DayJet discontinues passenger operations -parks VLJ fleet
20 Sep 2008
DayJet, an American commercial aviation company providing on-demand jet travel using Eclipse 500 Very Light Jets, has decided to mothball its fleet and cease operations, citing 'economic reasons'.
DayJet was founded in 2002 to provide direct, on-demand air transportation between secondary regional markets using a new generation of very light jet (VLJ) aircraft and its own real-time operations system.
Plagued by three years of delayed aircraft deliveries, DayJet finally launched the world's first ''Per-Seat, On-Demand'' jet service in October 2007 amidst much anticipation. The company, which commenced operations out of Florida in October 2007, suspended operations on 19 September, 2008.
A note on the company's website reads, ''As of September 19, 2008, DayJet Services, LLC, has discontinued its jet services and cancelled all future flights as a result of the company's inability to arrange critical financing in the midst of the current global financial crisis. We regret the disruption and hardship caused by the sudden shutdown of DayJet services to our customers, employees, DayPort communities, suppliers and stockholders. Unfortunately, DayJet is unable to honor customer reservations or issue refunds.''
In a statement, the Boca Raton, Florida based operator said that the it has ceased jet services, pending further notice, and had eliminated most employee positions. ''With the discontinuation of jet services and cancellation of all flights, DayJet is unable to honor any customer reservations'', the statement said.
The company said its shutdown is a direct consequence of the its inability to arrange critical financing in the midst of the current global financial crisis. Additionally, the airline said that its operations have also suffered as a result of Eclipse Aviation's failure to install missing equipment or functionality or repair agreed technical discrepancies in accordance with the terms of DayJet's aircraft purchase contract.
''We deeply regret the disruption and hardship to customers, suppliers and employees caused by this unexpected shutdown of commercial operations,'' said DayJet founder Ed Iacobucci. ''Twelve months ago our team launched a new regional transportation model. During the past year, we have demonstrated, beyond a reasonable doubt, that customers will sign-up, purchase, and become frequent users of this new service – the DayJet 'Per-Seat, On-Demand' model works. It is unfortunate that these developments have come at the same time our nation has fallen into the most serious capital crisis of our lifetime. Regrettably, without access to growth capital, we have no choice but to discontinue operations.''
In a statement to the press, the company said that Iacobucci has stepped down as DayJet President and CEO, but continues to serve as chairman of the board of directors.
John Staten has been named interim CEO with responsibility for managing the affairs of the company during the next phase of operations. Staten has served as DayJet CFO and senior vice president of operations for the past six years
When it started operations in October 2007, DayJet said that it was among the best capitalised pre-operational air carriers in US history, and the first 100 per cent all-digital operator.
Since the launch of its service, DayJet built a growing membership base of more than 2,400 regional travellers. The company flew over 9,000 segments totalling over one million miles, with an industry-leading 95 per cent on-time performance record and a 93 per cent customer satisfaction rating.
DayJet also grew its ''Per-Seat, On-Demand'' service network from five initial destinations to more than 60 communities across the Southeast – filling in the regional transportation gaps left from the airline's drastic service reductions (especially to small and medium-sized communities).
DayJet had signed a five-year agreement with the FAA in June to accelerate deployment of NextGen technologies to transform the National Airspace System (NAS).
Reports in the media cited an FAA spokesman as saying that the company had ''parked'' its entire Eclipse 500 fleet at noon today for ''economic reasons.''
