Who was saying DayJet was doing well? Not so much.

Larry Dighera wrote:
On Wed, 07 May 2008 16:35:18 -0500, Gig 601Xl Builder
wrote in
:

Well, this was mainly posted the way it was because the other day Larry
said DayJet was making a profit. It was a silly statement at the time
and I called him on it but he never replied.

Bob Fry was good enough to post an Atlantic
Monthly article that appeared in the May 2008 issue titled Taxis in
the Sky by James Fallows in Message-ID:
on Sat, 03 May 2008 20:23:48 -0700 under the subject of SATS Success!
(very long).

It was this statement in that article that lead me to believe that
profit was being made:

In the few seconds it takes DayJet to price your trip, a system
called RTR (for "real-time routing") is figuring out how your
request will affect the placement of planes, pilots, and
passengers for all other flights that day, and exactly how much
the company must charge to make a profit on your flight.



I can understand why that might lead you to thing that the company was
in the black. But you should think about this. If their booking computer
was designed to put them into the black on each flight. The first
booking would have charged the first customer for all start-up costs of
the company. The difference here is gross profit vs. net profit.

And just because they aren't in the black yet doesn't even mean that the
company has a problem. Very few new companies, especially those with
high start up costs make a net profit in even the first several years.
Amazon.com went along time with their stock continuing to climb with out
ever making any money. Hell, I'm not 100% sure they are really in the
black yet.

Gig 601Xl Builder presented the following explanation :
I can understand why that might lead you to thing that the company was in the
black. But you should think about this. If their booking computer was
designed to put them into the black on each flight. The first booking would
have charged the first customer for all start-up costs of the company.

IDIOT ALERT !! IDIOT ALERT !!

On Thu, 08 May 2008 08:32:38 -0500, Gig 601Xl Builder
wrote in
:

And just because they aren't in the black yet doesn't even mean that the
company has a problem. Very few new companies, especially those with
high start up costs make a net profit in even the first several years.

It looks like DayJet is still making an effort:

DAYJET EXPANDS OPERATIONS IN FLORIDA
(http://www.avweb.com/eletter/archive...ll.html#197926)
Less than two weeks after announcing cutbacks in staff

(http://www.avweb.com/avwebbiz/news/B...197799-1.html),
DayJet on Tuesday said it will expand its network

(http://www.dayjet.com/News/PressRele...a_05202008.pdf)
of DayPorts, adding two more Florida cities, for a total of nine
sites. With the addition of Jacksonville and Sarasota, 62 percent
of Florida's population now lives within 35 miles of a DayPort
airport, the company said in a statement on Tuesday.


What is ironic, is that both DayJet and Cirrus' SATSair are competing
in the same SE regional market. Imagine how well one of these
start-ups might do if they could command 100% of the market instead of
50%. And the west coast is open, but neglected.