1 00:00:05,820 --> 00:00:08,520 Sean Aylmer: Welcome to the Fear and Greed Business Interview. I'm Sean Aylmer. 2 00:00:08,610 --> 00:00:13,530 Sean Aylmer: Something completely voyeuristic today, we're talking about private jets, in 3 00:00:13,530 --> 00:00:16,469 Sean Aylmer: particular an Aussie company that's making private jet travel a 4 00:00:16,469 --> 00:00:19,920 Sean Aylmer: whole lot more affordable and accessible. Luke Hampshire is the co- 5 00:00:19,920 --> 00:00:22,919 Sean Aylmer: founder and CEO of Airly. Luke, welcome back to Fear 6 00:00:22,920 --> 00:00:23,369 Sean Aylmer: and Greed. 7 00:00:23,730 --> 00:00:24,900 Luke Hampshire: Thank you, Sean. It's good to be back. 8 00:00:25,680 --> 00:00:28,500 Sean Aylmer: We spoke to you back in 2021, so obviously we're 9 00:00:28,500 --> 00:00:31,799 Sean Aylmer: well overdue for an update. This week marked a very 10 00:00:31,799 --> 00:00:34,019 Sean Aylmer: big milestone for the business, which we'll get to in 11 00:00:34,019 --> 00:00:36,900 Sean Aylmer: a moment. But first, just take us through how Airly works. 12 00:00:37,320 --> 00:00:40,620 Luke Hampshire: Yeah, look. So Airly, the big thing for us with 13 00:00:40,620 --> 00:00:44,220 Luke Hampshire: the business is private aviation. It is voyeuristic, it feels 14 00:00:44,220 --> 00:00:47,190 Luke Hampshire: like it's hidden behind a curtain. So the whole idea 15 00:00:47,190 --> 00:00:49,859 Luke Hampshire: of Airly is to simplify private aviation, make it a 16 00:00:49,860 --> 00:00:52,409 Luke Hampshire: little bit more accessible. We'll never be that low- cost 17 00:00:52,409 --> 00:00:56,550 Luke Hampshire: airline version of private aviation. Unfortunately, they're expensive. But it's 18 00:00:56,550 --> 00:01:00,630 Luke Hampshire: more introducing models that are working overseas or concepts that 19 00:01:00,630 --> 00:01:04,469 Luke Hampshire: are a bit different to the status quo that enable fast- 20 00:01:04,469 --> 00:01:08,370 Luke Hampshire: paced very successful businessmen and women to move around to 21 00:01:08,370 --> 00:01:11,609 Luke Hampshire: their schedule without having to deal with the commercial airlines. 22 00:01:11,609 --> 00:01:15,208 Luke Hampshire: So it's more just peeling that curtain back, showing everyone 23 00:01:15,209 --> 00:01:17,340 Luke Hampshire: what it's about. And being really transparent and upfront with 24 00:01:17,340 --> 00:01:20,069 Luke Hampshire: pricing, I think, has been a major win for us 25 00:01:20,069 --> 00:01:21,420 Luke Hampshire: since we last spoke in '21. 26 00:01:22,020 --> 00:01:24,330 Sean Aylmer: Okay, so just explain that. Hey, if I'm someone that 27 00:01:24,330 --> 00:01:27,389 Sean Aylmer: needs to go from Melbourne to Brisbane and then I 28 00:01:27,389 --> 00:01:29,819 Sean Aylmer: need to get up to the Territory or somewhere, then 29 00:01:29,819 --> 00:01:32,550 Sean Aylmer: back to Melbourne, typically, and I'd like to do that 30 00:01:32,550 --> 00:01:35,729 Sean Aylmer: in a 24- hour period or 8 hours or 72 hours, 31 00:01:35,730 --> 00:01:38,190 Sean Aylmer: I don't know. Basically, they come to you, how's the 32 00:01:38,190 --> 00:01:38,908 Sean Aylmer: process work? 33 00:01:39,240 --> 00:01:41,790 Luke Hampshire: So yeah, basically nowadays we've got this app, and it's 34 00:01:42,030 --> 00:01:45,660 Luke Hampshire: online as well, airly.com/book. And ultimately you just tell us 35 00:01:45,660 --> 00:01:48,780 Luke Hampshire: your itinerary and we get to work on making that 36 