DayJet

DayJet was an American commercial aviation company that attempted to build a scheduled-like air taxi network around on-demand, per-seat travel in very light jets. Founded by technology entrepreneur Ed Iacobucci and network architect Nancy Lee Iacobucci, the company was based in Delray Beach, Florida, and positioned itself as an alternative to both conventional airline travel and traditional private-jet charter. Its intended customers were travelers making relatively short, time-sensitive trips who wanted point-to-point service without the fixed schedules, large airports, and long ground transfers associated with major airlines. The company selected the Eclipse 500, a small twin-engine very light jet configured for four or six occupants, as the core of its planned fleet. The aircraft was intended to support a distributed network of smaller airports that DayJet called “DayPorts.” Rather than selling an entire aircraft, DayJet’s operating concept was based on selling individual seats when demand existed, while using technology and flexible routing to match passengers with available aircraft. The model depended on building enough fleet density and passenger volume to achieve efficient utilization and reach profitability. DayJet became one of Eclipse Aviation’s most important customers. It placed substantial orders for Eclipse 500 aircraft and eventually acquired 28 aircraft, with plans for much larger future deliveries. The first three aircraft were delivered on March 31, 2007, and commercial service began in October 2007. The company entered into a five-year agreement with the Federal Aviation Administration and initially developed a Florida-centered network. Jacksonville and Sarasota were added to its DayPort system in May 2008, followed by Saint Petersburg/Clearwater and Orlando in July. The business encountered severe financial pressure as it attempted to scale. In May 2008, DayJet announced that it would reduce operations and eliminate approximately 100 to 160 positions. It also sold or leased 16 of its 28 aircraft. Ed Iacobucci said the company required a further investment of approximately $40 million to reach profitability, but that the deteriorating economic environment made the financing difficult to obtain. He argued that the per-seat, time-sensitive air taxi concept had been validated operationally, but that the company needed a fleet of roughly 50 aircraft to achieve the necessary economics. DayJet suspended all jet services on September 19, 2008, during the global financial crisis. Most employees were dismissed, flights were cancelled, and the company stated that it was unlikely to resume flying under the prevailing economic conditions. Iacobucci stepped down as president and chief executive officer while remaining chairman, and John Staten, previously the company’s chief financial officer and senior vice president of operations, became interim chief executive. Iacobucci later explored the possibility of restarting a smaller operation and identified the financial crisis, together with difficulties involving Eclipse Aviation, as contributors to the shutdown. He maintained that the Eclipse 500 itself had been a reasonable aircraft choice for the original business plan. After the suspension, the 28-aircraft fleet was marketed for sale, with Eclipse Aviation acting as exclusive broker. A proposed purchase by Canadian fractional-aircraft company OurPlane did not close. Following Eclipse Aviation’s 2009 Chapter 7 bankruptcy, the aircraft became associated with Eclipse Aerospace, which planned to upgrade and resell them. DayJet’s technology subsidiary, DayJet Technologies, was taken over by investors who attempted to continue it as a private technology company. The operating airline, however, did not resume service and is regarded as defunct.

DayJet emerged from an effort to apply software-driven coordination and flexible routing to regional passenger aviation. Its founders were Ed Iacobucci, known for technology and enterprise-software leadership, and Nancy Lee Iacobucci, a network architect. The company established its headquarters in Delray Beach, Florida, and developed a business model described as a jet taxi service. The intended difference from conventional charter was that passengers could purchase individual seats rather than hire an entire aircraft. The company selected the Eclipse 500 very light jet as the foundation of its operating plan. The aircraft offered a small cabin, relatively low acquisition cost, and the possibility of using smaller regional airports. DayJet planned to connect these airports through a flexible “per-seat, on-demand” system that would use demand information and operational technology to determine where aircraft should fly. The network’s airports were branded DayPorts. DayJet raised $61 million in venture funding and entered into a five-year agreement with the Federal Aviation Administration. It became Eclipse Aviation’s largest customer, with 239 aircraft orders and expectations of placing additional orders. Its longer-term plan contemplated as many as 1,400 aircraft, a scale that would have represented a large share of the Eclipse 500 production program. The first three aircraft were delivered on March 31, 2007, and the company launched service in October of that year. The initial operation was centered on Florida. DayJet subsequently added Jacksonville and Sarasota to its DayPort network in May 2008, followed by Saint Petersburg/Clearwater and Orlando in July. The expansion occurred while the company was already experiencing difficulty converting its operational concept into a financially sustainable business. In May, DayJet announced that it would reduce activity and cut approximately 100 to 160 jobs. It also sold or leased 16 of the 28 Eclipse 500s it owned. Iacobucci stated that DayJet needed approximately $40 million in additional investment to reach profitability. He argued that the company required a fleet of about 50 aircraft to obtain sufficient network density and utilization. However, the worsening economic climate, culminating in the 2008 financial crisis, made new financing difficult. DayJet suspended all jet services on September 19, 2008. The announcement stated that flights were cancelled, reservations could not be honored, and most employee positions were eliminated. The company also indicated that resuming flying was unlikely under the circumstances. The shutdown brought a leadership change. Iacobucci left the president and CEO role but continued as chairman, while John Staten, who had served as CFO and senior vice president of operations, became interim CEO. In November 2008, Iacobucci said he was still seeking capital for a smaller restart but would not invest more of his own funds. He attributed the collapse primarily to the financial crisis, while also acknowledging problems involving Eclipse Aviation. He continued to defend the Eclipse 500 as an appropriate initial aircraft because of its purchase price, projected maintenance economics, and the simplicity of operating a single aircraft type. The inactive fleet was subsequently offered for sale. Eclipse Aviation served as exclusive broker for the 28 aircraft. OurPlane, a Canadian fractional-aircraft company, proposed acquiring the fleet and selling fractional interests, but the transaction was not completed. After Eclipse Aviation entered Chapter 7 bankruptcy in 2009, its assets were acquired by Eclipse Aerospace, and the DayJet aircraft became associated with the successor company, which planned to upgrade and resell them. DayJet Technologies, the company’s technology subsidiary, was taken over by investors who attempted to operate it separately as a private technology business. The air taxi operation itself did not restart and is considered defunct.

