Fly Louie Launches Part 135 Alliance
In what it describes as a heavily fragmented charter industry, Fly Louie has formed an alliance of independent US Part 135 operators that offers cost savings without enrolment fees.
Fly Louie has launched a new venture working to identify and deliver operational efficiencies to the more than 2,000 Part 135 charter operators across the United States. The Fly Louie Allicance seeks to improve the economics of private air travel for passengers and operators.
Following successful launches of private air shuttles in the Northeast, the company recognies several operational challenges facing private charter operators: rapidly rising fuel costs, increasing competition from larger operators, complex human resource issues and growing customer service and marketing infrastructure needs. The alliance aims to solve these challenges at scale for independent private charter operators; its first benefit was member discounts on fuel rates at 30 FBOs nationwide, even compared to contract fuel prices.
CEO Julia Takeda says: “We're thrilled by the response from operators and FBOs alike. Our experience in the charter industry has made it abundantly clear that operators face common challenges, and these can be overcome with scale and leverage. We're proud to help operators overcome those challenges while preserving and encouraging their independence. It's clear from the response that we're on to something.”
In its first six weeks in operation, the Fly Louie Alliance has grown to a network of 30 preferred FBOs, 31 operators and 231 aircraft nationwide. Independent operators are finding the value in it, as Reliant Air flight operations coordinator Michelle Holst explains: “We've worked with the Fly Louie team for the last two and a half years and were excited when they presented us with the opportunity to join the Alliance. We've already taken advantage of the cost savings at some of our key airports. The team is responsive and engages with us on how to expand the Alliance to best meet operators' needs.”
Fly Louie sees the fuel offering as a win-win for FBOs and Part 135 operators. FBOs are happy to become a preferred stop for alliance aircraft, knowing they will see higher volumes and therefore profit accretion. Operators are thankful that there is finally a CAA-like option for Part 135 charter operators.
The team has ambitious plans for further expansion of the programme, which currently requires no enrolment fees or fuel purchase minimums. The community of Part 135 independent operators and FBOs is already discussing what offerings should come next after the fuel savings programme; tackling employee travel costs, streamlining pilot recruitment and retention, or improving the cooperation across charter operators to help them better match supply with demand for charters.
“We are open to several possibilities for our future growth, and input from our members will help us finalise those plans. At the moment, we're excited about the high demand for the fuel savings programme,” adds COO Eytan Kurshan. “We want to develop the best execution of that benefit before we decide which membership benefit to launch next.”