Jet Advisors Blog

XOJET: Challenger 300, Cessna Citation X, Hawker 850XP

Posted on Thu, Mar 21,2013

Bombardier Challenger 300 Private JetXOJET was founded in 2006, and their headquarters are located in Brisbane, California. The base aviation service model XOJET uses is charter; however, in addition to one-off charter booking, they offer four distinct programs. These programs are:

  • XOJET Preferred Access Program, which allows customer to gain preference over customers and control pricing based on their flight needs,

  • XOJET Coast2Coast Program, which allows customers to access customized coast-to-coast charters,

  • XOJET Elite Access Program, which provides guaranteed access to the XOJET fleet with pay-as-you-fly pricing, and

  • XOJET Membership Program, which allows the customer to pay only for charters taken.

Each program has its own unique terms and conditions. XOJET Preferred Access Program has a $200,000 upfront refundable deposit that is drawn down as you fly. The XOJET Coast2Coast Program is sold in 25-hour increments with a prepayment upfront for those hours. The XOJET Elite Access Program has a $100,000 refundable deposit, and flight hours are billed as they are incurred. The XOJET Membership Program has a nonrefundable one-time membership fee and an annual fee (annual fee is refundable in some cases). These fees are determined based on anticipated annual usage. Other terms and conditions apply, and the details can be found on their website at XOJET.com.

Hawker 850XP Private Jet

The current wholly owned or wholly leased fleet operated by XOJET consists of 16 Bombardier Challenger 300 aircraft and 29 Cessna Citation X aircraft. With Aircell GoGo BizAv technology in every Cessna Citation X and Bombardier Challenger 300, XOJET’s fleet was the first fleet (2010) to be fully equipped with in-flight Wi-Fi Internet connectivity. While a fleet of 45 aircraft is impressive by itself, XOJET has a strategic alliance with Travel Management Company, LTD (TMC) that broadens XOJET customers’ aircraft selection by providing access to 30 Hawker 800/850XP aircraft and 23 Hawker 400XP aircraft operated by TMC. The TMC Hawker 800/850XP fleet also provides GoGo BizAv Wi-Fi technology.

With one of the youngest fleets, XOJET also focuses on safety. XOJet pilots have an average of 7,800 flight hours of experience, and they go through an initial 300-hour customized training program at CAE/SimuFlight and a 150-hour training program in subsequent years. Not only are the pilots trained above FAA standards, XOJET has developed a comprehensive safety and quality management system called XOPS which encompasses flight crews, flight operations, and maintenance.

XOJET Concierge Access offers their customers exclusive access through a dedicated concierge for travel on their fleet to a variety of special events, leading hotels and resort properties, and unique destination experiences. Just a few of XOJET’s travel partners are Virgin Galactic, Art Platform LA, Jazz Aspen Snowmass Festival and The Armory Show NYC.

  

See how Challenger 300 compares to other jets!                  See how the Citation X compares to other jets!

Topics: Hawker 400XP, Hawker 800, XOJET, Citation X, Challenger 300, Hawker 850XP, Travel Management Company

Sweet Flights from JetSuite: Embraer Phenom 100 & CJ3

Posted on Wed, Mar 13,2013


Embraer Phenom 100 Private JetJetSuite, with its headquarters in Irvine, California, provides charter services on its wholly owned or leased aircraft. JetSuite is a 7-year-old company founded in 2006 by Alex Wilcox (who also founded the discount airline JetBlue) and Keith Rabin, and the company was purchased by David Neeleman and Acadian Woods Partners LLC in 2010.  Although founded in 2006, their first flight was not until 2009.

JetSuite’s initial fleet plan was to use the all-new (4 passengers) Phenom 100 aircraft manufactured by Embraer of Brazil. The Phenom 100 is one of the most advanced and efficient aircraft in its class. Due to the popularity of the JetSuite program and the need for larger and longer-range aircraft, they began adding the JetSuite Edition Cessna CJ3 aircraft (6 passengers plus a smaller sideways-facing 7th seat) in 2012. JetSuite’s current fleet consists of 15 Phenom 100s and 5 JetSuite Edition CJ3s, and all are equipped with free WiFi. The Phenom 100s are used mainly west of the Mississippi and the CJs are used mainly east of the Mississippi.

