© Air Taxi Association, 2008, CONFIDENTIAL Air Taxi Association (ATXA) Image Source: © Respective Companies. As example only. Not for reproduction. Very

© Air Taxi Association, 2008, CONFIDENTIAL

Air Taxi Association (ATXA)

Image Source: © Respective Companies. As example only. Not for reproduction.

Very Light Jets (VLJ)The Next Generation Aircraft That Are Changing Aviation and Flying out of Your Airports

by Joe Leader, President

2008 Eastern Region Airport ConferenceHershey, Pennsylvania

© Air Taxi Association, 2008 www.atxa.com

Next Generation Air Taxis

Not just about the arrival of very light jets

Technology advanced, highly efficient aircraft

Major advances in business models

Highly efficient operations



Today’s Presentation

Quick introduction Key Definitions Forecasts and Growth Environmental Issues Utilization Rates Next Generation Air Taxi Market Drivers Next Generation Companies Overview Q & A


Key DefinitionNext Generation Air Taxi

Direct, on-demand air travel at competitively priced levels using technologically advanced aircraft and/or advanced business models to maximize efficiency.

Filling the gap between traditional charter, commercial carriers, and driving with a return on time investment.

Majority of next generation air taxi passengers today come from the roads and aircraft primarily utilize secondary airports.

Image Source: © Popular Science, 2005. As example only. Not for reproduction.

Joe Leader

Could I get a different, good graphic here please?


Key DefinitionsVery Light Jet

Very lights jets are defined as jet aircraft weighing 10,000 pounds of less, certified for single pilot operation, and possessing advanced avionics.

VLJs utilize advanced avionics from leading manufacturers allowing aircraft to fly RNP and to be

ADS-B ready for more efficient aircraft utilization.

Joe Leader

avionics system used in the aircraft. talk about the aviations system garmin, avio, fly RNP and ADS-B ready. Equpip


Very Light JetsAircraft Manufacturer Seats Engines Max. Cruise Max. Range Cost Orders Certification

Citation Mustang

Cessna 6 2× PW615F340 knots (630 km/h)

1,300 NM $3.295m 250 November 23, 2006

Eclipse 500 Eclipse Aviation 6 2× PW610F370 knots (695 km/h)

1,125 NM $1.52m 2,500 December 31, 2006

Diamond D-JetDiamond Aircraft

51× Williams

FJ33-4315 knots (583 km/h)

1,350 NM $1.38m ~300 2008

Eclipse ECJ Eclipse Aviation 4 1x PW615F345 knots (639 km/h)

1,250 NM NA NA 2009

Embraer Phenom 100

Embraer 6-8 2× PW617F380 knots (704 km/h)

1,320 NM $2.85m 50+ 2008

Epic Victory Epic Aircraft 4-61× Williams

FJ33-4320 knots 1,200 NM $1.20m 2009

Honda HA-420 HondaJet

Honda Aircraft Company

6-82× GE Honda

HF120420 knots (778 km/h)

1,100 NM $3.65m 130+ 2009

Spectrum S-33 Independence

Spectrum Aeronautical

92× Williams

FJ33-4415 knots (770 km/h)

2,000 NM $3.65m 2009

Cirrus Jet Cirrus Design 71× Williams

FJ33-4~300 knots ~1000 NM $1.3m 327 2010

Epic Elite Epic Aircraft 72× Williams

FJ33-4390 knots (722 km/h)

1,600 NM $2.10m early 2008

Excel-Jet: Sport-Jet

Excel-Jet 51× Williams

FJ33-4375 knots (695 km/h)

1,000 NM $1.00m late 2009

PiperJet Piper Aircraft 7 1× FJ44-3AP360 knots (667 km/h)

1,300 NM $2.20m ~180 early 2010

Spectrum S-40 Freedom

Spectrum Aeronautical

7-92× GE Honda

HF120435 knots (805 km/h)

2,200 NM $6.2m 2010

Shortest Takeoff / Landing: 3100 ft / 2380 ftFlight Level Max: 25,000 ft – 45,000 ft


FAA Update for 2008-2025Updated Estimate on VLJ Fleet Entry

The actual number of VLJ deliveries in 2007 fell short of our assumption in last years forecast (143 vs 350).

The current forecast assumes that VLJs will continue to enter the active fleet at a rate of 400-500 aircraft a year, reaching 8,124 aircraft by 2025.