00:01:48,780 --> 00:01:51,570 Luke Hampshire: happen. And that's really the whole thing about what we're 37 00:01:51,570 --> 00:01:54,960 Luke Hampshire: about as well is it's not an Instagram flex. It's 38 00:01:54,960 --> 00:01:57,900 Luke Hampshire: not to flaunt. People don't fly private to rub it 39 00:01:57,900 --> 00:02:00,178 Luke Hampshire: in people's faces. They do it because, as you said, 40 00:02:00,179 --> 00:02:02,969 Luke Hampshire: they have a really packed itinerary and have very little 41 00:02:02,969 --> 00:02:06,869 Luke Hampshire: time to do it. So they simply, I mean, SMS, 42 00:02:06,900 --> 00:02:10,800 Luke Hampshire: WhatsApp, website, social media DMs, we've received bookings through all 43 00:02:10,800 --> 00:02:12,780 Luke Hampshire: the mediums, which is quite interesting trying to pull it 44 00:02:12,780 --> 00:02:15,840 Luke Hampshire: all together. But ultimately it's all generated through our app. 45 00:02:16,110 --> 00:02:18,599 Luke Hampshire: For six passengers or less, you get the instant pricing 46 00:02:18,630 --> 00:02:21,210 Luke Hampshire: requests, availability, we just make sure we can cover it 47 00:02:21,210 --> 00:02:22,410 Luke Hampshire: with a jet and a pilot, and that's it. 48 00:02:23,038 --> 00:02:26,100 Sean Aylmer: Okay. So let's get to the jets and pilots then. 49 00:02:26,130 --> 00:02:29,820 Sean Aylmer: Big week this week. You've acquired your first aircraft that 50 00:02:29,820 --> 00:02:30,389 Sean Aylmer: you own. 51 00:02:30,450 --> 00:02:33,450 Luke Hampshire: Yeah. So it's been a huge, really big week for 52 00:02:33,450 --> 00:02:37,440 Luke Hampshire: us, but it's the culmination of years and years, almost 53 00:02:37,440 --> 00:02:40,199 Luke Hampshire: a decade at the business. I think Airly is formally 54 00:02:40,199 --> 00:02:43,020 Luke Hampshire: nine years old, but working at it prior to formally 55 00:02:43,049 --> 00:02:46,109 Luke Hampshire: incorporating it. But it's been a massive week. We closed 56 00:02:46,110 --> 00:02:49,350 Luke Hampshire: on our first Phenom 100 aircraft, and that's the, I 57 00:02:49,350 --> 00:02:53,099 Luke Hampshire: guess, chapter one of our next phase as a business. 58 00:02:53,340 --> 00:02:56,398 Luke Hampshire: We've always been a broker sitting in the middle. We 59 00:02:56,400 --> 00:02:58,650 Luke Hampshire: launched a jet card three years ago where we had 60 00:02:58,650 --> 00:03:01,530 Luke Hampshire: a really neat leasing agreement with an operator that we're 61 00:03:01,530 --> 00:03:05,070 Luke Hampshire: very fond of. And now we progress into offering out 62 00:03:05,430 --> 00:03:08,160 Luke Hampshire: fractional ownership on aircraft now, which is a huge move 63 00:03:08,160 --> 00:03:11,730 Luke Hampshire: for us. And we've got our pilot, an incredible guy 64 00:03:11,790 --> 00:03:14,160 Luke Hampshire: over in Dallas at the moment doing his simulator training, 65 00:03:14,520 --> 00:03:17,579 Luke Hampshire: and an incredibly good support network around us doing their 66 00:03:17,579 --> 00:03:21,030 Luke Hampshire: part to make all this happen. So it's been a 67 00:03:21,030 --> 00:03:24,450 Luke Hampshire: whirlwind. The actual aircraft acquisition process has been about six 68 00:03:24,450 --> 00:03:27,599 Luke Hampshire: months. We've had deals fall through in France, Germany, the 69 00:03:27,599 --> 00:03:32,880 Luke Hampshire: US, and ironically and full circle moment, our jet was 70 00:03:32,880 --> 00:03:34,319 Luke Hampshire: sitting in Essendon, in Melbourne. 