After devoting several years to market analysis, equipment evaluation, pricing structures, service areas and operational planning, Robert Crandall has decided to ground Pogo, his start up very light jet charter operation, before it ever left the ground. He says he's returning what remains of the operation's seed money to investors.

"I feel badly about it," he said April 15 of the decision. "It's just one of those ideas that didn't work out."

Although Pogo was usually described as an "air taxi," Crandall dismissed that label, saying, "I don't know what that means." Rather, he described the intended service as a typical FAR135 charter operation using small jets with trips confined to the northeastern United States. The group had considered several jets, but seemed finally to settle on the Eclipse 500, primarily for its low acquisition and operating costs. However, Eclipse declared bankruptcy earlier this year after delivering fewer than 300 aircraft.

"Two things did us in," Crandall said. "First, the airplane never got built, and in fact the company went bankrupt. The aircraft still can't operate in icing conditions. So the airplane failed. And while we could conceivably use alternate airplanes, that wouldn't have provided as great a price advantage versus existing alternatives. And secondly, you can't finance anything new these days, especially in aviation."

He estimated a need for $80 million for Pogo to begin operations and said he was in New York pursuing financing the day Bear Stearns failed - "Nice timing," he noted.

Even though he is exiting the market, the former American Airlines chief predicted, "You're going to see a lot of alternative models emerge in aviation" because with the continuing contraction of airline service, "it's getting harder and harder to go from Point A to B in the United States."

"There is a market out there for alterative models that will save people time," he said, but added he's unlikely to be the provider. "My guess is it's going to take quite a long time for the market to recover. If it takes ten years, I'll be 83. So maybe I'd try again, but that's beginning to push the envelope."

Photo credit: Eclipse Aviation