OpenAirplane and FlyOtto ceased operations on December 29, 2019. The aircraft rental and charter services sought to make processes easier and with less hassle for pilots and prospective passengers. Co-Founder and President Rod Rakic cited a discrepancy between the stated desire of pilots to use the OpenAirplane service and the numbers that actually showed up as the cause of its closure. On the charter side, FlyOtto needed far more capital to get to sustainability than the company’s leadership had first assumed—and lack of access to growth capital made it “impossible to get there,” according to Rakic.
OpenAirplane, FlyOtto Shut Down Operations
Key Takeaways:
- OpenAirplane and FlyOtto ceased operations in late 2019, with OpenAirplane's failure attributed to a significant discrepancy between pilot interest and actual utilization of its service.
- OpenAirplane had successfully innovated to provide a consistent, insurance-backed aircraft checkout for traveling pilots, but struggled because pilots ultimately overestimated their annual rental needs.
- FlyOtto, the charter service, ceased operations due to a much higher-than-expected capital requirement to achieve sustainability, which the company was unable to secure.
Key takeaways sponsored by Aviator Pro | Start Your Training ->
See a mistake? Contact us.
