The DK Effect...
Rick Eriksen (to view the article press the picture link)


The Orwellian Illusion:
Why Business Aviation is Broken and How We’re Fixing It. The business of business aviation is currently a bird with a broken wing. It tries to fly, it goes through the motions of flight, but it cannot do so profitably or sustainably. For decades, the industry has been held together not by sound logic or operational efficiency, but by a masterful display of "doublethink" and linguistic obfuscation.
As someone who has been in this cockpit since 1962—from washing planes at Van Nuys to founding Midwest Air Charter (now DHL) and creating and co-founding JSSI—I’ve watched the "experts" replace aviation skill sets with marketing con jobs. It is time to stop the music and look at the wreckage of the current models before the "day the music dies".
The "Fractional" Magic Trick.
The industry’s greatest "innovation" wasn't a better engine or a more efficient wing; it was a euphemism. When corporate jet prices soared past $15 million and sales dried up, salesmen realized they needed a plan to sell these "toys". They took a concept everyone already disliked—time-sharing—and re-branded it with the more "allegorical and venerated" name: Fractional.
The math behind it was even more creative than the name. The pitch was simple: put four owners on one $15 million plane. Instead of one owner paying $15 million, four "marks" would each pay $5 million. Suddenly, a $15 million aircraft was generating $20 million in sales, netting the fractional company an instant $5 million profit.
It sounded great on paper, but it ignored the fundamental laws of time, space, and distance.
The Deadhead Debacle.
The "itsy-bitsy" problem the masterminds overlooked is a matter of basic logic: what happens when your four owners all want to go in four different directions at once? The industry’s "solution" was to buy more airplanes to service the original owners. But the problem only snowballed. Soon, you had eight owners wanting to go in eight directions on two planes, or 32 owners on a single aircraft—more owners than there are days in a month. This creates massive "deadhead" legs—empty planes flying across the country just to reposition for the next passenger.
I’ve seen this absurdity firsthand. I once sat next to a NetJets pilot on a commercial flight from JFK to LAS who told me there were seven other NetJets pilots on that same flight. Eight pilots were being paid to fly commercial just to reposition aircraft the next day. This is the "standard model," and it is exactly why these companies lose billions.
Safety as a Sales Pitch. When the math fails, the industry turns to "doublethink".
They tell customers, "You have to be in a new airplane to be safe". This is a lie designed to fuel more sales. Safety is not tied to a calendar; it is tied to maintenance and airframe hours. A jet built to FAR Part 25 standards is legal and safe until it hits roughly 100,000 hours, provided it is properly maintained. For reference, both Air Force One aircraft were built in 1989. If an older plane is good enough for the President, the "importance" of a fractional owner isn't the reason they're being pushed into a new tail number—it’s the commission.
The "POA" and the Looming Collapse. In these fractional models, the customers unknowingly form what I call a Plane Owners Association (POA). When the model incurs inefficiency and deadhead costs, the POA—the owners—are the ones who ultimately pick up the tab.
Look at the Delta/Wheels Up $1.86 billion debacle. Wheels Up isn't a fractional, so it had no POA to bail it out; it needed Delta to step in after losing billions. In a fractional setup, those same billions in losses are quietly absorbed by the owners. Whether it's "cards," "shares," or "piggyback charter," the result is the same: the customer gets fleeced while the operator struggles to stay solvent. A New Direction: OD'NACS.
We are at a "Malcom McLean moment." Just as McLean revolutionized shipping by realizing that hand-loading ships was stupid and inefficient, we have realized that the current business aviation model is broken beyond repair.
I have developed a solution that moves past the cons and the "cloudy vagueness" of the current industry. We call it OD'NACS. This isn't about "Uber for Jets," which was another failed attempt to slap a coat of paint on a crumbling structure. This is a complete change for the better, forever. Our system is built on a simple, revolutionary concept: it actually works for everyone.
