2. Low-cost aviation services to support the US
Army and US Air Force’s Close Air Support
training program
- Substitute high-performance fuel-efficient propeller aircraft
owned by Paladin Aviation for high-cost US Air Force A-10, F-
15 and F-16 aircraft.
- Provide rapid response capability leveraging the customer’s
buying power selling at the lowest level.
- Deliver a solution that decreases USAF aircraft operational
costs while increasing military readiness.
3. MANAGEMENT
Charlie Loomis, Founder/CEO
10 years F-15C Avionics Technician, 10 years Ground Controller-Instructor
Steve Christopher, COO
15 years government contracting, Masters Degree in Management,
currently the Electronic Warfare Program Manager for Phoenix Air
Rickey Smith, CTO
40 years in aviation experience, Director of Aircraft Services for Phoenix Air
ADVISORS
Alan Armstrong, Attorney at Law, 33 years aviation litigation experience,
Chairman of the Aviation Section of the State Bar of Georgia
PRODUCTION
Mike O’Sullivan, Aircraft Manufacturing, SuperMarine Aircraft LLC
David Smith, Communication and Sensor Integration, Stark Aerospace Inc
TEAM
5. COMPETITIONCUSTOMER REQUIREMENTS
Low-Cost
Quick Reaction Capability
Video Transmit Capability
Air to Ground Ordnance Delivery
Operate from Unimproved Airfields
Greater than 3 hours playtime
Operate in FAA/military Airspace
Military Comms Compatibility
Jet-A and MOGAS Compatibility X
X
X
X
X
X
X
X
X X
X
8. 274 ASOS
Active Duty Ground Controller Locations
Nellis AFB
6 CTS
Ft Irwin
12 CTS/NTC
Ft Bliss
7 ASOS/ 1 AD
Ft Hood
3 ASOG/
712 ASOS
9 ASOS/
1 CAV
11 ASOS/
3 ACR
Ft Sill
Det 1,
6 CTS
Barksdale AFB
Det 1,
548 CTS
13 ASOS/4ID
Ft Carson
Ft Riley
10 ASOS/1 ID
19 ASOS/101 ABN
Ft Campbell
Det 1, 10 ASOS3/1 ID
Ft Knox
20 ASOS/10 MTN
Ft Drum
Pope Field 14 ASOS/
82 ABN
Hurlburt Fld
1C4 Tech School
Det 3, 342 TRS
Ft Polk
Det 1, 20 ASOS/
4/10 MTN
Ft Benning
Det 1, 15 ASOS/
3/3 ID
Moody AFB
93 AGOW
Ft Stewart 15 ASOS
/3ID(M)
- 3 ASOG
- Training
- 18 ASOG
- 93 AGOW
18 ASOS/
682 ASOS
9. National Guard Ground Controller Locations
122 ASOS
182 ASOG
168 ASOS
169 ASOS
274 ASOS
116 ASOS
165 ASOS238 ASOS
124 ASOS
118 ASOS
194 ASOG
111 ASOS
Peoria
Boise
Tacoma
Syracuse
Meridian
Badin
Pineville Savannah
148 ASOS
147 ASOS
113 ASOS
Houston146 ASOS
Oklahoma City
Terre Haute
Salina
284 ASOS
227 ASOS
Ft Dix
- 182 ASOG
- 194 ASOG
Harrisburg
10. AF/Army Special Operations Locations
-Training
- 720 STG
- 17 ASOS
OL-E; 17 ASOS
2 RGR BN
1 SFG
Joint Base
Lewis-McChord
19 SFG
Draper
Yuma
SOTACC
10 SFG
Ft Carson
Birmingham
20 SFG
Hurlburt Fld
720 STG
7 SFG
17 ASOS
75 RGR RGT
3 RGR BN
Hunter AAF
OL-A; 17 ASOS
1 RGR BN
Ft Bragg
724 STG/
3 SFG
5 SFG
Ft Campbell
11. FINANCIAL PROJECTIONS
Amount in $000
2013 2014 2015 2016 2017 2018
US Air Force $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
US Army $0.0 $250.0 $3,600.0 $5,400.0 $7,200.0 $9,000.0
Total revenues $0.0 $250.0 $3,600.0 $5,400.0 $7,200.0 $9,000.0
Salary/Wages $0.0 $220.0 $292.0 $366.0 $507.0 $579.0
Aviation Fuel $0.0 $4.2 $51.1 $76.7 $102.2 $127.8
General and Administrative $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Marketing Expenses $5.0 $60.0 $60.0 $60.0 $60.0 $60.0
Rent and Utilities $0.0 $10.3 $46.4 $69.5 $88.9 $112.1
Interest Expenses (6.5%) $14.8 $178.2 $178.2 $178.2 $178.2 $178.2
Miscellaneous Costs $0.0 $29.3 $67.5 $93.8 $123.9 $171.0
Total expenses $19.8 $502.0 $695.2 $844.2 $1,060.2 $1,228.1
Income before taxes -$19.8 -$252.0 $2,904.8 4,555.8 $6,139.8 $7,871.9
Taxes (35%) $0.0 $0.0 -$1,016.7 -$1,594.5 -$2,148.9 -$2,755.2
Net income -$19.8 -$252.0 $1,888.1 $2961.3 $3,990.9 $5,116.7
