GNA A BLUE OCEAN BUSINESS PLAN 3 GNA A BLUE OCEAN BUSINESS PLAN GRAND NATIONAL AIR S PRODUCT aircraft that normally carry up to 351 3 1 Economy The initial fare structure will emulate unrestricted first class fares This is an outstanding value to the GNA passenger receiving quasi private jet service for a fraction of the private jet price and receiving unmatched service for the same price as standard walk up first class BUSINESS CONCEPT Grand National Air is as stated the resumption and expansion of Grand Class service previously provided by MGM Grand Air between 1987 and 1995 MGM utilized 3 VIP configured 727 100 s acquired from Regent Air and subsequently added 3 DC 8 s similarly configured to assume the scheduled service releasing the 727 s to charters At the end of MGM s operations the 727 s were placed back into scheduled service in an effort to revive the original concept but the airline liquidated shortly thereafter MGM acquired a 757 for a short period in a standard passenger configuration utilizing the aircraft for on demand and scheduled charter but the aircraft was subsequently released from service Grand National s goal is to escalate the Grand Class product to a new level of grandeur expanding the aircraft size utilizing a newer generation aircraft and elevating the service for which MGM became famous The market will also be expanded mining connections with foreign carriers and carrying freight in the virtually empty cargo deck Eventual charter utilization will be more robust with the aircraft being FANS compliant Because of the ER fuel capacity and low operating weights the aircraft will have range capability comparable to a 777 In short the GNA aircraft will be world class all on levels The design concept encompasses high end decor with practical utility as well as accommodation for high passenger traffic and high aircraft utilization more so than for a traditional VIP aircraft 3 2 VALUE PROPOSITION GNA will provide the following values to its Grand Class Passengers Privacy Separation from the general public through the use of private terminals The separate terminal has as much to do with passenger acquisition as does the service model The Grand Class passenger wishes nothing to do with airline terminals or airlines in general Security A primary reason beyond convenience that celebrities and high profile passengers use private jets concerns security and threats of terrorism One of GNA s critical marketing and operating strategies will involve elevated security tactics Because only Grand Class customers use the airline s private terminals they have a user friendly security environment with focused scrutiny where it belongs All GNA aircraft and terminal facilities will be under surveillance 24 hours a day by dedicated security personnel and enhanced security technology Stricter than normal screening procedures will be applied to all GNA employees specifically at the airports All GNA Captains will be FFDO Federal Flight Deck Officer trained and qualified carrying a compliant firearm in the cockpit FFDO training also includes training for intervention should the aircraft be compromised Operational Integrity Consistent on time performance will be maximized by attention to detail in maintenance and lack of entanglement from traditional airline logistics The spare aircraft positioned on hot reserve in the middle of the country will maximize schedule integrity Grand Class Service Concierge quality customer service on all levels during check in preflight inflight and in the executive lounges with a flight attendant to passenger ratio of 6 1 State of art inflight amenities high speed broadband Internet on board printers a full gamut of entertainment and inflight phone call receive capability which also connects passengers to the flight attendants or other seats on the aircraft Dining services unlike anything in the airline world The MGM galley crew of 1 miraculously pulled off restaurant quality food with a hot plate an airline grade oven and a microwave all on a counter behind the small bar GNA will have 2 complete state of the art galleys utilizing NuWave technology of convention conduction and induction cooking This system will produce award winning restaurant food driven by a signature chef prepped in full kitchens ramp side at each airport Additionally there will be a branded NY and LA deli in the forward lounge bar that will serve a partial menu of its signature food Customers with 24 hour notice may have their own food catered to the aircraft prepared and served by the crew To improve efficiency passengers will be encouraged to select their choices through the online portal or app up to 24 hours before the flight reducing waste and ensuring the passenger s choice onboard The menus will be changed periodically and planned several months in advance so that they integrate with the passengers customer service interface Generous frequent flier program One leg for every 5 flown which can be assigned to anyone the customer wishes including charity Added value The Companion The 4 private suites