71 00:03:34,619 --> 00:03:37,350 Sean Aylmer: All right. Is it hard to buy a jet? 72 00:03:37,620 --> 00:03:40,770 Luke Hampshire: It is. This is my first transaction, and it's been 73 00:03:40,770 --> 00:03:43,350 Luke Hampshire: interesting. I have a lot of respect for those brokers 74 00:03:43,350 --> 00:03:45,479 Luke Hampshire: out there that do it. Obviously it would get easier 75 00:03:45,480 --> 00:03:47,669 Luke Hampshire: the more you do it, but there's just so much 76 00:03:47,670 --> 00:03:50,880 Luke Hampshire: to it. And especially when you're dealing with overseas, different 77 00:03:50,880 --> 00:03:54,390 Luke Hampshire: languages, different laws. A lot of lawyers have done extremely 78 00:03:54,390 --> 00:03:57,330 Luke Hampshire: well out of us the last six months. It's a 79 00:03:57,330 --> 00:04:02,250 Luke Hampshire: process. You can go inspect a Mazda 6 that costs 80 00:04:02,250 --> 00:04:05,759 Luke Hampshire: you $ 5, 000 cash and take that risk. You're talking 81 00:04:05,759 --> 00:04:09,389 Luke Hampshire: about 5 million Aussie. This is only a small jet 82 00:04:09,389 --> 00:04:12,510 Luke Hampshire: too. It's a five- seater, but it's exactly what we 83 00:04:12,510 --> 00:04:15,119 Luke Hampshire: need for what we're trying to do in our niche. 84 00:04:15,330 --> 00:04:16,860 Luke Hampshire: There's a lot that goes on, and you've got to 85 00:04:16,860 --> 00:04:19,830 Luke Hampshire: make sure that jet's in good condition. And yeah, it's 86 00:04:19,830 --> 00:04:22,498 Luke Hampshire: been an eye- opening process. It's been fun, but it 87 00:04:22,500 --> 00:04:24,509 Luke Hampshire: hasn't just been me. There's been a whole team in 88 00:04:24,509 --> 00:04:28,859 Luke Hampshire: Airlink, our operator, who's been great. We've had great assistance 89 00:04:28,859 --> 00:04:31,890 Luke Hampshire: from those that already own Phenoms, the type of jet 90 00:04:31,890 --> 00:04:34,169 Luke Hampshire: that we've bought, and obviously a lot of faith and 91 00:04:34,170 --> 00:04:34,920 Luke Hampshire: trust put in us. 92 00:04:35,850 --> 00:04:39,630 Sean Aylmer: So, fractional ownership, is it kind of akin to buying 93 00:04:39,630 --> 00:04:43,110 Sean Aylmer: a fraction of a boat that you have sitting on 94 00:04:43,110 --> 00:04:46,678 Sean Aylmer: the harbor and you get X amount of weekends a 95 00:04:46,680 --> 00:04:47,310 Sean Aylmer: year type thing? 96 00:04:47,400 --> 00:04:51,300 Luke Hampshire: Yeah, exactly right. So everything that we've done, the jet 97 00:04:51,300 --> 00:04:54,330 Luke Hampshire: card especially, and now into fractional ownership, that has all 98 00:04:54,330 --> 00:04:57,450 Luke Hampshire: come from the feedback of our existing customer group. So 99 00:04:57,510 --> 00:05:00,269 Luke Hampshire: they sit back and go, " Geez, I'm starting to fly 100 00:05:00,270 --> 00:05:02,820 Luke Hampshire: a bit. Maybe I should look at ownership." And some 101 00:05:02,820 --> 00:05:05,609 Luke Hampshire: have gone and done it, against my advice, and have 102 00:05:06,570 --> 00:05:09,839 Luke Hampshire: either purchased a lemon or just didn't use the aircraft 103 00:05:09,839 --> 00:05:12,539 Luke Hampshire: for what it is. So they keep coming back and going, " 104 00:05:12,540 --> 00:05:13,710 Luke Hampshire: Wouldn't it be cool to do this as a bit 105 00:05:13,710 --> 00:05:15,808 Luke Hampshire: of a group where you share the load with three 106 00:05:15,809 --> 00:05:19,320 Luke Hampshire: other owners, and you still get the