Sunday, November 11, 2007

Assessing the DayJet monthly burn rate

Borrowed from the Eclipse Critic comments..........

If you assume that each flight was a revenue flight (no positioning or dead head flights and no diverted flights) and each flight had 3 passengers and each passenger paid $4 per mile, you would get the absolute maximum revenue for the month.

If you assume a reasonable percentage of the flights were positioning, training, or dead head flights and each rev flight had one passenger and each passenger paid $2 per mile, then you get the lower bound on revenue for the month.

Then best case would be 3 passengers per flight x $4 per mile x 314 flight hours x 220 miles per flight hour x 100% revenue flights =$830K for the month.

The worst case would be 1 passenger per flight x $2 per mile x 314 flight hours x 220 miles per flight hour x 66% revenue flights = $92K for the month.

As with anything, the truth lies somewhere in the middle. Let's split the difference and say DayJet had $460K in revenue for the month.

According to Eclipse it costs $424.75 per hour in operating costs. That would be 314 flight hours x 424.75 = $133K in direct cost per month.

Interest expense of financing 15 aircraft would add let's say roughly another $100K per month.

If you had one and a half crews for each aircraft, that would be 45 pilots at $60K per year - works out to another $225K a month. (Likely more than 3 pilots per airframe - Ed.)

That's $458K in expenses per month vs. $460K of revenue.


Anonymous said...

The only reason eclipse is still operating is because of Bill Gates money......eclipse is in trouble...we own one...we wish somebody else owned it instead....the eclipse jet is the tinker toy version of the vlj's.....lots of luck getting any after sale service.........
any takers?????

Anonymous said...

dayjet will soon fire bill brown,vigina kelly all the iiiiincompz that cant manage a hotdog

Anonymous said...

Ignorant? The ignorance only come from fooled people. The many that don't stop to think where
the Spin doctor's of The so called "Corporate inventions get the NEXT best craz". The whole idea behind the so called VLJ is Eclipse and Dayjet to get public support. Build up enough investors on future projections of PROFITS (no one knows when) The Ceo's get rich and the small investors and public lose in the end. THE TRUTH is these people have done it before with Computer tec and are now doing it in a aviation industry. The computer and internet bubble have made these people rich and created the 90's bubble to bankrupt millions in debt and close the small business by 2001.
The goodfellas are back trying to fool you idiot!
Eclipse is a sweat factory for the little jet that sucks. The production is slow because it's the frankinstien of parts coming from all over.
Dayjet's another full of it secret sauce of
spin news... Look at the model real closely and
you see it too...

Anonymous said...

Eclipse is a sweat factory of parts.
True the design is not new in building plans from all over the place. The problems are extensive,i use to work for dayjet for 6 months and had to leave because of the stupid director incompetant Billy the kid as he wanted to be looked at.
Billy is fired hahahahahh have fried with that sir.
I only tried to warn of the problems but was shoved aside.
I told you sooooo idiot bluke
walmart hiring..

Anonymous said...

I said this before and all that I said came true. Dayjet is gone. The company crapped out. The director of customer service was let go in may(smile welcome to the party) The rest is now out. I never met a bunch of back stabbing idiots that dont know how to manage.

Anonymous said...

Dayjet is gone due to delays from Eclipse and lack of flight simulators that are required to train pilots - essentially they had a start date that was pushed back 1.5yrs, which creates a huge burden on your balance sheet by having no revenue and a full staff. Couple this with the recent lack of credit available and it was doomed to fail. Blaming it on mgmt. can only partly be true in the sense that they should have "forseen" such a large delay from Eclipse and from the flight simulators (however unrealistic that may be). In reality the downfall was over a year of cash burn due to inabilty to generate revenue.

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