Plane Conversations

Social Flights introduces a common platform for travelers to access private jet inventory.  By decreasing the cost of organizing individual passengers, our partner operators are rewarded with access to groups of people ready to purchase your primary and your empty legs.

Empty legs are created after an airplane delivers passengers to a destination and must then return back to base empty.  The pilots must return to their families and the aircraft must return to service or scheduled maintenance.  The result is that up to 40% of private aircraft flights are empty.  Over the years there have been many attempts to sell empty seats but success rates rarely exceed 5%.

This creation of empty legs increases the cost (to the customer) of private travel to approximately double the one-way cost of their payload.  The resulting high cost of private travel limits the size of the market and the restricts utilization of aircraft for the owners.

It is expensive to deploy a professional sales staff without prequalifying the customer for sufficient resources, frequency of travel, and repeat business.  A high quality sales force is required because aviation is a complex industry and the price of the product can easily exceed 5 digits.

Empty legs are expensive to sell because the passenger does not walk through the door prequalified.  Empty seats are even more expensive to sell because it takes the same amount of time to sell an individual seat as it does the whole plane; and each person and their special need multiplies the level of complexity.  Finally, the FAA is very strict on the operator’s ability to schedule flights making it difficult to advertise empty legs or empty seats.

The economic value of empty legs would be huge if a platform existed that could sell them as primary flights.  Social Flights has combined our expertise in charter operations with social media organization to create exactly such a system.

Social Flights Creates an environment where operators can minimize the cost of selling empty legs by providing a common information platform that engages and educates the traveler so that a sales professional is not needed to manage every deal.  Social Flights uses social media tools and methods to help people self-organize around an operator’s inventory wherever it may be.  Social Flights combines inventory from many operators in many locations to offer travelers a seamless experience.  Social Flights manages contracts, consideration, and payments.

If you are an owner or operator, we’ll show you how to send us your inventory and scheduling feeds at no cost and we’ll do the rest.  As our system grows, we’ll deploy community organizers across the country and among substantial verticals who will bring customers right to your door step so that you can deliver them right to their door step.

Social flights continues to grow as our users finding new ways to integrate private jet service into their experience travel itinerary.  As with most early adopters, there is a larger vision driving their actions – it’s not to be “first on the block” to experience private travel.  They are the “first OFF the block” in a new form of luxury; The Time Value Experience.

Luxury does not mean the same thing for everyone and this poses a challenge for brands and product designers.  The top tier brands are learning that 45-55 year old who make up a large portion of their markets have a different set of standards when it comes to travel.

Instead of wanting to be pampered with exquisite and precision service, the new generation of luxury travel is seeking value, authenticity, and uniqueness.  They want local experiences, not a duplicate of their home in a new place.

“Value Based Driven”

via Young, affluent travelers disavow luxury defined by older generation – Travel Weekly.

Ellen Bettridge, vice president of American Express Retail Travel Network, told agents and hoteliers attending the 2011 International Luxury Travel Market conference in Cannes, France, last month. “They just know more. Everything’s at their fingertips.”

Knowing your customer’s preferences and accommodating those preferences are two different things in hi-end travel.  Creating “value” is not easy, it takes a lot of work, planning, and technical knowledge as well as follow-up and community management.  Unique experiences, by definition,  don’t come with instructions for the service provider. Competition, by definition, attacks the uniqueness of your service.  Alternatives to your service are as easy for competitors to market as for you.

One of the best ways to achieve uniqueness is to use your brand to integrate with other experience services – a local competitor may not be a competitor after all.   Think about Disneyland;  Mickie Mouse does not compete with Pirates of the Caribbean, rather, they are integrated into the whole grand experience.

If your guests will come for one 2 days, they are more likely to stay for 4 than return for another 2. Then, they are more likely to return if they haven’t “done the whole park”.  If they become comfortable with a place, they will return over and over forming new family traditions that they can identify with and share with their friends…..

Chris Sanderson, co-founder of the Future Laboratory, a London-based brand-marketing firm, asserted, “It’s not about ‘fly and flop.’ It’s about ‘find and seek.’” What makes serving this group tricky is that agents can’t fall back on tried-and-true brands, at least when it comes to accommodations. 

Social Flight is capable and available to serve any community by providing operations in public charter and private charter with modern turbine aircraft.  We have a growing clientele of vacation and resort communities banding together and taking control of the tourist experience instead of depending on outside airlines, charter operators, or tour organizers to do it for them.  Make the “Time Value Experience” your Brand image and make Social Flights your airline.