JetSuite offers a hybrid program which is called a membership program; however, you do not need to be a member to take advantage of their flight services. The membership program provides 4 pricing levels with the following deposits: $50,000, $100,000, $200,000 and $400,000. Prices per “planned” flight hour start at $3,200 for the Phenom 100 and $3,950 for the CJ3, and the price decreases as the membership level deposit increases. Those at the $400,000 membership level pay  $2,900 for the Phenom and $3,650 for the CJ3. Non-members pay higher hourly rates than members, and members receive priority rights when booking trips. Each trip scheduled for members and non-members is quoted by their customer service group and locked in even if the flight is longer than anticipated. Additional charges may be added to the flight charges for use of non-preferred FBOs, requested departure time slides, and changes to an itinerary outside of certain time frames.

Along with the membership program, JetSuite offers occasional discount flights to and from specific airports on specific dates - these special offers are called SuiteDeals. These SuiteDeals are priced per trip and can cost as little as $499.

JetSuite uses ARG/US (Aviation Research Group/United States), a world leader in aviation safety research, as their independent, third party evaluator to verify compliance of all flights to ensure passenger safety. JetSuite has received an ARG/US Platinum rating. The Platinum rating is recognized as one of the highest in relation to operational practices and flight safety standards, and it is the highest-level safety audit rating in private aviation. All JetSuite flights are flown with two pilots, and all pilots are captain rated, attend CAE Simuflight annually for simulator training, and average 8,000 flight hours of experience.

JetSuite offers their customers pet-friendly flights, ground transportation (if needed, but at additional cost), and benefits from luxury partner Singapore Airlines. 

 

See how the Phenom 100 compares to other jets!

Topics: charter, charter flights, jet lease, JetSuite, phenom 100, embraer phenom 100, citation jet 3, cj3

Around the World with Magellan Jets

Posted on Tue, Mar 05,2013

MagellanMagellan Jets is a privately held company based in Quincy, Massachusetts, and provides charter broker services. Magellan Jets is a 5-year-old company founded in 2008 by Joshua Hebert, Anthony Tivnan, and Greg Belezerian.  Tom Harrison, President of DAS (an Omincom company), serves as Chairman of the Board. In 2012, Magellan Jets acquired SkyBridge Private Air, a premier charter broker which expands their presence on the west coast. They have quickly gained market share and the respect and confidence of the charter user community as well as charter provider companies.

Magellan Jets offers jet card programs as well as On-Demand charter. Their private jet cards include a 10-hour jet card and 25-hour jet cards (11 categories to choose from), as well as their Voyager Membership Program.  On-Demand charter is self-explanatory but offers unique pricing options for one-way or round trip flights. The card programs vary from a debit card format with access to numerous aircraft types, to a specific aircraft type at preset rate and flight hours. These different programs offer air travel options that include helicopters, turbo props, light, mid, super mid and large business jet aircraft and air ambulance services along with 24/7 worldwide concierge service. The average age of the fleet network is usually 7 years old or less.

Magellan Jets uses Wyvern and ARG/US (Aviation Research Group/United States), the world leaders in aviation safety research, as their independent, third party evaluators to verify compliance of all charter flights to ensure passenger safety. Magellan Jets verifies the air charter safety information from flight history of the aircraft operator and related insurance policies. Magellan Jets has exclusive access to the records and audits of every aircraft and flight crew, and Magellan Jets demands the highest standard of safety for each flight.  This is all closely monitored by their Flight Support and Compliance, which consist of pilots.  

In addition to being meticulous in regards to the safety of all of the operators’ aircraft, crews and maintenance, Magellan Jets offers their customers air ambulance service within air medical service, pet-friendly flights, ground transportation (if needed), and benefits from luxury partners such as Four Season’s Nevis, The W Hotel S. Beach, French Lick Golf Resort, Goldeneye, and Manhattan Motorcars, to name just a few.

 

Top 5 Issues Selling a Fractional Share

Topics: jet card, charter, Magellan Jets

NetJets

Posted on Tue, Feb 19,2013

Global 5000NetJets, a wholly owned subsidiary of Berkshire Hathaway, is the oldest and largest fractional program in North America and Europe, with a joint venture in China. NetJets began in 1986, but dates back to the mid-1960s because of its ties to Executive Jet Aviation. With a North American fleet of 366 and a European fleet of 160, NetJets’s position as the largest fractional program would be hard to dispute.

 

The NetJets North American fleet is very diverse when compared to other programs, such as Cessna, Hawker, Gulfstream, Dassault, Embraer and Bombardier. The fleet includes light jets, mid-size jets, super mid-size jets, and large jets. (A more complete list of jets in the fleet is below.) 

 

The programs offered are as follows:

  • Fractional purchase, with a minimum purchase of 50 hours (6.25% share). The fractional purchase can be financed in house by NetJets.