Who loves liberty, freedom, capitalism? This presentation is for you!!Hello, I’m Charlie, founder of Paladin Aviation a third party contractor to the USAF and US Army providing Close Air Support training. What is the problem you are trying to solveThe USAF spends $10 Billion a year on energy. $8 Billion of that is spent on aviation fuel. What if I told you that I can decrease the cost of one hour of aviation fuel usage by 80-90%? Instead of spending between $ 32,000 - $90,000 an hour, you could significantly decrease spending to a flat rate of $2,500 an hour? Interested? If you are interested and want to hear more, great because this is what my start-up business presentation is about If not, you should be interested because this is a bourgeoning niche market in the defense sector. Fighting two simultaneous wars since 2001 comes with a price tags. $2 Trillion dollars sent and legacy fighter aircraft operating beyond their programmed service life which has lead to billion dollar upgrades in order to maintain airworthy standards and higher operating costs. With the war in Iraq over and the war in Afghanistan winding down, the military is in transition, defense spending is shrinking and the military services are actively and desperately seeking out efficient and effective long-term solutions to maintain military readiness without incurring the high cost of peacetime training. Paladin Aviation will take advantage of the opportunities opened with this transition answers the call delivering an 80-90% cost and fuel efficient solution using the chartered aircraft business model to support a military specific training requirement providing a….
We provide the aircraft, the aircrew, the sensor and communication systems at a low hourly price. The demand for close air support training has been increasing for year as well as the cost of flying USAF jets while USAF jet inventory has been decreasing but it wasn’t until military sequestration and its disastrous affects on military readiness did the need for a cost efficient close air support training solution really bring the problem to the forefront. The US military is increasingly turning to contractors like Paladin Aviation to decrease close air support training costs. We simply provide the aircraft, sensors and pilot. It is the charted aircraft business model used to support military training. - Substitute high-performance fuel-efficient propeller driven aircraft owned by Paladin Aviation for high-cost US Air Force A-10, F-15 and F-16 aircraft. Provide rapid response capability leveraging general aviation maintenance, established fuel supply points and airfield infrastructure. Deliver a solution that decrease legacy aircraft operations costs and military non-renewable fuel demand while increasing military readiness.
- What is the product/service you are sellingOur solution to solve the close air support training problem is by taking a general aviation aircraft, outfit it with a communications and electro-optic/infrared system with air to ground video transmit capability and use it to provide close air support at the low-cost rate of $2,500 an hour. Low-cost is relative. We define low-cost by comparing our cost and service with our competitors. We beat their price by $1,500.The reason we have priced our service so low is that by setting our service at this rate, we can go directly to the user of our services without complicating the purchasing process allowing us to access more customers at the lowest level with less hassle. If our competition tries to undercut our price, they lose money…a lot of money.
