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17 Replies Last post: Jan 3, 2009 8:00 PM by RRairceo1

Secured Loan request/Private Equity offer for Eclipse 500 jet charter company Roadrunner Air

Dec 18, 2007 6:38 PM

Click to view RRairceo1's profile Professional RRairceo1 8 posts since
Dec 18, 2007
Secured Loan request /Private Equity offer for Eclipse 500 jet charter company Roadrunner Air

Los Angeles CA metro area based serving Southwest US.

$2 million.

Most of the angel investors and venture capitalists I've talked with can't handle the risk, or they are not receptive to this new jet which is actually new technology, but they consider it to be a leisure activity rather than a technology investment, with dificulty measuring the demand.

www.roadrunnerair.com

Tony Mercadante
President
mailto:info@roadrunnerair.com
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Click to view LUCKIEST's profile SCORE LUCKIEST 7,942 posts since
Aug 6, 2007
1. Re: Secured Loan request/Private Equity offer for Eclipse 500 jet charter company Roadrunner Air Dec 18, 2007 6:46 PM
RR, Tell us more. Where is this Eclipse 500 jet now??
Who owns it now?? When will the Roadrunner Air acquire the jet??
Do you have a Business and Marketing Plan showing income, expenses and payout on the loan??
How long has " Roadrunner Air" been in existance and how long have you been Pres??
Click to view CorpCons08's profile Mogul CorpCons08 1,128 posts since
Nov 14, 2007
2. Re: Secured Loan request/Private Equity offer for Eclipse 500 jet charter company Roadrunner Air Dec 18, 2007 7:41 PM
RR,

It may be possible for my firm to get you traditional financing for this purchase.
With traditional financing, you will give up no equity in your business or the jet.
If you would be interested in discussing this with me further you can contact me at d.skolnick@skolnick-associates.com.

Regards,
CC08
Click to view DomainDiva's profile Mogul DomainDiva 1,732 posts since
Oct 10, 2007
3. Re: Secured Loan request/Private Equity offer for Eclipse 500 jet charter company Roadrunner Air Dec 18, 2007 9:17 PM
Hi Tony, Welcome to the forum.

The Eclipse Jet is a very nice machine, bholds 2 crew 6 pax. There are open deliveries available for 2010 and prices are ranging from 1.595M to 1.795 M. The two million that you are looking for seems to be actually way shy of what you will need. For example...what will you do about your maintenance program and records? You will I assume operate under FAR PArt 135, there fore you will also need a GMM and additional company manuals....all FAA approved.

Have you even met your future PMI, POI and PAI? Do you have a location scouted out with hangar space, office space and maintenance?

What are your plans for pilot staffing? What sort of assistance in pilot training is Eclipse offering? Are they offering maintenance program/records assistance? Or will you need to farm that out? What about software? You will need to keep aircraft inventories as well as maintenance documents, pilot crew records and scheduling records for the aircraft. Have you made any arrangements for maintenance? You said you would be serving the Southwest, have you made any arrangements for maintenance and support - fuel- catering etc with any FBO's?

Do you have a business plan? Please give us some more details. (I have done start up airlines before, 121)
Click to view Uncle Leon's profile Mogul Uncle Leon 50 posts since
Dec 28, 2007
4. Re: Secured Loan request/Private Equity offer for Eclipse 500 jet charter company Roadrunner Air Dec 28, 2007 12:39 PM
Tony, I've been involved in aviation for almost 50 years. With all the bull krap invloved with main stream commercial air travel, these small jets, coupled with either business time sharing of time for business use or with smaller city (50K-500K population) un-scheduled transportation to smaller airports is definitely a future reality. However, the interim (transition) into these operations (especially the unscheduled transportation) will require time to build business. That will require plenty of money and patience.

Company executives often must travel on short notice. That results in expensive ticket prices. In addition they must go through the necessary security inconveniences. This requires more time (which is precious to biz execs). These small jets will provide far more convenience and efficency for approximately the same price as their commercial airline tickets purchased on short notice. How much more convenient to simply go to a smaller airport and immediately board the airplane for an immediate take off.

This is especially economically feaasible if this semi-charter service is shared with others going to the same area at approximately the same time.

There is currently such an air service operating in Florida between Orlando, Tallahassee, Fr. Lauderdale, and a few other destinations. (Sorry, I forget the company name.)
Click to view RRairceo1's profile Professional RRairceo1 8 posts since
Dec 18, 2007
5. Re: Secured Loan request/Private Equity offer for Eclipse 500 jet charter company Roadrunner Air Dec 30, 2007 9:36 PM
in response to: LUCKIEST
I'm not here to disclose facts about my business. I do not wish to do that for competitive advantage reasons.

