| The term "air taxi" refers to an aircraft service that | | | | would employ, Entire Aircraft or Per Seat: |
| provides transport to people in an on demand basis. | | | | Entire Aircraft - Again we'll use the Cessna Citation S/II |
| That is you can take a flight in a private jet when you | | | | for this example but the hourly rate will be higher than |
| want to go rather than booking a trip that was | | | | the air charter rate; let's say about $2,500 per hour for |
| previously scheduled. Air charter is a form of air taxi | | | | this example but you won't be charged for |
| but a new class of aircraft and new business models | | | | repositioning, overnight, waiting landing or other charges. |
| are re-defining "air taxi" to mean something less | | | | It will be a simple per hour price for a pickup and |
| expensive than traditional charter. The idea behind an | | | | drop-off. After you are dropped off the aircraft may |
| air taxi system is that the aircraft operator will be able | | | | take another client on a trip. Your return trip may be in |
| to reduce the number of empty flights that the airplane | | | | the same aircraft or it may be in a different aircraft or |
| has to make. | | | | even a different company. This sort of air taxi service |
| Air Charter: | | | | may only be available between certain airports that |
| Let's say you book a flight on a Cessna Citation S/II | | | | have enough traffic to keep the aircraft gainfully |
| (CE-S550). This light jet might rent for an hourly rate | | | | employed. |
| anywhere from $1,500 to $3,100 depending on the age | | | | Per Seat - The Citation S/II has 7 passenger seats |
| of the aircraft, amenities and operator qualifications. For | | | | available. If they make a flight with fewer than 7 |
| our purposes we'll assume a typical rate of $2,000 per | | | | passengers onboard the operator would lose money if |
| hour. This price includes the costs associated with | | | | they divide the fare by the number of seats. So they |
| operating the aircraft such as pilot salary and fuel | | | | will fix their pricing in one of two ways: |
| costs but does not include some extra charges that | | | | 1) Divide the entire price by the number of passengers |
| may add considerably to your expenses such as: | | | | actually onboard the aircraft for each flight. Let's say |
| Taxes - generally 7.5% of the total price. | | | | you are traveling with two colleagues and there is |
| Repositioning fees - Let's say you want to fly out of | | | | another group of two that will travel on this flight with |
| Santa Monica, California but the aircraft is located in | | | | you for a total of five passengers. The price for a |
| San Diego. The aircraft operator would need to send | | | | seat would be $2,500 / 5 = $500 per seat. If your |
| the airplane empty to pick you up and then return it | | | | group were the only ones on the airplane then the |
| empty to San Diego after dropping you off in Santa | | | | per-seat hourly rate would be: $2,500 / 3 = $833 per |
| Monica at the end of the trip. This repositioning adds | | | | seat. |
| expense to the operator's bottom line and is generally | | | | 2) Divide the entire price by the average number of |
| added to your cost at a reduced hourly rate. | | | | passengers the operator carries on each trip. Let's say |
| Overnight and waiting fees - Let's say your trip is to fly | | | | the operator has been flying the SMO to LAS route |
| from Santa Monica to Las Vegas returning on the | | | | for some time and they have determined that they |
| same day. Your pilots would wait for you for several | | | | can routinely get an average of 2.9 passengers for |
| hours and you'd be charged an hourly rate for the | | | | each flight they make. If the operator uses this pricing |
| pilots' time. If your trip calls for an overnight stay you | | | | strategy they would charge you $2,500 / 2.9 = $862 |
| may be charged for the pilots' hotel rooms and | | | | per seat per hour. This would be the same price |
| overnight parking fees for the aircraft. These charges | | | | regardless of the number in your party. |
| will vary depending on local rates. | | | | Per seat pricing would only be available between |
| Daily minimum charge - Most aircraft operators have a | | | | limited city pairs that have the volume of traffic to |
| two-hour minimum operation charge for charter | | | | keep the aircraft filled with paying passengers. If you |
| aircraft. If you need to go on a flight that takes one | | | | want to fly to an airport outside the per seat network |
| hour each direction and you complete both legs of the | | | | of cities you would probably need to charter the entire |
| trip in one day then you meet the minimum use | | | | aircraft as per seat pricing would not likely be available. |
| requirement and you would only need to pay for the | | | | It's all about efficiency: |
| two hours you use the aircraft that day. If, on the other | | | | The emerging air taxi business model brings more |
| hand, your trip is scheduled to fly one hour on Friday | | | | efficiency to the air charter model. Less waste will |
| and then return for the one hour trip on Saturday then | | | | equate to reduced greenhouse gas emissions, more |
| you would likely be charged for two hours on Friday | | | | productivity and lower end costs. Air taxi is expected |
| and two hours on Saturday for a total of four hours, | | | | to become more available and less expensive as |
| even though the aircraft only flew for two hours total. | | | | Very Light Jets (VLJs) are produced and made |
| This industry standard practice is in place for the "time | | | | available for air charter and air taxi flights. These |
| is money" principle. Aircraft incur expense even when | | | | aircraft promise to provide services at 20% to 40% |
| they are just sitting idle. | | | | discounts from existing light jet aircraft such as the |
| Air Taxi: | | | | one in the example. As of this writing there have been |
| There are two distinct pricing structures in the air taxi | | | | about 100 VLJs produced and a handful of them have |
| model that might be used and each aircraft operator | | | | found their way into air taxi businesses along the east |
| would make their own determination as to which they | | | | coast and Chicago area. But that's another story. |