Avantair thriving in this economic downturn...

[johnsonrod]

This might be the optimal time for Avantair to show off

I think we may actually see a change in how fractional owners view their airplanes and fractional choices in general. Sure, some wealthy people will never care about the money they spend. They will want the biggest and fastest option and not care about the expense. However, this "Great Recession" may impact spending levels among many small-to-midsized businesses and the not-so-super-rich people out there who still prefer private travel.

You never know, but some people who are trading down to the Piaggio may not return to the bigger, faster jet alternatives. It's a comfortable airplane and the share acquisition cost and the fuel efficiency may make a favorable impression on those people who don't have frequent long-haul requirements. Why do you need a Citation XLS or Lear 60 if the majority of your flights are within the Northeast or within the LA-SFO-DEN triangle? A Piaggio has the cabin of a Hawker and its performance does not lag too much behind an XLS on shorter segments. There is negligible time difference between a P180 and an XLS on a flight from TEB-BED or VNY-RNO and yet the difference in per hour and capital (financing on the share) costs is significant. I guess it depends upon the owner's average load and the "typical" mission (and its frequency). I suppose the owner could always charter a bigger airplane with the cost savings if a bigger load was required.

Again, I think Avantair is doing a good job of getting the word out during this recession. Now's the time to show off the fuel efficient and less-pricey Piaggio while potential owners are watching their wallets...

 

[netjetwife]

... I was just correcting your statement that "some of our business has inadvertantly come at the expense of others at the other operators" when in fact, most of your business (80%) has specifically come from other jet operators in the industry. ....

In the interest of fairness, I must correct your correction, JJ. The 80% mentioned in the article refers to new business, not the total amount. Avantair has filled a niche in the market and already had a customer base of their own. Otherwise, they wouldn't still be in business.

 

[NJAowner]

Avantair

For what it is worth, I looked at them for some supplemental lift and when reading their audited financial statements I got concerned. Among other things, their own auditors issued what is called a "going concern opinion" -- stating that in the auditors' opinion the company does not have the ability to continue, financially,without more $$ coming in as equity. Other than some very early stage technology companies with no revenue yet, a very, very, very small percentage of companies that get going concern opinions survive a few years. Yes there are exceptions and I am sure someone will find them. Also, there is a very high number of aircraft shares on the resale market trying to be sold.

A major concern with buying a fraction of a plane is that if something happens to the operator/promotor, how do I and 8-15 people I have never met manage our co-ownership of an expensive asset?

Nothing against Avantair. I thiink the planes look cool, but when you are on the ground they are loud. I can always hear one coming, of flying over the beach in Florida, long before I see it. It has a very distinctive sound.

Good luck Avantair. If you prosper, I do have a need for your aircraft. If NJA flew the Piaggio, I would add a big share and then worry about where I wanted to go.

Fly safe.

 

[QOL_is_great:)]

a simple thank you

We're taken care of pretty nicely by the management. There's no "butting of heads" like can happen at other operators sometimes. Noone is getting taken advantage of here. We had to tighten the belts a little while back, and the cost-cutting measures worked wonderfully! It's interesting that you bring up "Avantair families"... I've got more confidence that I'll be able to provide for my 4 year-old than I've ever had. (In an aviation job... how about that!) However, nobody at our company- pilots, management, admin, maintainence, or whatever is happy that some of our business has inadvertantly come at the expense of others at the other operators. Some people will say "that's just the nature of doing business", but it's kind of different in the Fractional industry. There are enough well-off folks for everyone. I've written before that if we can just ride out the current economic conditions for a little while longer, things will return to being good for everyone. I still believe that, and also believe thay 2010 will be a return to prosperity for everyone.

It is just business and it's the American way. It's their choice to decide which operator works best for them and their pocket/wallet.

That said, you should ALWAYS make a point to thank that owner for their business. Thank them because you know they have a choice in who they buy into for aircraft ownship. It makes them smile and know you appreciate their business.

Good luck guy/gals at Avantair!! Happy times for ya!!

 

[HazMat]

Nja owner you are looking at old financials AvantAir has a clean opinion from it's auditors and last quarter was profitable. We have also been around for 6 years so I really don't understand your survival statement. Many extremelly happy owners here. I had one tell me last week he feels dumb for not switching a year ago. He would have saved over 100 grand and not missed a beat. What seems to be selling is the axis program it works like a fractional share without the risk of ownership. Just out of curiousity what type of opinion does NetJets have from their auditors?

 

[johnsonrod]

You never know in aviation but keep in mind that Avantair "should" be more profitable as it grows its fleet with the network effect. It will have more aircraft available for flights and require fewer expensive reposition/non-revenue flights. Obviously starting up any fractional with a small number of airplanes initially can lead to several early-year losses - that's not a surprise. The fact that the Piaggio is super-popular among share owners and other potential owners during these dark economic times says a lot about the product.

 

[BoilerUP]

I just can't believe over $2800 per block hour is "cheap"...

 

[doh]

I am very happy to hear you are doing well! C425 was in my CRJ class at Comair, and I know he is happy as a clam at Avantair. There are a few other of my fellow regional refugees with you as well. Keep up the great work!:beer:

 

[glasspilot]

I just can't believe over $2800 per block hour is "cheap"...

No, it's flight hour...so it's quite reasonable.

 

[BoilerUP]

No, it's flight hour...so it's quite reasonable.

My mistake in flight vs. block hour...but obviously "quite reasonable" is relative...