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Very Light Jets/VLJs

Very Light Jets/VLJs. Association of California Airports September 19, 2007 South Lake Tahoe Robert P. Olislagers Centennial Airport. VLJs. So many jets…so little time. VLJs. What is the essence of VLJs? Price Point Yes…new market share Construction Yes…Key to price point Size

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Very Light Jets/VLJs

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  1. Very Light Jets/VLJs Association of California Airports September 19, 2007 South Lake Tahoe Robert P. Olislagers Centennial Airport

  2. VLJs So many jets…so little time

  3. VLJs What is the essence of VLJs? Price Point Yes…new market share Construction Yes…Key to price point Size No…Detriment to comfort Ability to land on shorter runways Yes…but Jet activity remains confined to demographics and…will small airports carry jet fuel? Range Maybe…Load factors and size of the smallest bladder will dictate range

  4. VLJs Who all is in the Game… Cessna Honda Embraer Eclipse Adam Diamond Cirrus …and countless under-funded efforts

  5. VLJs What is Wall Street’s effect? No Bucks, no Buck Rogers, a.k.a. No Money, no fly… Drove up FBO Market Cap in anticipation Will dictate bottom line to the highly leveraged Will demand ROE during maturation shake-out

  6. VLJs Are all those forecasts right? FAA, Honeywell, GAMA, etc…Agenda anyone? 2006 GA Deliveries, VLJs would have been 25% with even the most optimistic forecast There will be a market maturation shake-out Most forecasts (in my view) are overly optimistic…

  7. VLJs So, who will survive?

  8. VLJs So, who will survive? Only the strong…duh, but seriously The well-capitalized Those at the front of the certification race Those with the track record Those that do not trip up Those that merge innovation with business acumen

  9. VLJs What is the impact on FBOs? Economies of scale… It is like having a few more King Airs on the ramp Will demand services, but only buy 200 gallons Some will embrace VLJs… Others will “cherry-pick”

  10. VLJs What about GA airports? Where’s the business at? Demographics will continue to dominate distribution Jet fuel & service availability will be key Meeting hangar demand Community/Public relations… a polite word of caution!

  11. VLJs In conclusion… Maturation shake-out will dampen forecasts a bit Overall VLJ impact is sizeable but not dominant Investment/Venture capital will influence biz models @ … Airports, FBOs & VLJ manufacturers Life is good… Because we are going to have something new… New market share New business opportunities

  12. Thank you! rolislagers@centennialairport.com

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