Few people take into account the social value of air transportation.  There are very few studies that can measure the impact on a community when they are immobilized due to lack of a service that had previously been available. There is no true economic category to describe such loss except as a tax on travel.

A regressive tax is taxation that takes a larger percentage from low-income people than from high-income people. A regressive tax is generally a tax that is applied uniformly. This means that it hits lower-income individuals harder. Social Flights can restore this value with a regionalized public jet charter system.

Now we can add “Travel” to the list

Sales taxes that apply to essentials are generally considered to be regressive as well because expenses for food, clothing and shelter tend to make up a higher percentage of a lower income consumer’s overall budget. In this case, even though the tax may be uniform (such as 7% sales tax), lower income consumers are more affected by it because they are less able to afford it.

<via American Eagle to park planes, reduce service – Dallas Business Journal>

The small city gets the regressive travel tax

American Eagle announced that they would reduce frequency in a few select markets, they would discontinued seasonal service from D/FW to Augusta, Ga. Eagle would also discontinued service from Chicago to Tri-Cities, Tenn as well as discontinued service between Miami and Savanna, Ga., and Miami and Fort Myers, Florida.  American Eagle would also hasten the cancellation of Los Angeles-Boise, Chicago-Calgary and D/FW-Fayetteville, N.C., service from Feb. 9 to Jan. 31.

So how many people would these reduction in service decisions impact? If we just add up the populations of the smaller metropolitan area in each city pair, we can estimate economic loss of opportunity under the assumption that the larger city would have alternate options. Fair enough?

Augusta, GA: 556,877

Tri Cities, TN:  500,538

Savanna, GA: 347,611

Ft Meyers, Fl: 618,754

Boise, Id: 616,500

Calgary: 1,230,248

Fayetteville, NC:  366,383

The Creeping Costs

The total is at least 4 million who will lose one more degree of economic freedom.  4 million people will pay a regressive tax denominated in time, money, and dignity in some form or another for the benefit of stockholders in American Eagle. 4 million people will lose the economic benefit of travelers from large cities.

On closer inspection, with the exception of Calgary and Boise, all of these cities are well within 1000 miles of each other.  Each of these cities is well within 1000 miles of cities just as large as those that American Eagle is diminishing service.

While a hub and spoke model may break down economically, a regionalization strategy may work quite well.  It has been proven that people are willing to pay a premium for direct service (otherwise the airlines would not be dropping less profitable indirect service).  It is also obvious that people place a premium on their time and hassle as demonstrated by trends in online shopping, communication, and social organization.

These ingredients simple add up to a regionalization air transportation route structure enabled by online social organization tools such as Social Flights where community airlines can form around community priorities.  Social Flights can restore this value with a regionalized public jet charter system.

National Public Radio recently aired 2 very interesting segments on the airline industry.  The first segment cited companies leaving small cities because of poor air transportation service. The second segment cited an interesting statistic; all of the airlines that existed before the deregulation act of 1978 have gone bankrupt.

But wait, wasn’t airline deregulation supposed to be good for the airlines?  Wasn’t it supposed to spawn innovation and drive economies of scale?  Wasn’t it supposed to increase choices for the airline passenger?

Well, at least one of these impacts is true; deregulation spawned innovation – although probably not the way it was predicted in 1978.  Today, new technologies are appearing everywhere from new forms of social organization to faster and smarter aircraft systems.   This article features a very interesting aircraft sector called the personal sport jet.  While I do not know enough about their actual business model, it would appear that they are aiming where the airlines and major manufacturers simply cannot reach.

With an operating cost of $400 per hour instead of $1200-$2000 per hour in this class, the excel sportjet can deliver a 2 hour jet flight performance in a “regionalization” market.  Social media trends show us that people are connected in shorter distances and far more diverse locations than the hub and spoke system can accomodate.

This aircraft is small, lightweight, and fast.  It uses a single jet engine and flies at a lower altitude reducing pressurization forces and associated cost. The Sport Jet II carries 4 people and employs extensive use of composites in addition to simplified pilot qualification requirements.

Clayton Christensen’s book “The Innovator’s Dilemma” cites numerous now classic examples of how industries are threatened by simple upstarts that deliver what the customer wants at a price they can afford without the complexity and “over-performance” burden that mainstream players evolve into.

While the aviation business is very complicated, it is truly a pleasure to witness new products and innovations that come to market under the radar of the big players.  We hope that they grow to have an impact on the industry.  After all, that is what Social Flights is all about.

Bravo Sport Jet II, Bravo.