DayJet Services, which suspended operations in September, is looking for the infusion of some capital to restart operations, but on a much smaller scale. Co-founder and Chairman Ed Iacobucci said Tuesday that the company might restart if it can raise $ 5 million.
Less than a year after beginning operations DayJet ceased operations and laid off most of its workforce after the original goal of 500 aircraft only got to 28 aircraft of which only 12 flew on a regular basis. The challenges to the startup were exacerbated by the credit crunch and the fact that DayJet targeted a large-scale model too quickly.
When asked if Iacobucci will invest any more of his own money he said that he has invested $ 20 million and that he is not prepared to invest any more. "My liquidity is severely taxed," he said.
Yesterday as I drove to Kalamazoo I heard on NPR radio that the credit crunch is even affecting billionairs around the world. The commentator was discussing the sale of expensive paintings and noted that while that market still exists the number of bidders has shrunken considerably. She noted that many of the Russian and Middle Eastern billionairs were no longer interested in collecting expensive art, and that many in the United States were liquidating art pieces to raise capital.
While DayJet was building up clientele that really liked the service, proving that the model could work, the present cash crunch being felt around the world surely inhibits investment in a unique startup business given the current economy.
One thing I learned long ago - if you want to make a small fortune in aviation best to start with a large one!
Until next time keep your wings straight and level Hersch!
"Courage is the price that Life exacts for granting peace,
The soul that knows it not
Knows no release from little things:
Knows not the livid loneliness of fear,
Nor mountain heights where bitter joy can hear
The sound of wings.
How can life grant us boon of living,
compensate for dull gray ugliness and pregnant hage,
Unless we dare the soul's dominion?
Each time we make a choice,
we pay with courage to behold the resistless day,
and count it fair."
COURAGE, a poem by Amelia Earhart