depreciation benefits, the 107 00:05:19,320 --> 00:05:22,289 Luke Hampshire: tax benefits, and the profit share." You've got Airly running 108 00:05:22,289 --> 00:05:24,900 Luke Hampshire: it, that runs a very high- volume operation, and all 109 00:05:24,900 --> 00:05:26,940 Luke Hampshire: of a sudden we're putting your asset into that volume 110 00:05:27,000 --> 00:05:29,430 Luke Hampshire: when you're not using it. So yeah, you buy a 111 00:05:29,430 --> 00:05:31,680 Luke Hampshire: quarter share of a jet, you take up a quarter 112 00:05:31,680 --> 00:05:34,020 Luke Hampshire: of all the fixed expenses, you've got your own dedicated 113 00:05:34,020 --> 00:05:37,589 Luke Hampshire: pilot, and yeah, you're just paying for at- cost when 114 00:05:37,589 --> 00:05:39,960 Luke Hampshire: you're flying it. And when you're not using it, so 115 00:05:39,960 --> 00:05:41,700 Luke Hampshire: you get 60 calendar days a year to use it, 116 00:05:41,940 --> 00:05:44,039 Luke Hampshire: which I've been told by owners is too much, but 117 00:05:44,190 --> 00:05:46,349 Luke Hampshire: I'm happy with that. But when you're not using it, 118 00:05:46,529 --> 00:05:49,500 Luke Hampshire: we will well and truly use it. And obviously 70% of 119 00:05:49,500 --> 00:05:51,240 Luke Hampshire: that profit gets swung back to you. 120 00:05:51,900 --> 00:05:53,579 Sean Aylmer: Stay with me, Luke, we'll be back in a minute. 121 00:06:00,900 --> 00:06:04,409 Sean Aylmer: I'm speaking to Luke Hampshire, Co- founder and CEO of Airly. 122 00:06:06,359 --> 00:06:09,960 Sean Aylmer: Okay. So Airly, how many flights are you doing? I'm 123 00:06:09,960 --> 00:06:12,270 Sean Aylmer: trying to get my head around, you obviously leased planes 124 00:06:12,270 --> 00:06:14,820 Sean Aylmer: primarily, now you have your own plane. How many flights 125 00:06:14,820 --> 00:06:16,680 Sean Aylmer: are you doing a month, for example? 126 00:06:17,969 --> 00:06:20,130 Luke Hampshire: And that's the really interesting thing, hey. There's months where 127 00:06:20,130 --> 00:06:21,900 Luke Hampshire: we think it's going to be quiet and we break 128 00:06:21,900 --> 00:06:24,870 Luke Hampshire: records, and there's months we think we're going to break records and 129 00:06:25,020 --> 00:06:28,110 Luke Hampshire: we get really quiet. So if you look at an 130 00:06:28,110 --> 00:06:33,599 Luke Hampshire: hour's base, we're always hovering between 70 and 120 hours per month 131 00:06:33,599 --> 00:06:34,319 Luke Hampshire: that we're flying. 132 00:06:34,889 --> 00:06:38,190 Sean Aylmer: Okay. And the people using it are mostly business people? 133 00:06:38,550 --> 00:06:42,029 Luke Hampshire: Yeah. So I don't know how it's happened, but we 134 00:06:42,029 --> 00:06:45,059 Luke Hampshire: have really fallen into this incredible niche of self- made 135 00:06:45,059 --> 00:06:51,870 Luke Hampshire: business owners, men and women. As I said, these smaller 136 00:06:51,870 --> 00:06:55,140 Luke Hampshire: jets, they're not what you see on Instagram. They're lovely 137 00:06:55,140 --> 00:06:58,349 Luke Hampshire: planes, they're obviously very expensive, but they have a greater 138 00:06:58,680 --> 00:07:03,270 Luke Hampshire: calling, I guess, of getting these individuals from Brisbane to 139 00:07:03,270 --> 00:07:06,690 Luke Hampshire: Rockhampton across to Emerald, being able to hit up all 140 00:07:06,690 --> 00:07:09,839 Luke Hampshire: these locations. And for a lot of these customers, they 141 00:07:09,839 --> 00:07:12,629 Luke Hampshire: haven't done it before, or they've always thought about it, 142 00:07:12,629 --> 00:07:16,290 Luke Hampshire: but gone, " No, it's too expensive." And now that we 143 00:07:16,290 --> 00:07:18,240 Luke Hampshire: have this platform that shows you what the price is, 144 00:07:18,900 --> 00:07:19,980 Luke Hampshire: they look at it and go, " Hang on a second. 