Tag Archives: ticket prices

731 Bits and Pieces 30

We speak with the President and CFO of DG Fuels LLC about producing Sustainable Aviation Fuel (SAF), and the Co-Founder and Chief AI at Fetcherr about continuous pricing models for airlines. We also take a look back at 2022.

Sustainable Aviation Fuel (SAF)

Christopher J. Chaput is the President of DG Fuels, LLC. He has over 23 years of experience as an executive, an investment banker, a restructuring advisor and investor, primarily in the aviation sector.

Christopher J. Chaput, the President of DG Fuels, LLC.
Christopher J. Chaput

DG Fuels is developing a Sustainable Aviation Fuel (SAF) production facility at Loring Commerce Centre in Limestone, Maine, the former Loring Air Force Base. Chris explains SAF and biofuels and describes how the DG Fuels process uses waste timber products and stranded electricity to make SAF efficiently and sustainably. An existing pipeline to the coast will facilitate the transport of the SAF to Boston and New York markets.

Prior to DG Fuels, Chris was a partner in and co-founder of RPK Capital Management, investing in commercial aircraft and other aviation-related assets. Chris was a partner and head of the Structured Finance Group at the Seabury Group where he arranged secured financings of aircraft and other assets. Chris was a senior member of the advisory team that represented US Airways in its merger with America West Airlines and that restructured US Airways, Air Canada, and Northwest Airlines in bankruptcy. Prior to that he structured and executed public and private aircraft-backed secured bonds at Morgan Stanley. Early in his career, Chris was the Managing Director-Corporate Finance at Northwest Airlines.

Chris earned his B.A. from Creighton University, magna cum laude, and his J.D., cum laude, from the University of Minnesota Law School, where he also taught Business Planning for two years as an adjunct professor.

Continuous pricing models for airlines

Dr. Uri Yerushalmi, the co-founder and chief AI officer at Fetcher.
Dr. Uri Yerushalmi

Dr. Uri Yerushalmi is the co-founder and chief AI officer at Fetcherr, an Israeli tech company that developed a proprietary AI-powered engine that predicts demand and enables continuous pricing for the airline industry. The company was founded in 2019 by experts rooted in deep learning, algorithmic trading, e-commerce, and the digitization of legacy architecture.

Uri explains the continuous pricing approach and how that can solve airline challenges and maximize revenue. Airlines typically employ dynamic pricing where the prices are bucketed into certain levels and change infrequently. Under a continuous pricing model, the price can be set at any level. Dynamic pricing is all that was allowed by the technology in the 80s. Now, however, deep learning and reinforcement learning technology can predict the behavior of the market by considering factors such as travel origins, destinations, number of stops, days of advance purchase, stay days, capacity (load factor), seasonality, and time of day.

Old pricing models are inefficient and utilize “middlemen” that introduce an added cost. Uri tells us that the efficiency of continuous pricing models negates the need for middlemen and creates a revenue uplift for the airlines.

Fetcherr technology is running live now with low-cost Azul Airlines. The company is onboarding a large traditional global airline and exploring advanced functionality with another major airline.

2022 I Can Hardly Remember

Our Main(e) Man Micah brings us his year-in-review piece. He originally thought 2022 was pretty quiet for him aviation-wise, but when he reflected on it Micah realized that quite a lot actually happened. 2022 was very much an #AvGeek year for Micah.

John Bush VSF50 VisionJet
Micah in the 787 headed for the UK
Dartmouth-Hitchcock Helicopter
Friends at Spurwink
More friends at Spurwink
Sunday Roast at The Greyhound Inn
Micah and Lt Hardinger

Hosts this Episode

Max Flight, our Main(e) Man Micah, and Brian Coleman.

695 Sustainable Aviation Fuel

Sustainable aviation fuel (SAF) and how it is being made available, how you can save on airline tickets, an F-35 shoots down a drone, and the eighth anniversary of the loss of flight MH370.

Sustainable Aviation Fuel

Richard Thacker, Atlantic Aviation
Richard Thacker

Richard Thacker is the Director of Strategy and Operations at Atlantic Aviation. Rich has been with Atlantic for more than 30 years and has been a leading voice for the company, and broadly in the aviation industry on increasing sustainability through education and outreach.