in the aft section will sell for150 of the normal fare However there are two seats in each suite and the customer can bring a companion at no charge making the suite the best value on the airplane Additionally there are two love seats at row 10 Though the seat is sold as a solo seat if the customer wishes to bring a close companion that companion travels at half price Value proposition schematics further illustrate the concept Safety Having a 30 year airline captain check airman and former director of training as CEO will drive home added focus on safety to the customer The CEO will not only remain current on the aircraft operating ferry flights but will also be qualified as a simulator instructor simulator check airman and line check airman from the jump seat providing further collateral press value The highest standards in hiring and training pilots will come straight from the top along with a hand picked highly experienced flight operations team Private Jet Emulation Spectacular luxury aircraft accommodating 52 56 passengers in 28 RETURN TO TOC RETURN TO TOC 29
GNA A BLUE OCEAN BUSINESS PLAN 3 GNA A BLUE OCEAN BUSINESS PLAN GRAND NATIONAL AIR S PRODUCT aircraft that normally carry up to 351 3 1 Economy The initial fare structure will emulate unrestricted first class fares This is an outstanding value to the GNA passenger receiving quasi private jet service for a fraction of the private jet price and receiving unmatched service for the same price as standard walk up first class BUSINESS CONCEPT Grand National Air is as stated the resumption and expansion of Grand Class service previously provided by MGM Grand Air between 1987 and 1995 MGM utilized 3 VIP configured 727 100 s acquired from Regent Air and subsequently added 3 DC 8 s similarly configured to assume the scheduled service releasing the 727 s to charters At the end of MGM s operations the 727 s were placed back into scheduled service in an effort to revive the original concept but the airline liquidated shortly thereafter MGM acquired a 757 for a short period in a standard passenger configuration utilizing the aircraft for on demand and scheduled charter but the aircraft was subsequently released from service Grand National s goal is to escalate the Grand Class product to a new level of grandeur expanding the aircraft size utilizing a newer generation aircraft and elevating the service for which MGM became famous The market will also be expanded mining connections with foreign carriers and carrying freight in the virtually empty cargo deck Eventual charter utilization will be more robust with the aircraft being FANS compliant Because of the ER fuel capacity and low operating weights the aircraft will have range capability comparable to a 777 In short the GNA aircraft will be world class all on levels The design concept encompasses high end decor with practical utility as well as accommodation for high passenger traffic and high aircraft utilization more so than for a traditional VIP aircraft 3 2 VALUE PROPOSITION GNA will provide the following values to its Grand Class Passengers Privacy Separation from the general public through the use of private terminals The separate terminal has as much to do with passenger acquisition as does the service model The Grand Class passenger wishes nothing to do with airline terminals or airlines in general Security A primary reason beyond convenience that celebrities and high profile passengers use private jets concerns security and threats of terrorism One of GNA s critical marketing and operating strategies will involve elevated security tactics Because only Grand Class customers use the airline s private terminals they have a user friendly security environment with focused scrutiny where it belongs All GNA aircraft and terminal facilities will be under surveillance 24 hours a day by dedicated security personnel and enhanced security technology Stricter than normal screening procedures will be applied to all GNA employees specifically at the airports All GNA Captains will be FFDO Federal Flight Deck Officer trained and qualified carrying a compliant firearm in the cockpit FFDO training also includes training for intervention should the aircraft be compromised Operational Integrity Consistent on time performance will be maximized by attention to detail in maintenance and lack of entanglement from traditional airline logistics The spare aircraft positioned on hot reserve in the middle of the country will maximize schedule integrity Grand Class Service Concierge quality customer service on all levels during check in preflight inflight and in the executive lounges with a flight attendant to passenger ratio of 6 1 State of art inflight amenities high speed broadband Internet on board printers a full gamut of entertainment and inflight phone call receive capability which also connects passengers to the flight attendants or other seats on the aircraft Dining services unlike anything in the airline world The MGM galley crew of 1 miraculously pulled off restaurant quality food with a hot plate an airline grade