Aviation Marketing Intelligence

Nothing makes a small air charter firm go a little whacky like the opportunity to pitch an aircraft owner. Much like those who fail to understand the basic tenets of proper courtship, the reality is that being too eager rarely leads to a second date.

We’ve all made the mistake of seeing that airplane as “the one we really really need,” rather than one we’d simply like.

And there begins one of the horribly flawed dynamics of the Part 135 industry: We need this guy so bad, that we put up with him - to keep his plane on our certificate. No one creates a monster the way we do. We are, after all, really good at spoiling people - it is our nature.

I Need You So Bad

But you have to ask yourself, “What do I want my relationships to be like - servile, or egalitarian?” How many times have you seen a friend, who is not so lucky in love, go crazy over rejection when prospect “X” loses interest, doesn’ t return calls - which only makes your friend’s neediness grow to the point where it becomes a major annoyance?

It might be a ridiculous stretch, but if you really think about it….the Part 135 industry is partly composed of pilots who sprout their entrepreneur wings and wander right into this quagmire.

They pull the CEO, owner, prospect aside and whisper, “Hey, if you bought one of these things, we could do trips in it … you know.. to offset costs… yeah, you’d be surprised at what your accountant says, let’s do it.”

You’ve Seen This Before

Imagine if you began dating someone you really liked, found attractive and really cared about. You were downright smitten.

But before you began dating, they made it clear that they (your new honey!) could change their schedule at the last minute (pull the airplane from a booked charter), but when they made a date with you, they would often (at the last minute) change the schedule.

While not exactly related, you can see this with all the “holds” placed on aircraft. In what industry can you block availability without paying? And who suggested, “Oh.. sir.. would you like to put a hold on it?” What nitwit let that dragon out of the cage?

The hold effectively caused crazy after effects, like: “Your quote is $34,245.00, subject to owner approval.” (Because we can’t really guarantee availability, because the owner is - despite his success and wealth - wildly unpredictable and irrational, but is $34,245.00 good enough for you to at least start making lots of phone calls back and forth to each other?)

Why do we let prices out the door that we can’t honor? Great question. Some of the most notorious of this practice are surprisingly large firms.

Such mysteries I put it in the same category as “Why do Lear 60 windows cost 10 times what Boeing 737 windows cost?” (Stay tuned for a post on “the myth of affordable air taxi” and how these pricey windows are highly revealing of our obstacles.)
Imagine Partners

Imagine having 5 aircraft owners owning the five aircraft in your fleet. Everyone one of them held charter revenue in the highest regard and saw you as the key player. They offered their schedule months in advance, and never expressed a desire in bumping a charter, since revenue (to them) was king. And you flew each one of their planes, a lot.

When they weren’t busy amassing their children’s fortune, they spent the time to thoughtfully refer repeating clients to you, not simply because they wanted hours (income) on their plane, but because they actually believed you were one of the best Part 135 folks out there.

They saw the health and the bottom line of your business as critical to their well being. They wanted to be sure that you earned enough money to operate your business as a manager and marketeer. They also trusted you since every act of billing was completely transparent and they knew that every dollar they spent went directly to the vendor that supplied the part, person or service and that the large fees they paid you (per month) justified the massive savings you brought them by getting them “insider knowledge” with respect to the industry.

It Exists - We Know

The strange thing about the Part 135 industry, is that despite the variety of owners who bring their aircraft onto our certificates, they all end up seeing a lot of similar behavior from operators: Everyone wants their plane.

But when an individual, especially one that is new to the air charter industry sees you as being different, then you have already won the deal. The desperado will only do themselves in or scare the prospect away. And by sticking to your guns, explaining the importance of their role and your role in the relationship, you will mold this owner into a new management owner who will help your business grow in a scalable and intelligent fashion. The one who knows he is your “key guy” will always wonder what more they can get from you.

What Now?

Take the time to evaluate who in your flock is hurting and hindering vs. who is helping and nurturing. Every aspect of your business needs to be positive, or your growth, bottom line and general happiness are at stake:

• ABC: Always Be Closing new deals, be it charter or management. Be sure you spend the money and time to constantly approach new prospects and owners, since diversity is your best insurance policy. One needs to sell the plane, is having financial problems, or simply has a change of heart? No problem, you don’t rely completely on any one particular owner.
• New relationships: Examine the mistakes of the past very carefully and think of the owner that ran you around like a mouse… What characteristics did he (and you) exhibit before the deal was signed? What is different about how you build your company now versus then?
• Attitude: What is your attitude? Are you confident that your appeal, skills, and local knowledge of alternative offerings is adequate that you are the right choice for him? Do you really believe that? If you don’t, think about what you need to do to differentiate yourself.
• Diversity: Is just another word for risk mitigation. If you rely too heavily on one customer (like on client that makes up more than 30% of your sales) then be very careful. They may start acting like a crazy owner, without even owning a plane. (Imagine that - crazy before varsity crazy.) Diversity allows you to lead instead of follow in this sheeplike industry.

Ultimately remember this: If your utilization becomes high enough you don’t need owners. But with new aircraft types, it makes a lot of sense to have risk sharing partners. And to the extent the owner sees you as an entrepreneur who is taking a risk (just like they did) then they will be empathetic and turn into your best resource.

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