Martin Jetpack. Maybe an IPO in the offing

[Rocketman]

Rocketman - its not hard to confirm an intent. This news would have been more interesting if they had confirmed that they were listing mid year.

Maybe my choice of words was wrong - they said they were listing.

I also saw the segment of Dan Schlund - who calls himself "Rocketman" (now there is a coincidence) on Close up. He flies the only active bell rocketbelt in the world - maximum flight time 30 secs, fuel cost about $2000 per flight, and its so hard to fly the rocketbelt as he said "more people have walked on the moon than flown one". The Martin Jetpack is not like the rocket belt, it is better compared to small personal helicopters.

[minimoke]

Maybe my choice of words was wrong - they said they were listing.

Its probably semantics. in the paper it says "Christchurch based Martin Aircraft company plans to list on the NZX this year". It goes on to say "Chief Executive Richard Lauder said yesterday the company would list towards the middle of the year but had yet to register it prospectus." Thats the media for you. Lets wait for the prospectus!

I'm please to see you've moved from the novelty jetpack for rich adventure seekers to what it probably really is - a wee helicopter. You can now start to identify your market and with that the competition.

[Rocketman]

I'm please to see you've moved from the novelty jetpack for rich adventure seekers to what it probably really is - a wee helicopter. You can now start to identify your market and with that the competition.

So Minimoke - the question I now put to you is - would you invest in a helicopter company that can produce a personal helicopter for just 40% of the price of the world largest selling personal helicopter, which doesn't require full helicopter pilots' training to fly and is therefore markedly more accessible?

[minimoke]

So Minimoke - the question I now put to you is - would you invest in a helicopter company that can produce a personal helicopter for just 40% of the price of the world largest selling personal helicopter, which doesn't require full helicopter pilots' training to fly and is therefore markedly more accessible?

Let me know who you consider the worlds largest selling personal helicopter to be and I'l get back to you.

(if we are into buying helicopters SCF will have theirs on the block any day now)

[CJ]

(if we are into buying helicopters SCF will have theirs on the block any day now)

Talk about non essential SOE's

Rocketman - I hope they do list, it will certainly add diversity to the NZX. Add the Heartland bank which went on today, a few other small IPO's I know are in the wind and the a Power company the following year, things are looking up.

[Rocketman]

Let me know who you consider the worlds largest selling personal helicopter to be and I'l get back to you.

Robinson R22 - about 5000 sold to date - base price US$266,450, payload 180kg, 3 hours, range 450 km, pilot training (50 hours 8-10 weeks US12,000)

Martin Jetpack - Price US$100,000, paylaod 120kg, 30 minutes, range 40km, pilot training (2 days say $2000)

So you get longer range in R22, but for short range activity jetpack is $38% of capital cost. Could assume operating cost would be similarly cheaper.

[minimoke]

Robinson R22 - about 5000 sold to date - base price US$266,450, payload 180kg, 3 hours, range 450 km, pilot training (50 hours 8-10 weeks US12,000)

Martin Jetpack - Price US$100,000, paylaod 120kg, 30 minutes, range 40km, pilot training (2 days say $2000)

So you get longer range in R22, but for short range activity jetpack is $38% of capital cost. Could assume operating cost would be similarly cheaper.

Ok, so why do people buy the R22. It seems to be good because it seats two people - so a good commuter craft. It looks like it is good for cattle mustering on ranches. Police can use it for their work (with special comms loaded on board) and traffic reporting. Farmers can use it for aerial spraying. Its heated and you are seated. Doesn't look like you get wet in the rain. Its also used for helicopter training. No mention is made of it being a sport alternative to jetskis or in the adventure tourism industry.

Edit - and the R22 can have floats attached so good for marine work - can't see the jetpack doing that yet.

so lets make a comparison.
- Taking two of us for a longish distant flight - I'd go for the R22.
- For comfort (seated and warmth rather than in-your-face air con) - I'd go for the R22
- For cattle mustering (have you any idea how big some of our little stations in NZ are?) - its the R22
- For police work. I'm not sure how all the comms and search lights, batteries could be loaded onto the jetpack. I don't know how will voice comms work with the Jetpack - I'll assume its a challenge. I'll go for the R22.
- For traffic control. How long is the Auckland motorway - Might stick with the R22.
- For ag work - I cant see tanks and booms attaching well to the jetpack - its the R22 there.

OK, its more than twice the price but I reckon you get more than twice the value.

I see there are 5,000 R22 off the production line, there have been over 1,200 reported incidents and apparently 180 deaths. I'd imagine your chance of dying in a Jetpack would be higher (only because it is new and doesn't have the benefit of 20 years of production) and I think that figure would be considerably higher than jetski related incidents. I'll be looking for an indemnity insurance line in the prospectus.

[Xerof]

Wearing a Dragons Den hat - I'm out

No change to my original and only comment on this topic.
This is VC territory in my view - I'd like to know which broker is organising/leading the IPO......

[Rocketman]

Ok, so why do people buy the R22.

Because it is the lowest priced helicopter on the market.

Not everyone will pay $165K more for the features of the R22. The characteristic of most markets is that the highest volume is at the lowest price point for similar products. The Jetpack and R22 are similar - they are both small VTOL aircraft. So therefore expect demand for the jetpack to ultimately exceed the 5000 R22's sold to date.

[minimoke]

The Jetpack and R22 are similar - they are both small VTOL aircraft.

And thats where the similarity ends. The Jetpack cannot fly as far or for so long or carry as many people or keep passengers dry or do all the kinds of things the R22 does. It doesn't matter how cheap the Jetpack is, if it does nothing but go up, go some short horizontal distance and come down again then whats the point? If you try suggesting its some rich person jet ski alternative then there is little point comparing it with an R22 which has proven commercial applications - none of which I can see include leisure or adventure activities.