blink press 20080306 forbes web
TRANSCRIPT
8/9/2019 Blink Press 20080306 Forbes Web
http://slidepdf.com/reader/full/blink-press-20080306-forbes-web 1/3
Peter Leiman andCameron Ogden
Special Report On
Aviation:
The Sky Is Falling
For Aviation, A TurbulentTime
Fuel Expense Isn't TheCrisis
Who Profits While YouWait?
Green Skies Forever
The Little Airlines That Can't
Fighting Over The Nuts AndBolts
FAQ | Terms, Conditions and Notices | Privacy Policy
U.S. EUROPE ASIA HOME PAGE FOR THE WORLD'S BUSINESS LEADERS Free Trial Issue
HOME BUSINESS TECH MARKETS ENTREPRENEURS LEADERSHIP PERSONAL FINANCE FORBESLIFE LISTS OPINIO
E-Mail | Print | Request Reprints | E-Mail Newsletters | RSS
Special Report: Aviation
Blink Wings ItVidya Ram, 06.03.08, 6:00 AM ET
With oil skirting $130 a barrel anddemand for business-class travelslowing, its not the best time to launch anairline. Or is it?
Peter Leiman and Cameron Ogden, twoHarvard Business School graduates,think it could be. They're launching Blink,Europe's first air taxi service, on June 12.
"We are half the price of the private jetmarket and fully competitive withbusiness-class fares on British Airways,"Leiman said.
Blink is marketing itself as a black cab(London taxi) on wings. Well, almost.
Customers won't quite have the flexibilityof private jets, which take customers "toanywhere and from anywhere" at a timeof their choosing. Instead, it will followthe model of airlines such asFlorida-based DayJet, which operateswithin a network of destinations withinthe state, tailored according to the needsof the companies.
Flexibility comes at a price, according toBlink, as private jets pass on the cost ofso-called deadhead airtime (when theaircraft flies between destinations withoutany passengers) on to its customers.Blink is hoping this is a cost thatcash-strapped companies would like toavoid.
At the same time, it's a step up fromregular business-class travel. Blink willdesign its schedule around the needs ofcustomers, meaning that businesses canarrange for regular flights between
destinations at a time of their choosing.Though the tickets are up to 25% moreexpensive than regular business-classtravel, customers can avoid the longcommute to airports such as London'sHeathrow, as well as the work time lost
ADVERTISEMENT
News by E-mail Get stories by E-Mail on this topicFREE
Companies
British Airways Wal-Mart
Topics
Aviation Airlines
Fuel Europe
Become a member FREEAlready a Member? Log
In
Receive Special
Offers?Sign Me Up!
Also available: E-Mail Newsletters
Autos Billionaires Energy Entertainment Logistics Media Pharma & Health Retail SportsMoney Wall Street Washington
Search: Forbes.com Quotes Video Advanced
Go
3
8/9/2019 Blink Press 20080306 Forbes Web
http://slidepdf.com/reader/full/blink-press-20080306-forbes-web 2/3
Distribution Software Shipping Container
Content Management Software
Email Marketing Software
Project Management Software
Accounting Software
eCommerce Software
Help Desk Software
from inefficient scheduling, while the four-seater plane could act as a"boardroom in the sky," according to Blink.
"We had to introduce operational constraints into the model," saidLeiman. "If you have a 'from anywhere to anywhere' approach, costswill spiral, prices will have to be higher, and you lose the opportunity tobring people up from commercial business class to the air taxi."
Leiman and Ogden's idea emerged two years ago, when the first light jets (VLJs), like the Cessna Citation Mustang and the Eclipse 500,
began to appear on the market. Their capital costs were about 15%less than the cheapest jet engines on the market, and operating costswere 30% lower.
"We saw the power of the jets as a disruptive technology. We believe ithad an ability to change the way people travel," said Leiman.
An initial case study with Wal-Mart (nyse: WMT - news - people )
proved fruitful, and the pair found that the retailer, which has the world'slargest fleet of corporate aircrafts, could save around 25% on itsexisting travel budget and make it cost-effective to put employeesearning less than $50,000 a year on the planes.
