The core of Taosim is about balance. I’m not certain of that, but it certainly sounds important and authoritative.
Richard Aboulafia is also important, and depending on the day of the week, he’s even an authority too. When he sent out his December 08 newsletter he touched on one of the most important Yin and Yang elements of aviation evolution and history.
The ROMANTICS vs. The ANALYSTS
While he castigated Vern for the Eclipse debacle and the herd of drunken followers, he was quick to point out how important this seemingly dysfunctional animal is. Were it not for the string of failures that romantics generate (for the occasional victory, like the Learjet, the 747, etc.) there would be little risk taking and innovation in aviation. In other words, the crushing blow to private aviation, air taxi, micro jets, etc. is all part of the larger evolutionary picture.
The romantics are the dreamers, innovators and risk takers. The analysts try and make such dreams into viable businesses. Were it not for romantics there would be no Lindberghs, first flights, Learjets etc.
In the big boy world of commercial aviation there exists balance. But that is not the subject of this post. Today I will try and bring laser focus to the most important shortcoming of Part 135, fractional ownership and private jet and air charter businesses in general.
IMBALANCE
My smaller world of private aviation there is little balance. IT IS RUN BY ROMANTICS, hence not currently a viable industry or business in most cases. The analysts actually don’t exist, which is why, net of all operations, all time, there has been no money made….and yes, I’m including Netjets at $1BB / yr in annual sales. (If you add up the big failures, bankruptcies, burned money and red ink, we actually fare far worse - per capita - than our beleaguered cousins, the airlines.)
I say that with a heavy heart, since many of our clients are building going concerns…. in private aviation…. doing charter. But the real money is made in maintenance, management and support related endeavors. Making money on charter alone is really really tough. We all know that. The small ones can do it, the really really big ones can do it, but everyone in between gets clobbered, usually because they are buying aircraft (or obtaining managed ones) BEFORE they have any clients, a client acquisition plan or an offering that has anything different other than price or the gleem of the captain’s teeth.
While I consider myself and odd mix of romantic and analyst, my aging years have found me more and more analytical. So in closing, here are a few romantic self help mantras that I learned while attending Romantics Anonymous (also known as RA).
Hope is not a strategy: Remember that when you think about chopping a marketing, sales or business development related expense, effort or endeavor.
Gambling your way to victory assures defeat: Gambling is a close cousin of hope. Develop a buddy system with your spouse, accountant, lawyer, or whoever. Ask them: “Does this sound like gambling? Or does this sound like planning?” (As a romantic, you need to always repeat the word PLANNING to yourself. I speak from experience.)
Airplanes don’t attract customers: Perhaps the most important thing. Charter customers don’t care what it is, if it is new or how global your op specs are. What they want is value and an experience - if you can sell that, you are on the path to recovery and can begin to complete the RA (Romantics Anonymous) 56 step plan.
If you’d like to know more about how I got to step 56 while holding it all together, don’t hesitate to email me so we can cry in our beer a bit together. (Or post a comment here.)
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