oven and a microwave all on a counter behind the small bar GNA will have 2 complete state of the art galleys utilizing NuWave technology of convention conduction and induction cooking This system will produce award winning restaurant food driven by a signature chef prepped in full kitchens ramp side at each airport Additionally there will be a branded NY and LA deli in the forward lounge bar that will serve a partial menu of its signature food Customers with 24 hour notice may have their own food catered to the aircraft prepared and served by the crew To improve efficiency passengers will be encouraged to select their choices through the online portal or app up to 24 hours before the flight reducing waste and ensuring the passenger s choice onboard The menus will be changed periodically and planned several months in advance so that they integrate with the passengers customer service interface Generous frequent flier program One leg for every 5 flown which can be assigned to anyone the customer wishes including charity Added value The Companion The 4 private suites in the aft section will sell for150 of the normal fare However there are two seats in each suite and the customer can bring a companion at no charge making the suite the best value on the airplane Additionally there are two love seats at row 10 Though the seat is sold as a solo seat if the customer wishes to bring a close companion that companion travels at half price Value proposition schematics further illustrate the concept Safety Having a 30 year airline captain check airman and former director of training as CEO will drive home added focus on safety to the customer The CEO will not only remain current on the aircraft operating ferry flights but will also be qualified as a simulator instructor simulator check airman and line check airman from the jump seat providing further collateral press value The highest standards in hiring and training pilots will come straight from the top along with a hand picked highly experienced flight operations team Private Jet Emulation Spectacular luxury aircraft accommodating 52 56 passengers in 28 RETURN TO TOC RETURN TO TOC 29
GNA A BLUE OCEAN BUSINESS PLAN GNA A BLUE OCEAN BUSINESS PLAN 9 months into service GNA will begin Saturday Ops utilizing the scheduled service off day in each city for LA Hawaii and NY London turns Aircraft 4 completed Year 2 Month 9 in the Target and Fallback scenarios will commence scheduled NY London service See Case Scenarios In those same scenarios at Year 3 Month 9 aircraft 5 and 6 completions will trigger daily except Saturday service between SFO and NY further triggering another Saturday Op SFO Hawaii The Survival case delays NY London scheduled service by a year because aircraft 4 completes in Year 3 with no further provision for 5 6 Please refer to the Operational Strategy section Another major revenue source of Grand Class service involves charter operations both on demand and scheduled moving sports teams entertainers and special interest operations Beyond Year 3 worldwide flag service to selected destinations will be explored 3 4 Using the hierarchy model FREIGHT THE SLEEPING GIANT The 767 300 has 13 pallet ULD positions below the wing Because of the restricted passenger load of 52 56 a maximum of 2 positions would be needed for passenger luggage This leaves 11 positions and a bulk cargo bin open for LA NY scheduled freight In 2014 according to the T100 data 66 312 775 pounds of freight and 12 108 815 pounds of mail were transported between LAX and JFK Only 508 873 of those pounds were carried by dedicated freight carriers the rest carried by passenger airlines 3 3 GNA at 100 load factor can lift 45 000 pounds under the wing on each segment Depending on demand GNA can supplement revenue by carrying mail and or non hazardous freight essentially subsidizing the fuel costs of the operation The possible drawback to this strategy could be impact on the passengers perceptions A primary focus points of GNA s value proposition being security if the Grand Class passenger would consider freight under the wing added risk then this must be considered All the major airlines carry freight to the extent they can on passenger flights and freight has not been a target of terrorism primarily because of it s unpredictable movement Nevertheless the option must be carefully scrutinized in relation to Grand Class passenger expectations From a pure cash flow perspective it makes sense to supplement revenue with non threatening freight and mail The financial projections of this business plan present cases with and without freight revenue SCHEDULE GNA will operate as MGM did two flights a day between LAX and JFK in each direction daily except Saturday The expectation is that demand will necessitate a third flight each way Post liquidation chatter for MGM focused on lack of frequency but 2 flights a day are an adequate start 3 5 FLEET The proposed platform for GNA s entrance into service is a 3 aircraft fleet of Boeing 767 ERs intended to be sister ships as identical as possible in original manufacture airframe and components Aircraft 4 5 and 6 are planned for Target and Fallback scenarios with the Survival scenario producing aircraft 4 all paid for with cash from revenues The plan is to zero time the airplanes by completing all progressive checks and upcoming ADs during completion ensuring reliability and providing a year of uninterrupted service The aircraft will also exit completion ETOPS equipped and maintained with ETOPS authority obtained by month 9 Additionally the following enhancements are under consideration 30 RETURN TO TOC Winglets External Cameras Integral Airstairs RETURN TO TOC 31
