November 09, 2008

Linear Press Release

www.linearair.com - Linear Air Emily Sanchez, 978-451-0589 esanchez@linearair.com Linear Air, the leading personal jet air taxi service provider in the Northeast, announced the close of $1.3 million in financing which includes new capital and debt. "This new financing was pivotal for us to maintain market leadership during the current economic environment," says President and
CEO, William Herp. "While conditions for fundraising at this time are not ideal, we have a group of investors whose commitment to our success hasn't waivered and remains strong." With the new financing, Linear Air is poised perfectly to launch its aircraft management program designed to assist those who have very light jet aircraft in the Northeast and Mid-Atlantic regions, with future potential for national service.

The company's new VLJ Aircraft Management Program will assist those with VLJ aircraft who desire access to aircraft maintenance, pilot training and the potential for higher charter revenues. While the program is most beneficial for Eclipse 500 VLJ aircraft owners, the program applies to a broad base of VLJ owners and aircraft types. "Linear Air is ideally positioned for an Aircraft Management Program within the VLJ space due to our relationships with aircraft manufacturers and our in-house training program," says Herp. "Our ability to ease the pain for others who operate similar aircraft is increasing, especially as uncertainty continues to surround the Eclipse 500 manufacturer, Eclipse Aviation Corporation."

The VLJ Aircraft Management Program is classic in structure. Owners receive 85% of charter revenue, cover all related costs and pay a $2,500 monthly management fee to cover overhead. Linear Air offers owners higher aircraft utilization and higher cost offset through the company's large database of customers without the hassle of handling the transactions.

About Linear Air Linear Air provides point-to-point air taxi service with unprecedented access and affordability. Based in Concord, Mass., the Linear Air fleet includes Eclipse E500 business jets and Cessna Grand Caravan turboprops. Linear Air offers business and leisure travelers access to more than 500 cities in the Northeast and eastern Canada. Linear Air is a FAA-certified part 135 charter operator that maintains a Gold safety rating from ARG/US, the leading independent safety auditor in the aviation industry. For more information, please visit www.linearair.com or call 1-877-2-LINEAR. Despite current economy, Linear Air secures $1.3 million infinancing and gains momentum for a Very Light Jet (VLJ) AircraftManagement Program.

5 comments:

Jahn said...

This story leaves me with tooo many unanswerd questions

a. "financing privotal for us to maintain market leadsership"......leadership in what niche...charter flights to resort destinations or "Aircraft Mng't Programs"?

b. $1.3M in newly obtained financing really isnt anything that I would tend to brag about....$1.3M is chump change in thsi business and begs teh questions ...I wonder how much they tried raise w/o success and had to settel for $13M...&...why not raise $1.3M to make a small downpayment on a used jet rather than leasing them from other airlines?

c. "The new VLJ Aircraft M'gt Programs ...(of) aircraft maintenance, pilot training, & potentiial higher charter revenues" ....this is an entirely diff line of business and IMO if they want to be in this business it s/b done under the umbrella of an entirely diff entity.

d. "uncertainty surrounds the Eclipse 500 (VLJ) manufacturer , Eclipse Aviation"....i am not sure why I'd want to go into the business of maintaining an aircraft whose manufacturer may soon not be with us...unless maintenace of a VLJ is a highly specilaized task.....not unlike teh WPD highly specialzed, time consuming task of gathering documents, redacting line items, collating, photocopying, and mailing them.

Exactly what business is Direct Air in? Personal property management & maintenace...and brokering passengers to to leased and unowned & "managed" aircraft?

As business stategists would say ...what does (or can) Direct Air bring to the party (that others cant). I'll tell you what they cannot bring to the party & that is assets

Bill Randell said...

Jahn:


This press release was about Linear Air not Direct Air.

Bill

Jahn said...

..............whoooooops...........i got my carriers crossed up mea culpa

So you thinkl Linear might be intertested in the 4 acre RFP for a hangar or what ever it was supposed to be for??

Bill Randell said...

Linear Air, based at Hanscom, has been one of the survivors. We should keep an eye on them and if their mgmt plan for the Eclipse succeeds then land at ORH may interest them.

Steve said...

Eclipse reportedly fails to meet payroll

By Dave Hirschman

Eclipse AviationEclipse Aviation failed to meet its payroll during the last two weeks, and some angry employees have emptied their desks and left the very light jet pioneer, a local TV station reported Nov. 13. Eclipse spokeswoman Alana McCarraher didn’t immediately return inquiries.

Eclipse has publicly stated that it needs up to $300 million in new capital to continue production, and company officials said they hoped to have the cash infusion before the end of the year. Other widely published forecasts predicted Eclipse would be forced to seek bankruptcy court protection in next year’s first quarter.

Albuquerque TV station KOB is reporting that Eclipse employees were called to a meeting today in which managers told them they would not be paid for the last two weeks, and workers “expressed anger, frustration and uncertainty before speeding out of the facility’s parking lot.”

Eclipse has produced more than 200 twin-engine Eclipse 500 jets and had announced plans to certify and deliver V-tailed, single-engine Eclipse 400s. But the company’s original business plan depended on being able to produce large numbers of aircraft at drastically lower unit costs. Eclipse never came close to meeting its ambitious production goals, however, and the air taxi firms that were expected to become Eclipse’s main customers never fully materialized.

Eclipse ousted founder and CEO Vern Raburn in August.

November 13, 2008