"If a company such as Wal-Mart, known for its low-cost approach to
business, could use the aircraft to save money and get employees todo more with their time, we knew there had to be opportunities forother companies to extract value," said Leiman.
It's not just wishful thinking. So far Blink has attracted $30 million ininvestment and has ordered 45 of the four-seater Cessna CitationMustangs. It also has three senior captains from British Airways
(other-otc: BAIRY - news - people ) on board.
One lingering concern: the demand for business-class travel is waning.British Airways' latest annual figures showed signs of a decline indemand for short-haul premium travel. Last week, data published bythe International Air Transport Association revealed the sharpestmonthly decline for first- and business-class passengers
As for the impact of prices, Blink has not disclosed its hedging againstfurther rises in the price of fuel, though like other smaller airlines, it'slikely to have minimal cover. Still, Leiman said his planes are light andhighly fuel-efficient, meaning fuel costs are less of a problem than theyare for airlines like British Airways, where fuel accounts for around athird of total costs.
"A 747 at Heathrow Terminal 4 burns more fuel taxiing to the end of therunway than one of our aircrafts do traveling between London andNice," Leiman said.
With oil prices becoming a huge bane for the aviation industry, Blink'sfuel efficiency could be its biggest asset.
Earnings Pain On Euro Gain
Stocks Hold Despite Airline Woes
Your Rating Overall Rating
Reader Comments
Have a question? Ask our community of experts here.
ADVERTISEMENTS
Mom Makes $77/Hr (Online)
Mom makes $8,673+ a month! Read this special report tosee how...www.NewYorkGazetteNews.com/Finance
Solar Stock Pick - EVSO
Emerging Green Energy Co. Growth Stock Investmentwww.EvolutionSolar.com
Worldwide Luxury Travel
Unique Luxury Tours to Egypt, China, Europe, Africa, LatinAmerica!www.AmazingVoyages.com
Buy a link here
ADVERTISEMENT
Related Business Topics
>> Browse All Directories
Trading Center
Brought to you by the sponsors belo
Free Trial IssueNameAddressCityState Zip
GO
3
8/9/2019 Blink Press 20080306 Forbes Web
http://slidepdf.com/reader/full/blink-press-20080306-forbes-web 3/3
Their Own Worst EnemyIre Over InsuranceObama's Eroding Popularity
Companies: WMT
E-Mail Newsletters: Sign Up Now To Stay Informed On A Range Of Topics
Attaché: Customize Forbes.com Now To Track This Author And Industry
Article Controls
E-Mail | Print | Request Reprints | E-Mail Newsletters
del.icio.us | Digg It! | My Yahoo! | Share | RSS
Related SectionsHome > Business > Logistics
Today On Forbes.com
The Party Of Medicare
Bruce BartlettThat's the GOP, in case you hadn't noticed.
Alliance In Peril? India's Idle Tech
Talent
Mutual Funds:
Charitable Families
Obama Faces
Uphill Climate-Change Battle
News Headlines | More From Forbes.com | Special Reports
Advertisement: Related Business Topics >
Medical Records Warehouse Management
Subscriptions >
Subscribe To Newsletters Subscriber Customer Service
CEO Book Club
BOOK REVIEW
George Soros
BOND'S MARKET
Welcome Back, Mr. Bond
Michael MaielloSebastian Faulks' rollicking new Bond storybrings back that old Ian Fleming feeling. It'sa good day to be a Bond fan.
Ad Infor mation Forbes.com Mobile RSS Reprints/Permissions Subscriber Services
Privacy Statement Terms, Conditions and Notices 2009 Forbes. com LLC™ All Rights Reserved
SITEMAP HELP CONTACT US INVESTMENT NEWSLETTERS FORBES CONFERENCES FORBES MAGAZINES
Dow Jones industrial average, Nasdaq composite and S&P 500 indexes are real time and are powered by Xignite.All other indexes and commodities are delayed at least 15 minutes. All pricing is automatically refreshed every five
seconds for the first two minutes the page is open, refreshed every 10 seconds for the third minute the page isopen, and refreshed every 15 seconds thereafter.
3