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Archive for May, 2009

The next cheap no-frills airline is launched

Friday, May 29th, 2009

jet-america3

How would you like to pay only $9 for your next flight to Florida or Michigan?
Introducing JetAmerica, the newest low-fare, no-frills airline. It’s intriguing marketing pitch – up to 19 seats on every flight for just $9, less than the toll on some highway, and it’s not just an introductory offer, but for as long as the airline is flying, which at this price, I wonder how long before JetAmerica goes the way of Air Florida, ValueJet and the host of other, now defunct, low-cost airlines.
Part of why JetAmerica is able to offer such low fares, is because of federal grant money designed to encourage the use of regional airports. JetAmerica is planning flights from Newark, NJ; Toledo, OH; Minneapolis/St. Paul, MN; Detroit, Lansing, South Bend, MI and Melbourne FL.

Indiana Jones set to rescue aviation

Tuesday, May 19th, 2009

Avid pilot and screen star, Harrison Ford is staring in a new TV spot that highlights the importance of general aviation to our economy. The spots were created by the AOPA (Aircraft Owners and Pilots Association) with a budget of $1.5 million (of which Ford has donated his appearance fee). The spot is hoping to offset the negative fallout that has beset the corporate business aviation ever since the CEOs from Detroit’s top automakers arrived in Washington in their corporate jets to ask for government bailout money.
To the average citizen, this was a prime example of corporate waste and mismanagement. In contrast to us involved in aviation, we understand that this is how aviation can be an effective tool used by top executives to manage their time and resources efficiently.
Let’s face it, corporate America is the bogeyman these days – being characterized as greedy and out-of-touch with mainstream citizens. Think how the AIG bonuses struck a nerve with the average person. Yet it is the height of hypocrisy, when politicians demonize business people, while they continue to use jets to their own travel – case in point, House Speaker Nancy Pelosi, uses large Airforce jets to travel back and forth to California, or President Obama using Airforce One for a short one-hour flight to address a audience on Earth Day.
Here are some important points regarding general aviation’s contribution to our economy:

  • Generates $150 billion for our economy
  • Employs 1.2 million people who pay taxes.
  • Allows business people to conduct commerce outside of the large airport terminal hubs – making them more productive, and bringing commerce to areas outside of the already congested major metropolis cities.

Light Sport Aircraft at the 2009 Sun ‘n Fun Fly-In

Tuesday, May 19th, 2009

Contrary to our current economic conditions, the light sport category of aircraft manufactures were highly represented at this year’s Sun ‘n Fun Fly-In, with over 20 manufacturers on exhibit. I personally looked at almost every one of the light sport aircraft on display and came away as probably most prospective consumers – bewildered!!! There are so many choices available in this category; it is hard for the average pilot to determine what makes one particular manufacturer or model better than the others. In addition, the news regarding the Light Sport category of aircraft has not been very positive of late. There have been some hostile takeovers, cash-strapped manufacturers, and fatalities because of in-flight structural failures.
In this kind of unsettled environment, the manufacture that can project an image of stability, credibility and professionalism can win significant marketshare.
Consider that Cessna has already taken 1,000 orders for its light sport aircraft, the Skycatcher, which I found to a rather under-whelming light sport entry. The fact that Cessna has not yet delivered a single aircraft illustrates that brand recognition and Cessna’s reputation are more than enough to get people to buy their aircraft.
The other top manufacturers in terms of marketshare have done so with effective marketing and PR, in spite of the fact that their aircraft have been described as average, abet this comment made by a competitor who has made few sales, is struggling to raise, and in danger of going out of business.
In many industries, the company with the better mousetrap rarely wins. There are so many examples of inferior products that come to dominate an industry, consider this point if you’re reading this on a Windows computer rather a Mac.
Savvy marketing can generate enough sales to overcome the mediocre product.
Make enough sales and your company gains credibility, stability and awareness of its product. Properly managed, this success begins to feed on itself and continues to build momentum which leads to more sales, product improvements, and higher margins, which leads to greater profits and greater success, which leads to more sales, etc. etc.

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