GNA A BLUE OCEAN BUSINESS PLAN GNA A BLUE OCEAN BUSINESS PLAN 9 months into service GNA will begin Saturday Ops utilizing the scheduled service off day in each city for LA Hawaii and NY London turns Aircraft 4 completed Year 2 Month 9 in the Target and Fallback scenarios will commence scheduled NY London service See Case Scenarios In those same scenarios at Year 3 Month 9 aircraft 5 and 6 completions will trigger daily except Saturday service between SFO and NY further triggering another Saturday Op SFO Hawaii The Survival case delays NY London scheduled service by a year because aircraft 4 completes in Year 3 with no further provision for 5 6 Please refer to the Operational Strategy section Another major revenue source of Grand Class service involves charter operations both on demand and scheduled moving sports teams entertainers and special interest operations Beyond Year 3 worldwide flag service to selected destinations will be explored 3 4 Using the hierarchy model FREIGHT THE SLEEPING GIANT The 767 300 has 13 pallet ULD positions below the wing Because of the restricted passenger load of 52 56 a maximum of 2 positions would be needed for passenger luggage This leaves 11 positions and a bulk cargo bin open for LA NY scheduled freight In 2014 according to the T100 data 66 312 775 pounds of freight and 12 108 815 pounds of mail were transported between LAX and JFK Only 508 873 of those pounds were carried by dedicated freight carriers the rest carried by passenger airlines 3 3 GNA at 100 load factor can lift 45 000 pounds under the wing on each segment Depending on demand GNA can supplement revenue by carrying mail and or non hazardous freight essentially subsidizing the fuel costs of the operation The possible drawback to this strategy could be impact on the passengers perceptions A primary focus points of GNA s value proposition being security if the Grand Class passenger would consider freight under the wing added risk then this must be considered All the major airlines carry freight to the extent they can on passenger flights and freight has not been a target of terrorism primarily because of it s unpredictable movement Nevertheless the option must be carefully scrutinized in relation to Grand Class passenger expectations From a pure cash flow perspective it makes sense to supplement revenue with non threatening freight and mail The financial projections of this business plan present cases with and without freight revenue SCHEDULE GNA will operate as MGM did two flights a day between LAX and JFK in each direction daily except Saturday The expectation is that demand will necessitate a third flight each way Post liquidation chatter for MGM focused on lack of frequency but 2 flights a day are an adequate start 3 5 FLEET The proposed platform for GNA s entrance into service is a 3 aircraft fleet of Boeing 767 ERs intended to be sister ships as identical as possible in original manufacture airframe and components Aircraft 4 5 and 6 are planned for Target and Fallback scenarios with the Survival scenario producing aircraft 4 all paid for with cash from revenues The plan is to zero time the airplanes by completing all progressive checks and upcoming ADs during completion ensuring reliability and providing a year of uninterrupted service The aircraft will also exit completion ETOPS equipped and maintained with ETOPS authority obtained by month 9 Additionally the following enhancements are under consideration 30 RETURN TO TOC Winglets External Cameras Integral Airstairs RETURN TO TOC 31
GNA A BLUE OCEAN BUSINESS PLAN 3 6 GNA A BLUE OCEAN BUSINESS PLAN hind the bar which also augments the main galley AVIONICS Although initial service will be domestic GNA aircraft will be FANS and international regulatory compliant emerging from completion with Dual Honeywell Pegasus FMCs Dual Honeywell MCDUs Triple Rockwell Collins or Honeywell MMR GPS Single Rockwell Collins or Honeywell FANS approved ARINC 724B ACARS MU ARINC 740 or 744 Printer Center ARINC 716 VHF T R or ARINC 758 VDR Dual channel Inmarsat or Iridium SATCOM including EICAS SATCOM alert messages FMC OPC S W options to enable ATS DL RNP GPS Navigation ADS B Out ELES EHS ES TCAS 7 1 FOQA capability 3 7 POWER AND WIRING The galleys and IFE communications systems require advanced and redundant AC power capabilities throughout the aircraft including AC to each seat position as well as USB and Ethernet interfacing 3 8 LOUNGE ENTRANCE INTERIOR 3 8 