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 on December 29, 2019, each succumbing to distinct business challenges.
- OpenAirplane, an aircraft rental service, failed because pilots' actual utilization and engagement fell significantly short of their initially expressed interest and estimated annual usage, despite the service successfully standardizing checkouts and gaining insurance industry support.
- FlyOtto, a charter service, closed due to an underestimation of the capital required for sustainability and an inability to secure the necessary growth funding.
Key takeaways sponsored by Aviator Pro | Start Your Training ->
See a mistake? Contact us.
