Air Taxi Growth Frozen By Credit Crunch

New York Times:

With fares rising and commercial air service increasingly unreliable for business travelers, Ed Iacobucci figured his plan for an air taxi service would be a no-lose proposition. So why is Mr. Iacobucci shaking his head in frustration?

The reason: Just as his company, DayJet, had proved that there was a business in using small jets for short-haul, on-demand service and was poised to expand its market, the credit market froze. DayJet was unable to raise $40 million it needed to grow, Mr. Iacobucci said. Expansion plans were postponed and the company laid off 100 of its 260 workers.

"All of the metrics are wonderful," he said. "We're getting repeat buys. We're getting people buying at the price points we want. But we haven't been able to raise the capital."

Read the whole story: New York Times