Atlantic operates one of the largest FBO networks in the U.S. and they provide a full suite of services to the private aviation sector. We asked Rich to come on the show and talk about sustainable aviation fuel (SAF) because Atlantic is making it available at some airports.

SAF is jet fuel and no change is required to the aircraft or ground support infrastructure. It can be freely co-mingled with JET-A. Rich explains why now is the time for sustainable aviation fuel. We look at sources, availability, and the cost of SAF.

There are two main producers of SAF at this time: Neste and World Energy. Most SAF comes from Neste, a supplier of renewable diesel and sustainable aviation fuel, through Avfuel. (See Neste’s role in sustainable aviation and Sustainable Aviation Fuel: Now Offering Neste MY SAF). World Fuel Services gets SAF through an agreement with World Energy.

Atlantic is providing SAF at its Aspen and Los Angeles locations but has plans for wider distribution. Rich notes that since SAF availability is primarily on the coast, road transportation is required to reach inland airports. For its Aspen facility, Atlantic uses renewable diesel in the tanker trucks since burning fossil fuel to deliver sustainable aviation fuel wouldn’t make sense.

Rich explains the “Book and Claim” process for purchasing fuel where SAF isn’t available. “Green credits” are purchased equal to the SAF premium and the SAF is consumed where it is available.

Atlantic is taking other measures to reduce carbon footprint, including switching to LED lighting and electrifying ground support equipment. For more on the classification of emissions, see the article What are scope 1, 2, and 3 emissions?

Scott’s Cheap Flights

Scott Keyes, Scott's Cheap Flights.
Scott Keyes

Brian Coleman interviewed Scott Keyes, the founder and chief flight expert from Scott’s Cheap Flights, a service that notifies subscribers about great airline deals from their home airport. We learn how a hobby turned into a business and Scott provides some good context for the current state of airline fares. Free and paid membership options are available.

Scott’s Cheap Flights serves nearly 2 million members and has a distributed team of more than fifty travel aficionados. Scott authored a bestselling book divulging some of the secrets used to find amazing deals for members, Take More Vacations: How to Search Better, Book Better Cheaper, and Travel the World.

Through April 30, 2022, Scott is offering Airplane Geeks listeners a 25% discount on a Premium membership. Use the discount code GEEKS.

Israeli News Desk

Eyal relates that an Israeli Defense Forces (IDF) spokesman released an announcement on March 1, 2022, about a shootdown of two Iranian UAVs in June 2021 carrying weapons destined for HAMAS. The interception and shootdown had been made by an Israeli F-35A, the first operational and actual kill for the F-35 family worldwide.

MH370

Rob Coates marks the eighth anniversary of the disappearance of flight MH 370. As of this date, the plane has still not been located.

American Helicopter Museum

Airplane Geeks listeners can enjoy a one-year individual membership at a 50% discount. For $25.00 (normally $50.00) you get:

  • Unlimited admission to the Museum for one year.
  • Two One-Day Guest Passes.
  • Admission to FamilyFest and SantaFest.
  • Invitations to Member Receptions.
  • 10% discount on gift shop purchases.

The offer is good through May 31, 2022, at this link.

Hosts this Episode

Max Flight, Rob Mark, Max Trescott, and Brian Coleman, with contributions from Eyal Shay and Rob Coates.

Episode 121 – Jason is Wired on Aviation

Jason Paur joins as guest. He’s a contributing writer for Wired.com where Jason posts to the Autopia blog. Find Jason on Twitter as @jasonpaur. We talk about the week’s aviation news and some of Jason’s recent articles, including Exclusive: We Fly An Electric Airplane and SpaceShipTwo First Glide Flight Details From The Pilot.

The week’s aviation news:

Mentions:

Also see Steve and Grant’s Australia Desk archive and their Flight Time Radio segments.

Follow the @AirplaneGeeks on Twitter and on Facebook, send us email at thegeeks@airplanegeeks.com, or leave a message on our listener line: (361) GEEKS01.

Opening and closing music is provided by Brother Love from the Album Of The Year CD. You can find his great music at http://www.brotherloverocks.com/.