145 00:07:19,980 --> 00:07:21,900 Luke Hampshire: I can do this in one day and be back 146 00:07:21,900 --> 00:07:22,740 Luke Hampshire: home in time for dinner." 147 00:07:23,160 --> 00:07:25,109 Sean Aylmer: And you can get in and out of airports? I 148 00:07:25,110 --> 00:07:29,009 Sean Aylmer: mean, I'd imagine Emerald's very different to Brisbane, for example. 149 00:07:29,340 --> 00:07:32,520 Luke Hampshire: Yeah, 100%. I think it's around 120 airports on the 150 00:07:32,520 --> 00:07:34,290 Luke Hampshire: East Coast that open up when you look at a 151 00:07:34,290 --> 00:07:38,010 Luke Hampshire: jet outside of what the airline service. So, I mean, 152 00:07:38,010 --> 00:07:40,170 Luke Hampshire: you could be living Bayside, and being able to fly 153 00:07:40,170 --> 00:07:43,500 Luke Hampshire: out of Moorabbin to Sydney, you avoid the peak drive 154 00:07:43,500 --> 00:07:46,830 Luke Hampshire: to Tulla, and you're probably, out of Brighton, probably 15 155 00:07:46,830 --> 00:07:50,880 Luke Hampshire: minutes from Moorabbin Airport, 20 minutes from Moorabbin Airport. There's no nonsense. 156 00:07:51,510 --> 00:07:54,000 Luke Hampshire: When you arrive, you are literally 20 to 30 meters 157 00:07:54,000 --> 00:07:55,650 Luke Hampshire: from the jet. You walk into the jet, the door 158 00:07:55,650 --> 00:07:57,180 Luke Hampshire: closes, you're wheels up in five minutes. 159 00:07:57,660 --> 00:07:57,990 Sean Aylmer: Wow. 160 00:07:58,320 --> 00:08:00,870 Luke Hampshire: To a lot of us, that doesn't matter. Right? Me 161 00:08:00,870 --> 00:08:04,379 Luke Hampshire: too, I'll cram into a commercial flight and it just 162 00:08:04,650 --> 00:08:07,259 Luke Hampshire: is what it is. You succumb to their schedules. For 163 00:08:07,260 --> 00:08:10,170 Luke Hampshire: these individuals, they are able to say, " I know I'm 164 00:08:10,170 --> 00:08:12,870 Luke Hampshire: going to land in Sydney at 8: 30." It's done. 165 00:08:13,350 --> 00:08:15,210 Luke Hampshire: If they need to go to the Blue Mountains, they 166 00:08:15,210 --> 00:08:16,950 Luke Hampshire: can go to Bankstown instead, which is a little bit 167 00:08:16,950 --> 00:08:19,830 Luke Hampshire: closer. If they're heading to Wollongong, they can fly into 168 00:08:19,830 --> 00:08:23,579 Luke Hampshire: Wollongong. Basically, all those schedules and routes get thrown out 169 00:08:23,580 --> 00:08:25,170 Luke Hampshire: the window. You just tell us where you need to 170 00:08:25,170 --> 00:08:29,070 Luke Hampshire: go and where you are. That's our bread and butter. 171 00:08:29,070 --> 00:08:29,880 Luke Hampshire: That's what we do. 172 00:08:30,360 --> 00:08:33,000 Sean Aylmer: And I notice on your website, I can bring my 173 00:08:33,000 --> 00:08:34,439 Sean Aylmer: pet with me rather than put it in the cargo hold. 174 00:08:34,440 --> 00:08:38,070 Luke Hampshire: Absolutely. We have always had an open pet policy. So 175 00:08:38,070 --> 00:08:40,260 Luke Hampshire: look, with the larger jets, it always comes down to 176 00:08:40,260 --> 00:08:43,319 Luke Hampshire: the owner. But on the light jets that we frequently 177 00:08:43,320 --> 00:08:48,270 Luke Hampshire: use, absolutely. But I'd say it's probably 10- 15% of 178 00:08:48,270 --> 00:08:51,059 Luke Hampshire: our over- consumer base are because we allow pets in 179 00:08:51,059 --> 00:08:51,420 Luke Hampshire: the cabin. 