Kenny Dichter, CEO of the private aviation membership company Wheels Up, speaking at a conference in Miami said, “We see an opportunity to bring private flying to millions – and the private flying lifestyle to the world. He added, “In private aviation, we sell the sexiest product…to the sexiest people in the world.”
He explained his vision in terms of the “Total Addressable Market” (TAM). The TAM is the total number of potential customers who have the means to benefit from general aviation services.
Dicther projects the TAM for aviation services is two million (2m) people. “When you look at the numbers, 2m people have private aviation money. Those 2m people would spend $10,000 to $15,000 a year flying in our space if we had rides for them. Even If you serve 100,000 people and they spend $10,000 each, there’s $1bn dollars for you.”
He further suggests that smartphone technology could facilitate expanding into this unserved market segment. Using geolocation technology, like that used by ride-sharing companies such as Uber, could efficiently match travel customers with available on-demand air services.