A lengthy and fascinating article by Aviation Week’s George Larson reflecting on the legacy of PSOD (Per Seat On-demand) air travel as popularized by the now-defunct DayJet. There’s lots to think about; Larson does a great job comparing and contrasting the various models of air charter and air taxi services. Here one small excerpt:
PSOD has little appeal for charter operators who want to serve traditional markets. Magellan Jets is a newly formed company that has a unique business proposition: “Simplicity,” says president and co-owner Anthony P. Tivnan. Aimed at the higher end clientele, the service provides aircraft seven years old or newer in a range of sizes to fit the trip, which includes everything and has no addition fees or invoices. All costs are deducted from an account with $250,000 on deposit.
“The per-seat model is the wrong place, wrong time,” he says. “We’re not positioning ourselves to target fliers who travel one to three times a year. The 30-percent decline in charter has been mostly those people.” He’s also not drawn to passenger aggregation schemes. “Our customer wants the airplane,” he says. Magellan customers are primarily looking for privacy.
