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Market Summary

·         Market - Past

o        Non-scheduled air transportation produced $2.06 billion market in 1993(1)

§         70 companies, an average of $3.78 million per company for the year

o        Aircraft Charters have risen a drastic 352% in the recent past (1)

o        $25.8 billion spent on air travel in 1991 alone (2)

o        73.8 million airplane trips made by pleasure travelers in 1994 (3)

(1) Ward’s Business Directory of the U.S. Private and Public Companies
(2) U.S. Bureau of Economic Analysis
(3) U.S. Travel Data Center

·         Market - Present Options (Competition)

o        Airline First Class travel

o        Private Jet Charter

o        Other Fractional Ownership programs (mostly for business/corporate sector)

§         FlexJet (Bombardier Aerospace Corporation)

§         Net Jets (Executive Jet Aviation Incorporated)

·         Market Future

o        Estimated 3,350 Indianapolis households can afford program (4)

§         Only 50 Fractional Owners needed for first LPI aircraft (1.5% of target group)

o        Indianapolis area extremely strong market with very high leisure travel index of 152 (U.S. median is 80) (5)

(4) Sales & Marketing Management’s Metro Market Rankings, 1996
(5) Purchase Potential Index

·         Our Prices in comparison:

o        $100,000 minimum buy-in for our first year versus approximately $700,000 - $1,000,000+ for either previously mentioned Fractional Ownership program

o        40% less than an identical 7 day charter in same type aircraft

o        Up to 10% less than 8 first class airline fares on an 8 hour round trip

 

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