ed Iacobucci, DayJet Corporation is the pioneer of a new type of regional travel: “Per-Seat, On-Demand” jet service tailored to the passenger’s individual schedule and priced only slightly higher than full- fare coach airfares. Headquartered
in Delray Beach, Florida, DayJet has developed this new industry’s first real-time operations system. Combined with the speed and efficiency of new-generation small jet aircraft, DayJet has created the next major advance in regional business travel. For more information visit
www.DayJet.com.
Monday, April 25, 2005
Tuesday, February 22, 2005
Here is an Economic Handbook avaialable for download.
The table of contents and the first chapter is included.
For further interest - email me at Taggart2@aol.com
Instant Economics
Memos to Clarify the Topic
© Rolf Clark
Introduction
These memos will help the reader understand economics. The typical reader would be an executive who is not a trained economist, but would like a better understanding of the subject.
Most important economic principles are covered, in minimum reading time. That is, each memo is brief. This saves the reader time without omitting important content. While not all economic topics are discussed, they have been filtered to provide an efficient and effective coverage.
Each memo is written to stand on its own. Reference to other memos is avoided. While this leads to some repetition, it is an advantage as it reviews some principles in different contexts, thereby reinforcing understanding. And, while there is a deliberate order to the memos, they need not be read in order.The intent is to provide economic concepts such as those discussed in newspapers or commented on by television’s “talking heads”. More important, the reader will be able to generate original thoughts on economic issues. Thought generation is a skill far beyond understanding what someone else is saying. That is why principles are stressed over facts. Principles are the building blocks of thought generation.
Contents
Introduction 5
Why we need economic insights—the early 2000's 7
Ways to measure the economy 9
A Market System 11
Supply and demand 13
The difference between savings and investment 15
Externalities 16
Government spending 17
Regulation and taxes 18
What is "The Debt" 19
Government debt and private debt 20
Gross Domestic Product 21
Constant versus current dollars 23
GDP, potential and actual 24
How to impact potential GDP 26
Ways to impact actual GDP: Fiscal and monetary policy 27
How banking works 29
The Fed 30
Monetary policy reinforces, fiscal policy counteracts 31
Trade surpluses and deficits 32
Comparative advantage 33
Increasing exports: Another way to raise GDP 35
Exchange rates 36
Unavoidable linkages: Trade deficits, government balances 38
Inflation, interest rates and exchange rates 41
Fixed exchange rates 43
A 1970s example -- The US abandons the Gold Standard 45
What is money? 47
Long- and short-term interest rates 49
More on interest rates 51
Price/earnings ratios and interest rates 53
Price/earnings and growth 54
Leverage 55
Inflation vs. changing inflation 56
Deflation can be nasty stuff 58
Factors that hurt a country’s finances 60
When banking is a problem 61
Currency crises due to speculation 62
Productivity loss and monetary devaluations 63
Investment and developing economies 64
Systems talk 65
Microeconomics and macroeconomics: Different topics 67
The “Tragedy of the Commons” 69
Don’t expect predictability 70
Oil dynamics 72
The investment food chain 73
Accelerators 75
Some dynamic examples 78
Moral hazard 80
The powerful market system 81
Principles of the market system 82
The time dimension 84
Principles involving returns 85
Productivity and the workings of the modern firm 87
Information Age products 89
Information Age firms vs. Industrial Age firms 91
Increasing returns 94
Finances in the New Economy 95
Elasticity, an important concept 96
Productivity 97
Transaction costs 98
Expected value and risk 99
Why we need economic insights—the early 2000's
The American economy in the early years of the 21st century showed how complex economics can be. In the 1990's the economy had been strong. There had been high employment, low inflation, a rising stock market, and strong national economic growth. When the (George W.) Bush administration took over in 2001, things seemed to go awry. The stock market fell severely, unemployment rose, and growth slowed severely. Inflation stayed low, low enough to almost cause deflation, a condition that can be very damaging.
This economic reversal had essentially nothing to do with the change in administration, but rather resulted from economic dynamics already in place. The rise in stock values during the latter half of the 1990's had been excessive. People felt relatively rich, so they bought extravagantly and saved little. They did not need to save, for the values of their real and financial assets had been rising rapidly with the housing and stock markets, and jobs were plentiful.