WHAT DIFFERENTIATES PA FROM THE COMPETITION???? RESPONSIVENESS AND EFFICIENCY4 days 6 hours 45 minutes 198 hours 23800 / 198 = 120 round trips to the moonThe demand for close air support training is increasing. USAF and US Army graduate ground controllers annually driving up the total hours the USAF must fly to maintain controller qualifications. Since the controller, the demand, and the aircraft, the supply, are geographically separate, the USAF must fly twice the required sortie hours which doubles the cost of close air support training. Now imagine if you where the Chief of Staff of the USAF and you were given the opportunity to reduce the cost of close air support training by 75% and not only maintaining military readiness but increasing it using third party contractors, would you use them? Lets look at the cost of providing close air support training. All things being equal, lets say each aircraft only has to fly the minimum required sortie hours to maintain ground controller annual currency. If you were the Chief of Staff of the USAF, which aircraft platform would you prefer? The real of cost of close air support training is actually quadruple that for the A-10, F-16, F-15, F-35 and F-22. This is the reason the military is turning to contracted close air support training. As you can see, this cost is veryIn 2008, USAF Lt. Col. Jeff Pettigrew calculated the total number of sortie hours needed to maintain the most minimum USAF ground controller readiness. His brief advocated the need for propeller driven light attack aircraft to not only to support deployed military operations but also as an efficient solution to close the ground controller training gap or as he called it, “The impending JTAC Train wreck”. In his presentation, he stated that the USAF would have to generate over 15k sortie hours annually in order to maintain the most minimum level of training. How many sorties hours actually needed? 7.5K. The reason he doubled the hours is because USAF aircraft must fly from their takeoff location, fly to the training location, and then fly back to home station once training is complete. This round trip adds one hour per REQUIRED sortie hour thus one hour of actual training incurs a one hour round trip transit time: one hour needed-two hours flown. The current market averages around $10.1 Million a year with competitors supporting USAF, USMC and US Navy training at four locations, Yuma Arizona, Hawaii, Norfolk Virginia and Germany. The competition provides three services to the military:“air to air” dissimilar training, electronic warfare testing, and contracted close air support. Contracted close air support making up less than 10% of their business with “air to air” dissimilar training making up a substantial majority of their annual revenue. ATAC and Air USA target large bundled annual contracts. We can’t beat their military connections. Their management team is made up of prior Navy Admirals, Marine Corps and USAF Generals but their strength is also their weakness. While they have target the large “bundled” contracts, we will target the smaller hourly contracts marketing directly to the supported unit leveraging the unit’s GSA Advantage buying power allowing us to service more contracts at more locations cheaper and faster. It is our assumption that the market will expand significantly within the next few years as a result of the removing of service culture barriers and “all options are the table” thinking to solving the close air support training gap as the demand for training increases while the supply of aircraft decreases and cost of flying those aircraft increase. A combination of the full retiring of the USAF’s most fuel efficient and half retirement of its second most fuel efficient aircraft in the inventory replaced with the two most expensive fighter jets, to operate, in military history will create greater market demand. The results of a Fires CoE Joint and Combined Integration Directorate breakout of this requirement--by maneuver unit in the active duty and Army National Guard--show that the US Army, alone, needs 2,334 qualified JFOs filling JFO MTOE billets. This number does not include officers, fires NCO leadership or any military transition team (MiTT) aspiration of two JFOs per team. Army JFO 2,334 x 3 hours a year x $2,500 an hour = $17.5MUSAF JTAC 1,638 x 3 hours a year x $3,500 an hour = $12.3M**If the F-35 is delayed, the cost of operating legacy aircraft increases thus increasing the cost of CAS training. If the F-35 is delivered ahead of schedule, this just accelerates the cost of CAS training.** What do you see when looking at these numbers? I see opportunity! An opportunity to fill a gap that is here now and will grow larger in the near future. It inevitable. **JP-8 $20 per gallon**F-16s burn 800 an hour**F-15s burn 1580 an hour**2,443 F-35s scheduled**Air refuelers burn 2300 an hour**6% of budget goes to actual usage