I'm trying to figure out if anyone here knows who I can talk with to do a one state IPO/DPO - direct public offering for a C Corporation based in California.

If you know any attorneys or experts with this please let me know.

Thx
Tony
Click to view RRairceo1's profile Professional RRairceo1 8 posts since
Dec 18, 2007
6. Re: Secured Loan request/Private Equity offer for Eclipse 500 jet charter company Roadrunner Air Dec 30, 2007 9:42 PM
in response to: DomainDiva
Thank you for the insight. I'm not going to disclose the details of my situation due to competitive reasons.

The idea is that I originally could have done this for $600,000 startup, but the financial market crisis/bank credit crunch has really messed up my plans.

The $2 million is needed to show the banks I have collateral for loans, that's all. I use currency, stock, and commodity options to hedge my expenses.

www.flypogo.com found an investment bank to do what I'm doing, but on a larger scale. They couldn't help me due to a conflict of interest.

Let me ask you this, if I did a pink sheet IPO for this business, would you consider investing in it? Could you relay to other aviation types that there is a way to invest in this without a large initial outlay? For example, you could afford to invest $1,000 in a risky investment, rather than $500,000.
Click to view DomainDiva's profile Mogul DomainDiva 1,732 posts since
Oct 10, 2007
7. Re: Secured Loan request/Private Equity offer for Eclipse 500 jet charter company Roadrunner Air Dec 31, 2007 2:13 PM
in response to: RRairceo1
Sure, I would give you a grand with the provisio that I set up all the maintenance records, program and do the FAA certificate stuff. Its scary for me that you are brushing this aspect of the business off to the side so to speak. You DO realize that your aircraft will not leave the ground until you have all the bases covered?

Other aircraft types like me WILL NOT put their money into a venture that does not have all of the regulatory bases covered. I could probably help with some fund raising if you are committed to getting all the ducks in a row.
Click to view DomainDiva's profile Mogul DomainDiva 1,732 posts since
Oct 10, 2007
8. Re: Secured Loan request/Private Equity offer for Eclipse 500 jet charter company Roadrunner Air Jan 1, 2008 9:04 AM
in response to: RRairceo1
You may also want to check out the Virgin online reservation system for air charters that will be available early 2008. It is in beta test right now. Branson came across a start up called Smart Charter and it is creating a travel portal for 2500 air charter services and all air taxi services to come.
Click to view RRairceo1's profile Professional RRairceo1 8 posts since
Dec 18, 2007
9. Re: Secured Loan request/Private Equity offer for Eclipse 500 jet charter company Roadrunner Air Jan 16, 2008 9:46 AM
in response to: DomainDiva

This is very interesting information. Thank you.

Also, it looks like in March, the price of a new Eclipse 500 in the aftermarket is going to drop by about $400,000 due to the Eclipse Aviation announcement/arrangement to get a cash infusion from customers who put more cash up front for the jet.
Click to view RRairceo1's profile Professional RRairceo1 8 posts since
Dec 18, 2007
10. Re: Secured Loan request/Private Equity offer for Eclipse 500 jet charter company Roadrunner Air Jan 16, 2008 9:47 AM
in response to: Uncle Leon
Thank you for the encouragement. As of right now, there is no other jet charter priced competively compared to what I was going to offer either.

Tony
Click to view DCPJR1's profile Professional DCPJR1 4 posts since
Apr 6, 2008
11. Re: Secured Loan request/Private Equity offer for Eclipse 50 Apr 7, 2008 10:32 AM
What's the status of your start-up?

DayJet is what one poster was trying to think of out of FLA.

I'm an aviation consultant, primarily to Fortune companies (www.iviation.com)

David
Click to view DomainDiva's profile Mogul DomainDiva 1,732 posts since
Oct 10, 2007
12. Re: Secured Loan request/Private Equity offer for Eclipse 50 Apr 7, 2008 11:06 AM
in response to: DCPJR1
David, we probably need to speak. Contact info on profile.

DomainDiva
Click to view DCPJR1's profile Professional DCPJR1 4 posts since
Apr 6, 2008
13. Re: Secured Loan request/Private Equity offer for Eclipse 50 Apr 7, 2008 12:00 PM
in response to: DomainDiva
i emailed you yesterday i think from your web site. did you not get it?
Click to view DomainDiva's profile Mogul DomainDiva 1,732 posts since
Oct 10, 2007
14. Re: Secured Loan request/Private Equity offer for Eclipse 50 Apr 7, 2008 3:00 PM
in response to: DCPJR1
I will check that email this evening.
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