RSS

What Do We Really Know About BizAv?

This entry was posted on Apr 01 2011 by Jon Anne Doty
“1500 years ago, everybody knew that the Earth was the center of the universe. 500 years ago, everybody knew that the Earth was flat. And 15 minutes ago, you knew that people were alone on this planet. Imagine what you’ll know tomorrow.”   -Agent K 
 
In his blog “If You Don’t Read This, You’re Going To Die,” Mike Figliuolo reminds us that we don’t know everything, even if we think we do. 
 
“As we get more senior in our organizations, we get a lot smarter. Our wisdom grows. We understand the business better than those around us. Newfangled management ideas come and go but we’re now wise enough to believe we know everything we already need to know.
 
Then – WHAM! The world smacks us upside the head with a powerful “didn’t know that, didja?” Your business is in turmoil. Chaos. Confusion. Cows raining from the sky. Armageddon.”

Maybe this most recent economic crisis wasn’t Armageddon, but I think I saw a Guernsey or two fall somewhere over central Mississippi.

The technology and practices of our industrial world are changing at a mind-boggling pace.  Since we started blogging just over a year ago, the advancements have been staggering, allowing us to begin developing a “wouldn’t-it-be-cool-if” idea into a “isn’t-it-be-incredible-that” reality.  However, if we had kept believing that we already knew it all, we would still be sitting on the porch, whittling, rocking in our chairs and wishing for a brighter reality. 

This Big Idea is a gamble, to be sure; Big Ideas always are.  But, to take our industry into its next great phase, we must accept that, “There are more things in heaven and earth, Horatio, Than are dreamt of in your philosophy.” We must reject bad managerial habits that keep us trapped in a paradigm which ceased to be profitable years ago.  Aircraft operators are frustrated by rising fuel prices, rising training costs, rising salary and benefits costs.  Equipment is getting older.  Remaining competitive means newer equipment, higher standards and better practices.  Meanwhile, many charter brokers insist on lower pricing, sometimes to the point of incorrectly educating the end-user on the actual cost of operating aircraft to the highest standards.  Sadly, even some operators have been willing to operate below cost just to produce the cash flow.  Reputable operators know what it costs to run a quality operation.  Reputable brokers also know this and are willing to support the operators’ reasonable pricing structures to their own clients.  But I digress.  My point is this: charter operators are frustrated with rates which are not keeping pace with rising costs.  Even with this frustration, we hamstring ourselves by acting conservatively out of fear of making mistakes and by avoiding anything new until it’s better understood.  Neither habit is bad altogether, but the over-application of either of them can be deadly. 

As I discussed the Big Idea with a few operators this week, I was discouraged at the response of many of them.  If the Idea is flawed, I would expect rejection and would hope that someone would point out the fatal flaw; but, that’s not why it was rejected.  Their rejection of the Idea stemmed from “I’ve never thought of that” and “We’ve never done it that way before,” not from the Idea’s merits or demerits.  It’s one thing for an industry to suffer or fail due to catastrophic and unforeseen market changes, but that isn’t the case here.  The market has been changing for at least the last 10 years.  As operators and brokers began aggressively selling one-way trips, introducing our product to a wider audience, the market has been changing.  As the global economy was reeling, our market changed further with more aggressive pricing, air taxi services, and ride sharing.  I often here people lamenting the loss of the “good old days.”  Let’s face it: the good old days weren’t all that great either.  We still struggled.  We still worked on narrow margins.  I don’t think we worked any less hard, but maybe we worked a little less creatively.

While we’ve gotten more creative, it’s time for us to make a big creative leap now.  Sharing flights is a creative way to broaden our market.  Using social technology to share those flights is a creative way to work smarter.  It’s the next Big Idea.

So, yes, 150 years ago, everybody knew man couldn’t fly.  70 years ago, everybody knew that supersonic flight was deadly.  And 15 minutes ago, you knew that shared flights would never work.   Once we accept that we don’t know our market as well as we think we do, we allow ourselves to adapt our industry to the new marketplace.  When we use social innovations like Social Flights to tap into that new marketplace, we broaden our reach.

If we can learn all of that today, embrace the Big Idea of flying socially, imagine what we’ll know tomorrow.

Click on pen to Use a Highlighter on this page
Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay
  • LinkedIn
  • Twitter
  • Yahoo! Buzz


11 Responses to “What Do We Really Know About BizAv?”

  1. Hi Jon Anne,
    well you’re right. The first steps for a new Big Idea is a very bumpy ride.
    I know a revolutionary Big Idea (not an advancement of some items, or bringing something just online), but they can’t get it in the air. There is a massive finance problem to archive the needed capital for the launch.

    It’s hard, because investors e.g. can’t ask someone if they are right, it’s new, it’s different and a market which is not known deeply… (there are several big ans smal EU and US operators and end-customers, who gave their very positive statements to this idea, they would change their way imediatly… but it seems to be not enough reason for an invest)

    And by the way, “Social Flights” is not new, there are several companies online since years, trying to make the same, to make the business more efficient, more accessable, but with no viewable success. Just think about to try to find 8 people for a flight, which is scheduled (!), and in the same direction. You will loose the eternal benefits of BizAv, flexebility and privacy.


  2. Thanks for your comments, Oliver. You’re right, the basic concept of Social Flights isn’t new. What is new is that social technology has evolved to the point where passengers can find each other and set their own itineraries (when the groups set the itinerary, it’s not a scheduled flight). The market for BizAv has changed remarkably since I began my private aviation career some dozen years ago. There were very few brokers, empty legs were largely ignored and, except in the cases of corporate shuttles, people didn’t share flights. Now, there are brokers on every block, empty legs are the Holy Grail of the industry and consumers realize that private aviation is a commodity that can be shopped and that, if they share the costs, they can enjoy more of the high life. Sure, there are still those consumers who treasure the privacy and are unwilling to give that up. Great! Those are the consumers who helped build our industry. However, the pool of those consumers isn’t growing quickly and is becoming more price sensitive. Fact – costs are rising. Charter rates are near or already at what the market will bear. To survive, operators are going to have to create innovative solutions. Social Flights is one and while there have been similar attempts to share flights, to my knowledge, there has been no other program using social technology to allow the market to self-aggregate. Will it work? We will see. But, the effort reminds me of a Wayne Gretzky quote, ” You miss 100% of the shots you never take.”


  1. 9 Trackback(s)

  2. Beth Humble
  3. Mark Jones Jr.
  4. Paula Williams
  5. Wheels Up
  6. JDeragon
  7. Social Flights
  8. Social Flights
  9. OK3AIR
  10. Renaissance Jet

Post a Comment