Re: Wheel Tug
Chart below is a breakdown of how they could save an airline $2550 per flight (optimistic in my opinion as most U.S airports don't have dual loading capacity).
Any chance we can get your pilot on a call with the CEO to verify these assumptions?
Summary: The WheelTug incorporates the element of an electric motor, such as the stator and the rotor, inside the hub of each of the 737's twin nose wheels. Instead of a battery, these motors draw current directly from the auxiliary power-unit, a small generator in the rear of an airliner that is used on the ground to run its electrical services. For a long taxi, they can also take power from the generators driven by the aircraft's jet engines.
Hi Jeffrey
I did a preliminary call with the CEO (Isaiah Cox).
Company looking to raise $12MM which should get them through final FAA certification and enable the first commercial aircraft installation in 2019.
The company will provide the equipment free of charge (including installation) to the airlines. Cost to the company of $200K. In return they take half of the savings generated by having the device installed.
Installation takes 8-12 hours per plane. Teams will travel around the world for installations.
See big demand from Middle East airlines (not needing to keep the engines running and therefore less damage from dust). Currently order book over 1000.
Savings determined by:
- Push back fee — agreed and known
- Pre-agree fuel savings
- Time saved on ground by turning around the plane more quickly and getting back into the air— measured as $/minute saved
Wheel Tug would keep half these savings
Deloitte study (attached) gave a wide range of $440 - $3300 savings per flight per plane
They offered a deal where you get 10% of revenue until you get a multiple of your investment. How about asking for 10% of revenue until we get 5x our investment back plus warrants at today's valuation (currently at $1.3Bln). Also would ask for liquidation priority over all existing equity holders.
Based on a Deloitte study of potential savings combined with the company's installation projections, below is a table showing the 10% of Wheel Tug's revenue that would be payable to you. For example in a Low Savings environment you would get $11MM back by 2020 and then an additional $31.5MM by 2021. Total 5x payout of $60MM would be complete in 2022.
Investor
2019
2020
2021
2022
Low Savings
$ 2,389,338.00
$ 8,685,054.00
$ 31,516,506.00
$ 166,212,200.00
High Savings
$ 17,879,400.00
$ 64,990,200.00
$ 235,837,800.00
$ 498,636,600.00
Jeffrey
Let me know how you would like to proceed.
pass. spoke to airline exex =nd he thought no insurance co ould approve
Ok
Want them to keep us updated as things progress?
Paul Barrett
Alpha Group Capital LLC
Address: 1=2 W 57th Street, 11th Floor, New York, NY 10019
Information (a) and (c) are obscured.
no