What helicopter service should I use?

Fly-By-Night Helicopter Service In mid-July 2002, the Youngstown, Ohio, community was shocked by an announceme?

• Fly-By-Night Helicopter Service In mid-July 2002, the Youngstown, Ohio, community was shocked by an announcement from Crow Airline that it would discontinue flights to and from the Youngstown airport by the end of the year. Crow provides commuter airline service to major hub airports in Cleveland, Pittsburgh, and Chicago, as well as direct service to such cities as Buffalo, Rochester, Toledo, and Indianapolis. Although a number of very small air carriers provide service, Crow is the only major air carrier serving Youngstown. The business community leaders became quite concerned with the possibility of two-hour drives to airports in Cleveland and Pittsburgh to catch flights. The Youngstown Port Authority met with the business leaders to ascertain suggestions that could alleviate this blow to air travelers. A number of alternatives were suggested, including recruitment of a new commuter airline, establishment of an airport buStservice, and formation of a joint-venture air commuter to connect Youngstown to Ch;veland and Pittsburgh. Mter the announcement of the Port Authority's meeting in the local newspaper, Da~rin Yugg, President of Fly-By-Night Helicopter Service (FBN), contacted the Port Authority executive director with the idea of providing helicopter service between Youngstown and the Cleveland and Pittsburgh airports. The initial discussion was positive, and Mr. Yugg felt that enough interest existed to develop and present a formallProposal to the Port Authority. Mr. Yugg was a seasoned helicopter pilot who had served with distinction in the Vietnam War. He had successfully built a helicopter service in the Youngstown area and currently had a fleet of 10 choppers. FBN's primary market was providing service to construction, agriculture, and pipeline companies. FBN would fly client personnel to construction job sites, spray farm fields, and provide surveillance of pipelines. FBN's service was highly regarded in the business community, and it enjoyed a reputation as a well-managed and financially strong company. The shift from FBN's current type of business into shuttling passengers between airports was a new business venture, one with which Mr. Yugg did not have experience. He was somewhat concerned about the marketability of a helicopter shuttle service and, in particular, the acceptance of such a service by passengers not accustomed to flying in a helicopter. The helicopter flight would save passengers about 75 minutes on the commute to either Cleveland or Pittsburgh, but the cost of operating a helicopter would result in a round-trip charge approximately 2.5 times greater than a bus fare and 1.5 times greater than the current Crow fare. Case Questions 1. What additional demand factors should Mr. Yugg consider as he develops his proposal? 2. As executive director of the Youngstown Port Authority, what areas would you want to see addressed in the pr~posal presented by FBN? ,. 3. Given the information presented, would you recommend that FBN establish a helicopter shuttle service? Why or why not?

• Answer:

  You should do your own homework.