When the financial bubble burst in 2000 and 2001, net worth suddenly fell. Consequently spending was reduced, and that lead toward recession.
The Bush administration tried to restart the economy. In 2001 the government was still running a surplus, so a tax cut seemed a good idea. The tax cut would let workers spend more, helping gross domestic product grow. But a tax cut would also reduce the government surplus. Meanwhile spending for defense and home security after 9/11 increased, eroding the surplus. Soon there were government deficits instead of surpluses. Deficits lead to a larger federal debt and therefore to higher interest payments. The higher interest payments lead to larger deficits. Thus lower taxes do not seem a foolproof solution to a recession.
If tax cuts aren’t the answer perhaps lower interest rates are. Lower interest rates encourage businesses to invest in new plant and equipment, leading to more jobs and a boost to the economy. But in the early 2000's interest rates were already low. They were low because the economy was weak and when the economy is weak corporations do not borrow money to increase capacity. Thus even lower interest rates did not raise business investment. Monetary policy (the Fed lowering interest rates) seemed no more effective in helping the economy than did tax policy.
Even if business investment stayed low surely consumers would buy things if interest rates were low enough. In the early 2000's consumers did indeed buy. They bought lots of cars at zero interest rates. But that added to consumer debt, for even at zero interest there is still a new loan when buying a $25,000 car. That is, private debt increased. Furthermore a glut of sudden buying could lower demand (for cars say) two or three years later.
Similarly, housing purchases increased when interest rates fell, as monthly payments became lower. But house buying again means more private debt. Just about the time the federal surplus was turning to a deficit, private household savings also turned negative. Private savings had averaged about plus 2 percent of GDP from 1960 to 1996, but were minus 6 percent by year 2000.[1] The government and the private sector were going into debt together. This larger national debt meant more would be spent paying interest costs, a significant part of which goes to foreign lenders. Foreigners spend less on US goods than Americans do and that means fewer US jobs.
Another dynamic occurred at the same time. Housing prices had risen steeply by the early 2000’s. Rising personal wealth and low interest costs had made housing seem affordable and prices were bid upward. In 2002 one major newspaper headlined, "When will the real estate market crash?"[2] The article stated that house prices had recently gone up by 40 percent. Meanwhile inflation was almost negligible. If the housing bubble were to burst the falling house prices might lead to deflation, a real concern during that period. Deflation leads to falling wages while debts remain fixed. People then feel less wealthy, and reduce spending. That hurts the economy.
Again, lowering the interest rates did not necessarily seem better policy than lowering taxes. Slight wonder the Bush administration was having trouble fixing the economy: The normal policy tools did not seem to work.
The government could certainly help the economy in the short term by spending more on government purchases, by increasing defense spending for example, or by building roads and bridges. Such expenditures create jobs. But they also lead to more deficits. The nation accumulates yet more debt. A nation in excessive debt has difficulty regenerating growth.
The message that should be taken from these dynamics is that “The Economy” is complex. Simple answers such as "reduce taxes to help the economy", or "lower interest rates to help the economy", or "increase government spending to fix the economy", are too simplistic. Almost any policy change has feedbacks that counteract the policy intention. A person discussing the economy needs to become aware of these feedback dynamics. The following memos are meant to generate such awareness for investors, executives, and interested consumers.
[1] For example, see The Economist, January 26th 2002, pages 22-24.
[2] San Francisco Examiner, July 5, 2002
The table of contents and the first chapter is included.
For further interest - email me at Taggart2@aol.com
Instant Economics
Memos to Clarify the Topic
© Rolf Clark
Introduction
These memos will help the reader understand economics. The typical reader would be an executive who is not a trained economist, but would like a better understanding of the subject.
Most important economic principles are covered, in minimum reading time. That is, each memo is brief. This saves the reader time without omitting important content. While not all economic topics are discussed, they have been filtered to provide an efficient and effective coverage.
Each memo is written to stand on its own. Reference to other memos is avoided. While this leads to some repetition, it is an advantage as it reviews some principles in different contexts, thereby reinforcing understanding. And, while there is a deliberate order to the memos, they need not be read in order.The intent is to provide economic concepts such as those discussed in newspapers or commented on by television’s “talking heads”. More important, the reader will be able to generate original thoughts on economic issues. Thought generation is a skill far beyond understanding what someone else is saying. That is why principles are stressed over facts. Principles are the building blocks of thought generation.
