BOCA RATON , Fla., May 20 (UPI) -- The small Florida airline DayJet has found a business model that works, but can't scrape up financing to expand to a profitable level, the company owner said.
Owner Ed Iacobucci told The New York Times the small-jet airline laid off 100 of its 260 workers, because it could not find $40 million to expand to "critical mass."
The airline's fleet of 28 Eclipse 500s serves 45 community airports. But the company's model was based on100 planes and full development of those markets, Iacobucci said.
Manufacturers of light planes, such as Cessna, Embraer and Honda, are also affected by the credit crunch in a market with potential to expand, industry analysts said.
There are about a dozen small-jet air companies that charter planes and serve regional airports, scheduling flights to take advantage of major airline scheduling gaps, the Air Taxi Association told the Times.
"All of the metrics are wonderful," Iacobucci said. "But we haven't been able to raise the capital."
