When $500,000 Is Cheap

TAG Aviation is best known for handling heavy airplanes. When it branched into Asia, for example, its initial managed fleet consisted of Falcon, Global Express and Challenger aircraft. That's true in the U.S. too. But TAG is also managing a new VLJ Flying Club, the brainstorm of a retired Northern California entrepreneur who has bought 10 Eclipse 500 jets in which he's selling shares. Rolf Illsley's goal is to bring private jet flying not exactly to the masses, but to make it available at a far lower price than fractional ownership, replete with two professional pilots in the cockpit. Pricing is targeted at less than $500,000 for a quarter share, less than $100,000 in annual fees and about $600 per operational hour. TAG is awaiting delivery of the VLJ Flying Club's first Eclipse and is planning a publicity push for Oshkosh this summer. --Rich Piellisch at EBACE 2007, Geneva

Comments

[Jonathan]

The service and price point offered as part of TAG VLJ Flying Club is somewhat based on the idea that up to 3 people can fly for the approximate cost of $200 per person, per hour, not including buy-in and annual fees. One person flying for $600/hr, plus fees, might be the only deal here if ownership and depreciation can be factored in.

This doesnt quite sound like a Fare that is equal to that of Business Class travel on commercial airlines, and begs to be improved on, based on the limited comforts of the Eclipse's small cabin.

For many, a Learjet 31 Charter for under $2000/hr, carrying 3 or more people without ANY upfront purchase or annual fees would be a better cost advantage on trips further than about 300-400 miles.

Considering the speed of the Eclipse 500 compared to the Learjet, and the creature comforts within, a better "bang for the buck" can be found with current travel options, other than the "spectacle" one would enjoy of arriving in a new, rarely seen VLJ like the Eclipse.

Vern Raburn has stated his VLJ has under a $400 per hour operating cost, leaving one to conclude that the VLJ Flying Club is padding the hourly operating costs, with further fees that seriously negate the benefit of "per-seat, on-demand" travel such as the VLJ business plan that Dayjet and Linear Air will emply when selling travel on their Eclipse fleets.

A careful review of the contract and operating limits of the Eclipse VLJ would be wise to those who are pondering the arrival of this new California based travel operation.

The cost of the first hour in the VLJ Club will be nearly $600,600.00, more or less, and this certainly is no deal when compared to current offers you can find at Charterx.com or other jet charter sites.

The TAG VLJ Flying Club sounds nice, but you should do your homework before signing the check.

[Lee]

I worked for Eclipse for 7 months and then went back to Boeing. I am not impressed with their company. They are more like a cult. They put on a good show, but lack true talent, not because they don't have it, but because they don't know how to implement it.