140 likes | 299 Vues
CLC AGIFORS 2008, 2. . Presentation Outline. VLJ BackgroundWhat are VLJs?Advantages and DisadvantagesCompetitorsTarget MarketMarketing VLJ Air TaxisControllable Variables: the seven
E N D
2. CLC AGIFORS 2008, 2 Presentation Outline VLJ Background
What are VLJs?
Advantages and Disadvantages
Competitors
Target Market
Marketing VLJ Air Taxis
Controllable Variables: the seven Ps
Diffusion Process
Change Management
Challenges
Closing the Delivery Gap
3. CLC AGIFORS 2008, 3 Very Light Jets (VLJs) Weigh less than 10,000 lbs (4540 kgs)
Seat 3 to 6 people
1-2 jet engines
Cruise at 340-420 knots
Operate from short airstrips (3000 ft / 900 m)
Range of 1100 2000 nm
Single pilot operation
Cost $1million to $3 million (Boehmer 2006)
4. CLC AGIFORS 2008, 4 Very Light Jets (VLJs)
5. CLC AGIFORS 2008, 5 Advantages:
Inexpensive to buy and operate
Offers on demand point-to-point service
Utilizes regional airports
More productive use of consumer time
Disadvantages:
Strain on a congested aviation system
Impacts regional airports and the environment
Higher fares than commercial airlines
Possible government user fees and surcharges
Weather problems in certain areas
On-demand scheduling is difficult
6. CLC AGIFORS 2008, 6 Environmental Impact on Regional Airports 70% of domestic commercial air traffic is concentrated at 30 major hub airports (Sharkey 2008)
Over 5,300 regional public-use airports and 19,000 airstrips in the U.S. (Department of Transportation)
85% of the U.S. population lives within 30 minutes of regional airports (Craver 2006)
As many as 16,000 people per day fly out of the regional airports (Loyalka 2005)
VLJs use more fuel per person
High carbon output per passenger mile
7. CLC AGIFORS 2008, 7 DayJet (www.dayjet.com) Currently operating Eclipse in the Southeast
EarthJet (www.earthjet.com) Eclipse operations planned for East Coast
ImagineAir (www.flyimagineair.com) Currently operating Eclipse in the Southeast
JetSet (www.jetsetfractions.com) Eclipse Training flights in Orlando
LinearAir (www.linearair.com) Currently operating Eclipse in the Northeast
MagnumJet (www.magnumjet.com) Adam and Embraer operations planned
Pogo (www.flypogo.com) Eclipse operations planned 2009
Point2Point (www.flyp2p.com) Currently operating charters in the U.S.
SATSAir (www.satsair.com) Cirrus The-Jet planned for Southeast
Yellow Air Taxi (www.flyyellowairtaxi.com) Currently operating Cessna in Southeast
Source: www.very-light-jet.com
U.S. VLJ Air Taxi Competitors
8. CLC AGIFORS 2008, 8 International VLJ Air Taxi Competitors
9. CLC AGIFORS 2008, 9 Target Market: Likely Users of VLJs
10. CLC AGIFORS 2008, 10 Product/Service: Direct, on-demand, air taxi flight, to and from small airports, similar to dial-a-ride. Schedule is dictated by the customer, not the airline.
Place: Current focus on Southeast U.S.
Price: Comparable to full coach or first class fare on a scheduled airline - opportunity cost.
Promotion: To date, limited to publicity in newspapers, web sites, and trade publications for service in North America.
Physical Evidence: Small planes, comfort, design.
People: Pilots, reservation personnel who come into contact with the passenger.
Process: Eliminates or reduces delays, cancellations, and security screening. Marketing: 7 Ps
11. CLC AGIFORS 2008, 11 Marketing: The Diffusion Process Background
OC-ALC MRO Mission
Program Objective
Acquisition Strategy Toby Kaiser
Market Research
PWS Requirements
Risk Assessment
Acquisition Approach
Source Selection Team
Evaluation Criteria
Funding Profile
Contract, Sandra Geib
Contract Type
CLIN Structure
Post Award Management
Incentives
Special
Delegations/Waivers
Summary
Background
OC-ALC MRO Mission
Program Objective
Acquisition Strategy Toby Kaiser
Market Research
PWS Requirements
Risk Assessment
Acquisition Approach
Source Selection Team
Evaluation Criteria
Funding Profile
Contract, Sandra Geib
Contract Type
CLIN Structure
Post Award Management
Incentives
Special
Delegations/Waivers
Summary
12. CLC AGIFORS 2008, 12 1. Creating a sense of urgency - need or want to use VLJ, advantages
2. Coordinating the guiding team - new behavior, new process, new target market
3. Developing the change vision and strategy - benchmark
4. Communicating the change vision - 2 way: text messaging, trade publications, newspaper ads
5. Empowering employees for action - involve stakeholders
6. Producing short-term wins - advantages
7. Generating more change - internal and external factors
8. Creating a new culture - behavior change
Source: Kotters Eight-Step Process for Successful Change (2005) Change Management
13. CLC AGIFORS 2008, 13 Challenges for VLJs Designing and testing this new service
Communicating and maintaining a consistent image
Motivating and sustaining employee commitment
Coordinating marketing, operations, and human resource efforts
Setting prices
Finding a balance between standardization versus personalization
Ensuring the delivery of consistent quality
Balancing capacity constraints (time, labor, equipment and facilities) with demand patterns
Scheduling
14. CLC AGIFORS 2008, 14 Closing the Delivery Gap Despite a hypercompetitive environment, Midwest Airlines proved that small, regional carriers can succeed and even set new standards. Despite a hypercompetitive environment, Midwest Airlines proved that small, regional carriers can succeed and even set new standards.
15. CLC AGIFORS 2008, 15 References Assael, Henry. 1987. Consumer Behavior and Marketing Action. Kent Publishing Company, Boston.
Boehmer, Jay. 2006 (October). Very Light Jets Preparing for Takeoff in the U.S. Business Travel News.
Craver, Martha Lynn. 2006 (February 20). Air Taxis on the Way to Reality. Kiplinger Business Forecasts.
Kotter, John & Rathgeber, Holger. 2005. Our Iceberg is Melting. St. Martins Press. New York, NY.
Loyalka, Michelle Dammon. 2005 (September 19). Your Air Taxi is Almost Ready. Business Week.
Rogers, E. M. & Shoemaker, F. F. 1971. Communication of Innovations: A Cross-Cultural Approach. Free Press. New York, NY.
Sharkey, Joe. 2008 (May 20). Air Taxis Fly Into Financial Turbulence. New York Times.