180 00:08:52,230 --> 00:08:54,990 Sean Aylmer: So what next for Airly? I remember a couple of years 181 00:08:54,990 --> 00:08:57,599 Sean Aylmer: ago, I think it was, when we spoke, you had 182 00:08:57,599 --> 00:09:03,088 Sean Aylmer: bought EmptyJets, a competitor. So I presume that's been subsumed 183 00:09:03,090 --> 00:09:05,309 Sean Aylmer: well and truly into Airly. You've got your own plane 184 00:09:05,309 --> 00:09:06,600 Sean Aylmer: now. What next? 185 00:09:06,840 --> 00:09:09,900 Luke Hampshire: Oh look, the next five years, I mean, we're extremely 186 00:09:09,900 --> 00:09:13,860 Luke Hampshire: ambitious. We're growing a great team and there's a lot 187 00:09:13,860 --> 00:09:17,458 Luke Hampshire: of belief in what we're doing. So ultimately we think 188 00:09:17,458 --> 00:09:20,189 Luke Hampshire: there's a presence of Airly in New Zealand. We think 189 00:09:20,190 --> 00:09:23,250 Luke Hampshire: there's a presence in Southeast Asia as well. And I 190 00:09:23,250 --> 00:09:27,480 Luke Hampshire: really do believe that this fractional ownership opportunity will continue 191 00:09:27,480 --> 00:09:29,759 Luke Hampshire: to scale, not only on the East Coast but into 192 00:09:29,759 --> 00:09:34,049 Luke Hampshire: slightly larger aircraft, so your sub- eight seats, and start 193 00:09:34,049 --> 00:09:37,050 Luke Hampshire: to touch regions in Southeast Asia as well. So, we're 194 00:09:37,050 --> 00:09:41,370 Luke Hampshire: extremely ambitious. We're never satisfied with where we're at. This 195 00:09:41,370 --> 00:09:43,439 Luke Hampshire: week's been a great week, but it's like, " Okay, that's 196 00:09:43,440 --> 00:09:45,929 Luke Hampshire: one aircraft. How do we get the next one? Where's 197 00:09:45,929 --> 00:09:48,509 Luke Hampshire: the next one? Where's the next one?" So it's just 198 00:09:48,509 --> 00:09:50,969 Luke Hampshire: that continual frenetic pace. And I mean, there's been a 199 00:09:50,969 --> 00:09:53,819 Luke Hampshire: lot of patience about it. I wanted this probably four 200 00:09:53,820 --> 00:09:55,830 Luke Hampshire: years ago, but I don't think Airly was ready for 201 00:09:55,830 --> 00:09:58,620 Luke Hampshire: it. But now, that's where I see us. I really 202 00:09:58,620 --> 00:10:01,350 Luke Hampshire: think we can make a really substantial impact in the 203 00:10:01,350 --> 00:10:04,650 Luke Hampshire: APAC and Southeast Asian region with the kind of products 204 00:10:04,650 --> 00:10:07,769 Luke Hampshire: that we do offer, which is always niched around the 205 00:10:07,770 --> 00:10:09,360 Luke Hampshire: more cost- effective light aircraft. 206 00:10:10,080 --> 00:10:11,880 Sean Aylmer: Luke, thank you for talking to Fear and Greed. 207 00:10:12,208 --> 00:10:13,199 Luke Hampshire: No worries. Thanks for having me. 208 00:10:13,710 --> 00:10:17,040 Sean Aylmer: That was Luke Hampshire, Co- founder and CEO of Airly. 209 00:10:17,070 --> 00:10:19,140 Sean Aylmer: This is the Fear and Greed Business Interview. Join us 210 00:10:19,140 --> 00:10:21,540 Sean Aylmer: every morning for the full episode of Fear and Greed, 211 00:10:21,690 --> 00:10:24,180 Sean Aylmer: daily business news for people who make their own decisions. 212 00:10:24,540 --> 00:10:26,249 Sean Aylmer: I'm Shaun Aylmer. Enjoy your day.