FAA Update for 2008-2025Selected Quotes on VLJ Growth

The relatively inexpensive twin-engine VLJs (priced between $1 and $2 million) are believed by many to have the potential to redefine the business jet segment by expanding business jet flying and offering performance that could support a true on-demand air-taxi business service.


PMI Media ForecastVery Light Jet Estimates

PMI Media For 2007, publisher achieved

most accurate forecast for production 18 months in advance

2007-2016 7,659 VLJs Added Worldwide;

5744 U.S. 4,595 Units or 60% Deployed

to Existing Air Taxi / Charter Marketplace; 3346 in U.S.

U.S. 75% of market, Standing at

75% of current backlog

2008-2016 Source: PMI Media. Please note newest VLJs / PLJs not forecasted.

Joe Leader

FAA will have some of the specifics from the FAA forecast. Why there is a difference. Received next week at the forecasting conference.


United States VLJs Deployed as Air Taxis

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

HondaJ et

Mustang

Phenom 100

D-J ET

Eclipse 500



VLJs Deployed as Air TaxisTotal Aircraft Growth in U.S.

0

500

1000

1500

2000

2500

3000

3500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

HondaJet

Mustang

Phenom 100

D-JET

Eclipse 500



FAA Update for 2008-2025GA Growth with VLJ Introduction

“GA instrument operations are projected to grow 2.1% a year . . .”

“GA activity is projected to grow 2.9% a year (almost as much as commercial activity), reflecting the expected impact of VLJs and additional business aviation activity.”


VLJ Runway Length & Weight

Initial aircraft illustrating incredible efficiencies Remarkably short jet takeoff / landing capabilities Opens highly efficient, Stage IV jet aircraft to

wider range of secondary airports across America

Takeoff Weight LandingCessna Citation Mustang 3,110 ft 8,645 lb 2,380 ftEclipse 500 2,342 ft 5,995 lb 2,250 ftEmbraer Phenom 100 3,400 ft 9,700 lb 3,000 ft


VLJs: Greener Aircraft

VLJs are built to be GREENER AIRCRAFT with leading fuel efficiency, record low emissions, lowest noise jets, dramatically reduced use of hazardous materials, use of recycled materials, and design for future recyclability.

Image & Source: Eclipse Aviation


VLJ Emissions

Number one selling VLJ has the lowest emissions while other VLJs follow the pattern

Lowest carbon dioxide (CO2) emission of any jet aircraft, and most prop-driven aircraft

Registered smoke number of less than 1ppm by EPA – lowest smoke emitting jet engine operational today

Extremely low mono-nitrogen oxide (NOx) and carbon monoxide (CO) emissions

Source: Eclipse Aviation


VLJ Noise

Number one selling VLJ is 30% quieter than Stage IV

Two engine jet quieter than: All jets All turbo props Nearly all single engine

props

Source: Eclipse Aviation


FAA Update for 2008-2025VLJ Air Taxi Utilization Rate

“VLJ air taxis are expected to average approximately 1,500 hours per year, shared ownership users about 525 and private use 375.”


Two Factors Driving Air Taxis: 1. The Interstate Highway Challenge

For 30 states, road congestion is a serious issue for more than 1/3 of the population.

For three states, road congestion is a serious issue for 1/2 of the population.

Only seven states arecongestion-“free”

Imagine & Source: DayJet


Two Factors Driving Air Taxis: 2. The Hub-and-Spoke Challenge

2015: Planned additional capacity leaves six airports and four metropolitan areas that need additional capacity.

2025: With assumed NextGen concepts, 14 airports and eight metropolitan areas will need additional capacity. This analysis shows why additional solutions including NextGen are so important.

Source: FAA: Capacity Needs in the National Airspace System, 2007 and DayJet.


A Wide Variety of Business Models: Next Generation Air Taxi Operators

Air Taxi Operators

Air Taxi Marketplaces

Future Operators


Q & A

© Air Taxi Association, 2008, CONFIDENTIAL

Air Taxi Association


Very Light Jets (VLJ)The Next Generation Aircraft That Are Changing Aviation and Flying out of Your Airports


Contact Information

Joe Leader, President

[email protected]

Air Taxi Association (ATXA)

Two Ravinia, Suite 500

Atlanta, GA 30346

678.855.7177

Documents

© Air Taxi Association, 2008, CONFIDENTIAL Air Taxi Association (ATXA) Image Source: © Respective Companies. As example only. Not for reproduction. Very