1 THEME The design theme of GNA is Art Deco elements of this theme appearing in the concept elevations Classic Deco lines and specific features including monuments art detailing seat and cabinetry design will celebrate an ambiance of historic elegance Additionally GNA aircraft have a cruise ship character in that there are distinguishable thematic sections of the aircraft The two themes of Deco and Ship bring to the imagination an airborne Queen Mary Thus the GNA cruise ship of the air will utilize classic elements of one of America s most unique eras as well as modern features that the Grand Class passenger expects See Elevation Legend for links to all elevations and LOPA and LOPA GALLERY for AC floor plan 3 9 SECTIONS 3 9 1 FRONT LOUNGE DELI The forward section is divided from the rest of the cabin at the L2 entrance and contains a full bar with fixed stools and a stand up bar rail The bar will be branded with NY and LA established deli s and serve a partial menu from the partner s brand via a galley be32 RETURN TO TOC BAR RETURN TO TOC 33
GNA A BLUE OCEAN BUSINESS PLAN 3 6 GNA A BLUE OCEAN BUSINESS PLAN hind the bar which also augments the main galley AVIONICS Although initial service will be domestic GNA aircraft will be FANS and international regulatory compliant emerging from completion with Dual Honeywell Pegasus FMCs Dual Honeywell MCDUs Triple Rockwell Collins or Honeywell MMR GPS Single Rockwell Collins or Honeywell FANS approved ARINC 724B ACARS MU ARINC 740 or 744 Printer Center ARINC 716 VHF T R or ARINC 758 VDR Dual channel Inmarsat or Iridium SATCOM including EICAS SATCOM alert messages FMC OPC S W options to enable ATS DL RNP GPS Navigation ADS B Out ELES EHS ES TCAS 7 1 FOQA capability 3 7 POWER AND WIRING The galleys and IFE communications systems require advanced and redundant AC power capabilities throughout the aircraft including AC to each seat position as well as USB and Ethernet interfacing 3 8 LOUNGE ENTRANCE INTERIOR 3 8 1 THEME The design theme of GNA is Art Deco elements of this theme appearing in the concept elevations Classic Deco lines and specific features including monuments art detailing seat and cabinetry design will celebrate an ambiance of historic elegance Additionally GNA aircraft have a cruise ship character in that there are distinguishable thematic sections of the aircraft The two themes of Deco and Ship bring to the imagination an airborne Queen Mary Thus the GNA cruise ship of the air will utilize classic elements of one of America s most unique eras as well as modern features that the Grand Class passenger expects See Elevation Legend for links to all elevations and LOPA and LOPA GALLERY for AC floor plan 3 9 SECTIONS 3 9 1 FRONT LOUNGE DELI The forward section is divided from the rest of the cabin at the L2 entrance and contains a full bar with fixed stools and a stand up bar rail The bar will be branded with NY and LA established deli s and serve a partial menu from the partner s brand via a galley be32 RETURN TO TOC BAR RETURN TO TOC 33
GNA A BLUE OCEAN BUSINESS PLAN GNA A BLUE OCEAN BUSINESS PLAN SHOWER RT FRONT 3 9 2 ENTRANCE MID SECTION The primary element of the mid cabin is a water feature facing the L2 door a flat polycarbonate sheet with a water stream operational during boarding and deplaning PARTITIONS 3 9 4 AFT SLEEPER SECTION The AFT section is the quiet sleeper area comprised of 4 private Suites with fold down bunks and 9 sleeper cubicles RT MID 3 9 3 STATEROOMS PARTITIONED ROW The 3rd section consists of a private curtained row behind a stained glass type partition Aft of the partitioned rows are enclosed Staterooms on each side which offer seating for 4 and convert into sleeper compartments Aft of the RT Stateroom is the main Galley and aft of the LFT Stateroom are a mid lav and closet LFT AFT Aft Lavs Shower The L4 passage contains the entrance to Suite 4 as well as two lavs and a shower The shower is connected to the right lav for the Master Class configuration See next section RT STATEROOM AFT 34 RETURN TO TOC RETURN TO TOC 35
GNA A BLUE OCEAN BUSINESS PLAN GNA A BLUE OCEAN BUSINESS PLAN SHOWER RT FRONT 3 9 2 ENTRANCE MID SECTION The primary element of the mid cabin is a water feature facing the L2 door a flat polycarbonate sheet with a water stream operational during boarding and deplaning PARTITIONS 3 9 4 AFT SLEEPER SECTION The AFT section is the quiet sleeper area comprised of 4 private Suites with fold down bunks and 9 sleeper cubicles RT MID 3 9 3 STATEROOMS PARTITIONED ROW The 3rd section consists of a private curtained row behind a stained glass type partition Aft of the partitioned rows are enclosed Staterooms on each side which offer seating for 4 and convert into sleeper compartments Aft of the RT Stateroom is the main Galley and aft of the LFT Stateroom are a mid lav and closet LFT AFT Aft Lavs Shower The L4 passage contains the entrance to Suite 4 as well as two lavs and a shower The shower is connected to the right lav for the Master Class configuration See next section RT STATEROOM AFT 34 RETURN TO TOC RETURN TO TOC 35