  • Fractional lease, with same minimum as with a purchase. 

  • Jet card in 25-hour increments. The jet card is offered through Marquis Jet, a wholly owned subsidiary.

 

Each option's available aircraft types vary based on age, new entries to the fleet, and the relative demand for a specific type.

 

Fractional purchase (or finance) and fractional lease normally offer 5-year deals with predictable pricing with the option to terminate in 24, 30 or 36 months based on aircraft type. The only exceptions to the predictable pricing are a fluctuating fuel surcharge, which is based on NetJets's actual fuel costs for the applicable month, and - in the case of fractional purchase - an unknown residual value of the asset at termination. With fractional purchase, the client buys the asset at closing and then pays a monthly management fee, per-hour flight charge, and a fluctuating fuel surcharge. The fractional lease is very similar to the fractional purchase, but instead of paying the asset cost upfront, you pay a monthly lease fee.


The Marquis Jet Card offers 25-hour programs (1 year term), 50-hour programs (2 year term), and combo cards which are 25-hour cards split between two aircraft types of the buyer’s choice (1 year term). The 25- and 50-hour card terms can be extended for up to 3 years, but additional restrictions and charges apply during the second and third years. Also with the combo card, depending on aircraft selection, additional restrictions may apply on peak period days. With any of the card options, you pay a flat fee upfront and then each month you fly you pay an additional fuel surcharge based on the number of hours flown.

Cost-wise, the Marquis Jet Cards are the most expensive, followed by the lease program, with the fractional purchase/financed program pulling up as the least expensive. However, the final cost of the fractional purchase/lease program is hard to calculate upfront since a large portion of the cost is driven by market conditions and the value of the aircraft share at time of termination.

 

Jets in the NetJets Fleet

Topics: jet card, fractional, fractional ownership, NetJets

Flexjet

Posted on Wed, Jan 30,2013

Options in Jet Debit Card, Leasing, & Fractional Ownership
Bombardier Learjet

Flexjet, a wholly owned subsidiary of Bombardier, is considered the number 2 fractional aircraft program in North America. The number 2 ranking is based on fleet size (69 aircraft) and average age of the fleet. Currently, Flexjet has the overall youngest fleet but four less aircraft than the closest competitor (considered the number 3 program) based on fleet size.

The Flexjet fleet, unlike most of the other programs, consists solely of Bombardier and Learjet (a wholly owned subsidiary of Bombardier) products. They have aircraft that will fit almost any business or pleasure flyer’s needs, including the Learjet 40 and 40XR (light), Learjet 45XR (super light), Learjet 60 and 60XR (midsize), Challenger 300 (super midsize) and Challenger 604 and 605 (large). Flexjet will soon be adding the Learjet 70 (light) and Learjet 85 (midsize). These new aircraft will be the latest in design technology and performance in the Learjet stable of offerings. While some competitors have in the past criticized Flexjet for only using Bombardier products, those same competitors are now buying Bombardier products for their own fleets.

Flexjet offers three main products and variants of those products: a jet (debit) card, a lease program and the traditional ownership program. Each of these options has its own pros and cons.

The jet (debit) card is just that: a debit card with a minimum initial deposit of $100,000, which becomes non-refundable only if the cardholder does not cancel it within 14 days of their first flight; any subsequent deposit is refundable. The jet (debit) card guarantees access to the whole Flexjet fleet (except for the Challenger 604 and 605 aircraft) at preset base hourly rates plus a variable fuel adjustment and federal excise tax, and it gives you the option to fly as little or as much as you need. The jet (debit) card offers the most flexibility but the highest costs.

The lease program is less expensive than the jet (debit) card but is locked into a specific aircraft type, a set number of hours per year, a monthly lease and management fee, a preset hourly charge (plus variable fuel adjustment and federal excise tax), and access to the rest of the fleet is on an “as available” basis at a preset interchange rate. The lease (which Flexjet calls the “walk away lease”) gives the lessee the option to terminate at any time with 90 days advance notice.

The least expensive option offered by Flexjet is the traditional ownership model; however, since it is an ownership arrangement, the residual value of the asset (aircraft share) at the end of the term will impact what your true cost per hour to fly will be. The fractional ownership option carries a 5 year term with an early out option - typically after 30 months - with a termination fee. The ownership option requires purchase of the share and – except for a monthly lease fee – locks into the same conditions as the lease program, such as a specific aircraft type, a set number of hours per year, and the same “as available” access to the rest of the fleet.

 

 

Top Issues When Buying Fractional

Topics: jet card, fractional, fractional ownership, Flexjet