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Last Update: Thursday July 29, 2021

Key Idea: Turn Time Into An Asset

It's hard to remember life before fast food and now it's hard imagine when people had plenty of time. Any highway in America at any given moment is full of people in a hurry. Watch people standing in line at the grocery store and they are all anxious. We want what we want and we don't want to wait for it. This trend is playing into Reed's hand. His business is increasing as fractional ownership of airplanes increases.

Key Question:

A: 

Help customers save time or reduce hassle.

Q: Why do people own jets or charter jets?

A: To save time not money. Reed says it is very hard to justify ownership of jets unless time is seen by the users as their most precious commodity. Reed understands this so all of his services are designed to save time. Cars pull up to plane side, food is delivered, employees even run to planes if the pilots are just stopping for fuel.

Think about it

Is time important to your customers? What do you do now to save a customer's time? What could you do to save a customer's time or make his or her life easier?
 

Clip from: Texas Jet

Fort Worth, Texas: There are no lines. No crowds. No delays. Just red carpet treatment all the way. And, it is not just for the wealthy anymore. Here at Meacham Field and in 5000 other small airports around the USA, small business owners service, sell, own, and use private jets. This is the other airport in town.

This is the story of Texas Jet which is FBO, Fixed-Base Operation; they provide all the ground-based services required by aircraft owners and operators. The term, FBO, originated back after World War I to describe the first aviation businesses that developed a permanent base of operations to deliver services at airports. That name stuck. Here we open the door of private jets, charters, fractionals, and empty legs. With the help of the Internet bookings, you could easily be taking a little jet rather than drive your car.

Founder Reed Pigman says the pilots are his core customer base;  and, for many years now, these pilots voted Texas Jet to be one of the Top Ten Independent FBO's in the United States. So, out of 5,000 choices, pilots say Reed and his team are among the best. There's more. As a distributor for Phillips 66 Jet Fuel, Reed also takes the lead. Texas Jet has been recognized by Phillips 66 as one of a hand-full of distinguished partners among some 600 distributors. 

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Texas Jet

Reed Pigman, President

200 Texas Way
Fort Worth, TX 76106
8007764547

Visit our web site: http://www.texasjet.com/

Office: 8007764547

Business Classification:
Transportation

Year Founded: 1978

Turn Time Into An Asset

REED: Airplanes always need fuel if they're flying. Pilot training changes from year to year, whether or not the airlines are hiring and what the perception is of what jobs are available. I've also been in the aircraft charter business, and that is very--not seasonal, but it fluctuates from good economies to poor economies. But in the fuel business, even during the rocky years in Texas with the oil bust in the '80s and the banking bust and the real estate bust, we never really had a real bad year.

HATTIE: Give me an idea of what it costs to have a plane if I want to get from point A to point B whenever I want to, instead of going on the commercial airlines.

REED: It depends on how fast you want to get there and in what kind of style you want to go.

HATTIE: OK. Well, give me sort of the spectrum.

REED: You can buy a Cessna 150, probably, for $10,000, $15,000, $20,000. It burns five gallon an hour. Or you can go all the way up to a Gulfstream 5 or a Global Express, which are in the $40 millions.

HATTIE: But cost is not their concern. It's more time, right?

REED: Oh, exactly. It's time. It's difficult to make a corporate airplane justify itself on paper; to say, `Oh, yes, it's saving us money.' It's not going to save you any money. But what it will do is save a lot of time. I've got a company based with me that has a Lear 31, and they fly that almost every Tuesday, Wednesday, Thursday, Friday, Saturday, five days a week out and back the same day. They take a group of people, go to one of their locations, and sometimes they'll cover two locations in the same day, and they're back. There's no way they could do that on the airlines. On the airlines, it would take two days, maybe three days to accomplish what they do in one.

...............
HATTIE: (Voiceover) Not just for the Fortune 500, not just for the rich and famous, small-business owners have an alternative to the crowded, commercial airports.

REED: (Voiceover) We've seen a growth in the fractional aircraft-ownership market, selling a share of an airplane, 1/16th, 1/8th, 1/4.

HATTIE: (Voiceover) Pilots for Flight Options explain.

Unidentified Man #3: What normally we have is so many hours to show up. So if you call up and say, `I want to leave Texas Jet at 3:00 in the afternoon on Saturday,' at 2:00 in the afternoon on Saturday, we'll have an aircraft here ready to take you to the destination of your choice.

Unidentified Man #4: Battery switch.

Unidentified Man #3: Battery switch, yes.

HATTIE: So the way you-all make that work is you own a bunch of planes. And how many does flight options have?

Unidentified Man #3: Well, right now we have over 80 aircraft.

HATTIE: Eighty?

Unidentified Man #3: Yes, ma'am.

HATTIE: So, that way, all your customers, all your owners, can have what they want when they want it.

Unidentified Man #3: Yes, ma'am. And if, for some reason, your particular aircraft that you own isn't available, then we upgrade you up to the next-size aircraft.

HATTIE: Did you put your ideas, back then, in writing, in a business plan format of any sort, so that when you went to the bank, you could tell your story?

REED: Oh, sure. Yeah. And I ran the numbers. I said, `This is how much fuel I think I can sell. These are my costs. This is how much I think my margin's going to be.'

HATTIE: How did you keep your eye on the goal? Did you imagine what you have today 20 years ago? Did you have it in your head--a picture of it in your head?

REED: I did. I remember driving by Meacham Airport and looking at the space, and I said, `This is the place where I want to build some hangars.'
 

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