• 2009

  Fleet becomes associated with Eclipse Aerospace

  [1]DayJeten.wikipedia.org

  After Eclipse Aviation’s Chapter 7 bankruptcy, the former DayJet aircraft became associated with Eclipse Aerospace for planned upgrading and resale.

• 2008

  Operational retrenchment

  [1]DayJeten.wikipedia.org

  The company reduced operations, laid off approximately 100 to 160 employees, and sold or leased 16 of its 28 aircraft.

• 2008

  Florida network expansion

  [1]DayJeten.wikipedia.org

  DayJet added Jacksonville and Sarasota in May and Saint Petersburg/Clearwater and Orlando in July as DayPorts.

• 2008

  Suspension of flying operations

  [1]DayJeten.wikipedia.org

  DayJet ceased jet services on September 19, cancelled reservations, and eliminated most employee positions.

• 2007

  First Eclipse 500 deliveries

  [1]DayJeten.wikipedia.org

  DayJet received its first three Eclipse 500 aircraft on March 31, establishing the initial equipment base for its planned air taxi operation.

• 2007

  Commercial launch

  [1]DayJeten.wikipedia.org

  DayJet launched its on-demand jet service in October, offering individual seats on point-to-point flights.

DayJet positioned itself as a technology-enabled alternative to scheduled airlines and whole-aircraft charter, offering flexible point-to-point travel in small jets and selling seats rather than requiring customers to charter an entire aircraft.

• Air taxi service · 2007

  Per-seat, on-demand jet service

  DayJet’s core offering was a flexible regional air service in which customers purchased individual seats instead of chartering an entire aircraft. The model was intended for time-sensitive travelers seeking point-to-point transportation without the fixed schedules and major-airport dependence of conventional airlines. DayJet planned to use operational software and a distributed network of smaller airports to match demand with available aircraft.

• Very light jet fleet · 2007

  Eclipse 500 operations

  The Eclipse 500 was DayJet’s sole intended aircraft type. The four- to six-seat very light jet was chosen for its relatively low purchase price, anticipated maintenance economics, and ability to serve smaller airports. DayJet acquired 28 aircraft and planned a much larger fleet, but financial constraints prevented the company from reaching the scale required by its business plan.

• Regional airport network · 2007

  DayPort network

  DayPorts were airports participating in DayJet’s flexible regional network. The Florida network included locations such as Jacksonville, Sarasota, Saint Petersburg/Clearwater, and Orlando. The concept sought to bring small-jet service closer to passengers while allowing the carrier to organize flights around changing demand rather than a rigid airline timetable.

• 2008

  Scale back operations and reduce the fleetStrategy

  Background

  DayJet faced difficulty raising the additional capital that management believed was necessary to reach profitability. The company’s operating model also required a larger fleet and greater network density.

  Action taken

  In May, DayJet announced layoffs affecting approximately 100 to 160 employees and sold or leased 16 of its 28 owned Eclipse 500 aircraft.

  Aftermath

  The reductions did not stabilize the business. DayJet suspended all flying later in the year.

  Additional capital sought to reach profitability. $40 million sought (May 2008)

  Source

• 2008

  Expand the Florida DayPort network despite retrenchmentStrategy

  Background

  Although DayJet was reducing its overall operation, it continued trying to build demand and network coverage in Florida.

  Action taken

  Jacksonville and Sarasota were added in May, followed by Saint Petersburg/Clearwater and Orlando in July.

  Aftermath

  The network expansion was overtaken by the company’s September suspension of service.

  Source

• 2008

  Suspend all jet servicesOther

  Background

  The company could not secure sufficient financing in the deteriorating economic environment and faced the broader effects of the 2008 financial crisis.

  Action taken

  DayJet cancelled all flights, ceased jet services, and eliminated most employee positions on September 19.

  Aftermath

  Iacobucci stepped down as CEO, John Staten became interim CEO, and the operating business did not resume commercial service.

  Source

• 2008

  Offer the aircraft fleet for saleM&A

  Background

  After the operating shutdown, DayJet no longer needed its Eclipse 500 fleet and sought to convert the aircraft into recoverable value.

  Action taken

  Eclipse Aviation acted as exclusive broker for the sale of the 28 aircraft. OurPlane proposed buying the fleet for fractional ownership use, but the transaction was not completed.

  Aftermath

  The aircraft later became associated with Eclipse Aerospace following the collapse and asset sale of Eclipse Aviation.

  Source

1. 1DayJeten.wikipedia.org