Linear Air founder, Bill Herp, had many expectations from his customers once the company starts operating jets in an air-taxi business. The company faced competition from other airline companies such as Dayjet and Pogo Jet. In order to win the competition, Herp focused on value creation for both his suppliers and customers.
Herp aimed at getting suppliers who could manufacture Very Light Jets (VLJs) because these aircrafts had better price-to-performance characteristics and high engine technology. Linear Air preferred Eclipse jet suppliers to Piston aircraft and Turboprop aircraft. Unlike Piston aircraft and Turboprop suppliers, Eclipse jet was capable of operating at lower altitudes and during inclement weather. There were also other suppliers such as Cessna and Adam Aircraft. Eclipse jet, Cessna and Adam Aircraft manufacturers won the tender to supply VLJs to the three companies. Herp had to ensure the manufacturer produced best jets for his airline company by giving better offers than his competitors (Tripas, Chow, Prewett & Yttre 1).
Herp made orders for the company aircrafts before other airlines by providing the manufacturer with detailed inside and outside designs, different from other jets. The aircrafts were manufactured to meet customers’ needs of comfort ability, and also passengers’ privacy was highly valued. Linear Air ordered 3,000 aircrafts from the three suppliers out numbering Dayjet and Pogo Jet orders. In addition, the Herp was given first priority by the manufacturers hence; his orders were worked on first before they could work on aircrafts for other companies. Herp had created value with his suppliers because he could order for special-feature aircrafts without any issues with manufacturers (Tripas, Chow, Prewett & Yttre 2).
On the other hand, Herp created value with suppliers by connecting them to other buyers. Most people preferred private jets to public aircrafts, a move that made the number of private jets sole increase from 300 to 1,000 between 1995 and 2007. Herp was the key player in the private jet sector and his relationship with manufacturers made him receive aircrafts by credit. Moreover, his company recorded a higher performance since manufacturers supplied him with high tech jets liked by most travelers (Tripas, Chow, Prewett & Yttre 2).
Linear Air gave customers first priority because they were the main target in the business. To ensure more customers used their air travel services, Linear Air made some advancement that increased value for her services. Firstly, the company introduced air-taxi services for her customers. Even with already excising companies offering similar services, Herp hoped that his services would be the most demanded. To win customer’s attraction, Linear Air ensured customers travelled to best airports of their choice without delays and extra expenses. In addition, the company’s aircrafts were fitted with the most recent technology that allowed customers to enjoy every moment of their flights as they carry out their personal businesses using the internet (Tripas, Chow, Prewett & Yttre 3).
On the other hand, Linear Air connected with aircraft buyers who wanted to own private jets. Herp had discovered the high demand for private jets, and made connections with suppliers to manufacture personalized aircrafts for individual buyers. He introduced the prepaid card program that made it easier for buyers to transact with sellers at minimal chargers. Many customers used this approach because it was cheaper and efficient. Linear Liners also created value for its customers by providing private jet hire services. The air-taxi services allowed customers to lend private jets from Linear Air for private journeys while under the care of the company. The service attracted many entrepreneurs who were tired of using road transport to travel to their destinations (Tripas, Chow, Prewett & Yttre 4).
Tripas, M., Chow, D., Prewett, A. & Yttre K. “Linear Air: Creating the Air Taxi Industry,” Harvard Business School, 2009.