Contents
Introduction 5
Why we need economic insights—the early 2000's 7
Ways to measure the economy 9
A Market System 11
Supply and demand 13
The difference between savings and investment 15
Externalities 16
Government spending 17
Regulation and taxes 18
What is "The Debt" 19
Government debt and private debt 20
Gross Domestic Product 21
Constant versus current dollars 23
GDP, potential and actual 24
How to impact potential GDP 26
Ways to impact actual GDP: Fiscal and monetary policy 27
How banking works 29
The Fed 30
Monetary policy reinforces, fiscal policy counteracts 31
Trade surpluses and deficits 32
Comparative advantage 33
Increasing exports: Another way to raise GDP 35
Exchange rates 36
Unavoidable linkages: Trade deficits, government balances 38
Inflation, interest rates and exchange rates 41
Fixed exchange rates 43
A 1970s example -- The US abandons the Gold Standard 45
What is money? 47
Long- and short-term interest rates 49
More on interest rates 51
Price/earnings ratios and interest rates 53
Price/earnings and growth 54
Leverage 55
Inflation vs. changing inflation 56
Deflation can be nasty stuff 58
Factors that hurt a country’s finances 60
When banking is a problem 61
Currency crises due to speculation 62
Productivity loss and monetary devaluations 63
Investment and developing economies 64
Systems talk 65
Microeconomics and macroeconomics: Different topics 67
The “Tragedy of the Commons” 69
Don’t expect predictability 70
Oil dynamics 72
The investment food chain 73
Accelerators 75
Some dynamic examples 78
Moral hazard 80
The powerful market system 81
Principles of the market system 82
The time dimension 84
Principles involving returns 85
Productivity and the workings of the modern firm 87
Information Age products 89
Information Age firms vs. Industrial Age firms 91
Increasing returns 94
Finances in the New Economy 95
Elasticity, an important concept 96
Productivity 97
Transaction costs 98
Expected value and risk 99
Why we need economic insights—the early 2000's
The American economy in the early years of the 21st century showed how complex economics can be. In the 1990's the economy had been strong. There had been high employment, low inflation, a rising stock market, and strong national economic growth. When the (George W.) Bush administration took over in 2001, things seemed to go awry. The stock market fell severely, unemployment rose, and growth slowed severely. Inflation stayed low, low enough to almost cause deflation, a condition that can be very damaging.
This economic reversal had essentially nothing to do with the change in administration, but rather resulted from economic dynamics already in place. The rise in stock values during the latter half of the 1990's had been excessive. People felt relatively rich, so they bought extravagantly and saved little. They did not need to save, for the values of their real and financial assets had been rising rapidly with the housing and stock markets, and jobs were plentiful.
When the financial bubble burst in 2000 and 2001, net worth suddenly fell. Consequently spending was reduced, and that lead toward recession.
The Bush administration tried to restart the economy. In 2001 the government was still running a surplus, so a tax cut seemed a good idea. The tax cut would let workers spend more, helping gross domestic product grow. But a tax cut would also reduce the government surplus. Meanwhile spending for defense and home security after 9/11 increased, eroding the surplus. Soon there were government deficits instead of surpluses. Deficits lead to a larger federal debt and therefore to higher interest payments. The higher interest payments lead to larger deficits. Thus lower taxes do not seem a foolproof solution to a recession.
If tax cuts aren’t the answer perhaps lower interest rates are. Lower interest rates encourage businesses to invest in new plant and equipment, leading to more jobs and a boost to the economy. But in the early 2000's interest rates were already low. They were low because the economy was weak and when the economy is weak corporations do not borrow money to increase capacity. Thus even lower interest rates did not raise business investment. Monetary policy (the Fed lowering interest rates) seemed no more effective in helping the economy than did tax policy.
Even if business investment stayed low surely consumers would buy things if interest rates were low enough. In the early 2000's consumers did indeed buy. They bought lots of cars at zero interest rates. But that added to consumer debt, for even at zero interest there is still a new loan when buying a $25,000 car. That is, private debt increased. Furthermore a glut of sudden buying could lower demand (for cars say) two or three years later.
Similarly, housing purchases increased when interest rates fell, as monthly payments became lower. But house buying again means more private debt. Just about the time the federal surplus was turning to a deficit, private household savings also turned negative. Private savings had averaged about plus 2 percent of GDP from 1960 to 1996, but were minus 6 percent by year 2000.[1] The government and the private sector were going into debt together. This larger national debt meant more would be spent paying interest costs, a significant part of which goes to foreign lenders. Foreigners spend less on US goods than Americans do and that means fewer US jobs.
Another dynamic occurred at the same time. Housing prices had risen steeply by the early 2000’s. Rising personal wealth and low interest costs had made housing seem affordable and prices were bid upward. In 2002 one major newspaper headlined, "When will the real estate market crash?"[2] The article stated that house prices had recently gone up by 40 percent. Meanwhile inflation was almost negligible. If the housing bubble were to burst the falling house prices might lead to deflation, a real concern during that period. Deflation leads to falling wages while debts remain fixed. People then feel less wealthy, and reduce spending. That hurts the economy.
Again, lowering the interest rates did not necessarily seem better policy than lowering taxes. Slight wonder the Bush administration was having trouble fixing the economy: The normal policy tools did not seem to work.
The government could certainly help the economy in the short term by spending more on government purchases, by increasing defense spending for example, or by building roads and bridges. Such expenditures create jobs. But they also lead to more deficits. The nation accumulates yet more debt. A nation in excessive debt has difficulty regenerating growth.
The message that should be taken from these dynamics is that “The Economy” is complex. Simple answers such as "reduce taxes to help the economy", or "lower interest rates to help the economy", or "increase government spending to fix the economy", are too simplistic. Almost any policy change has feedbacks that counteract the policy intention. A person discussing the economy needs to become aware of these feedback dynamics. The following memos are meant to generate such awareness for investors, executives, and interested consumers.
[1] For example, see The Economist, January 26th 2002, pages 22-24.
[2] San Francisco Examiner, July 5, 2002
Friday, February 18, 2005
About My Website
www.GeoSteppes.com
This is the website of a modern day Cartographer thrown into the business world.
Classically trained in GIS with a M.S. from George Mason University and a B.A. from Penn State University in Communications, over the course of my journeyman's career I have wandered through positions in government, news agencies, consulting corporations and rogue start ups.
The hard-earned working theory I have developed is simple. In life, communication is hard work. In business, effective communication is critical. GIS provides a structured path for the visual communication of complex business data and ideas through geo-spatial analysis and display.
Unfortunately, GIS is hard work too. It isn't easy turning millions of records in a database no one can use ... into a clear picture of your business everyone can understand, but its good work if you can get it.
Part art and part science, GIS is the visual display and analysis of spatial data. It applies to marketing, business intelligence, site selection, environmental impact studies, fleet routing, customer retention, sales territory alignments, demand modeling and just about anything you'd want to see on a map to make the right business decision.
Hence, GeoSteppes are the successive, tiered steps to geographic analysis, with the words and skill of a wandering journeyman cartographer as your guide.
Leave me a note if you need some help along the road of GeoSteppes.
- Sinam Al-Khafaji
Cartographer & Market Planner
This is the website of a modern day Cartographer thrown into the business world.
Classically trained in GIS with a M.S. from George Mason University and a B.A. from Penn State University in Communications, over the course of my journeyman's career I have wandered through positions in government, news agencies, consulting corporations and rogue start ups.
The hard-earned working theory I have developed is simple. In life, communication is hard work. In business, effective communication is critical. GIS provides a structured path for the visual communication of complex business data and ideas through geo-spatial analysis and display.
Unfortunately, GIS is hard work too. It isn't easy turning millions of records in a database no one can use ... into a clear picture of your business everyone can understand, but its good work if you can get it.
Part art and part science, GIS is the visual display and analysis of spatial data. It applies to marketing, business intelligence, site selection, environmental impact studies, fleet routing, customer retention, sales territory alignments, demand modeling and just about anything you'd want to see on a map to make the right business decision.
Hence, GeoSteppes are the successive, tiered steps to geographic analysis, with the words and skill of a wandering journeyman cartographer as your guide.
Leave me a note if you need some help along the road of GeoSteppes.
- Sinam Al-Khafaji
Cartographer & Market Planner
Wednesday, January 26, 2005
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