The private aviation market is ground zero for innovation in tweaking the flying experience, Forbes writes. And the proliferation of options means it’s now possible to get some version of the private jet experience for just $59, according to the publication.
Air Taxis, Subscription Models and Empty Legs
The private aviation market began changing in the late 1990s, when Warren Buffett and Berkshire Hathaway backed fractional jet ownership, Forbes writes. This opened up the market to mere millionaires and smaller firms, according to the publication. Then came the air taxi idea, using very light jets, but while some firms carved out a niche, air taxis never really picked up, Forbes writes.
On the other hand, the last decade saw a proliferation of jet cards, which allowed access to a private jet for $50,000 to $100,000 a year, according to the publication. The price dropped to $20,000 with the emergence of Surf Air, which used a monthly subscription model similar to Netflix, Forbes writes. JetSmarter then pushed the annual fee to just $5,000 by using air shuttles, according to the publication. And, finally, JetSuite offshoot JetSuitX began offering a taste of the private jet setter lifestyle starting at $59 per flight, Forbes writes.
Granted, the private aviation experience in such cases is relegated to boarding and disembarking the plane, according to the publication. The seating on these planes is more typical of a regular airline, Forbes writes. But clients don’t have to go through the main terminal, allowing them to arrive for their flights 15 minutes ahead of departure and get out of the airport upon landing even faster, according to the publication.
And while JetSuiteX’s fares have gone down to $59, more recently, August flights between Burbank and Concord, California, came in between $100 and $200, Forbes writes. Meanwhile, Tradewind Aviation, which mostly flies to vacation destinations in Massachusetts and Vermont from Boston and the New York area, can get you on a private shuttle from Westchester County, New York to Nantucket for $858, according to the publication.
Surf Air, JetSuiteX and Tradewind Aviation operation on a private shuttle model, which uses private jet terminals or hangars, Forbes writes. But the seating on such flights is “moderately better than economy class,” according to the publication. Surf Air, which flies in California, Texas and Europe, charges $1,500 to $4,000 a month for unlimited flights while JetSuiteX, which flies in the Western U.S., and Tradewind, which serves the Northeast U.S. and the Caribbean, sell individual tickets, Forbes writes.
JetSmarter, however, does use actual private jets — but its membership fee ranges from $5,000 to $50,000, with those paying on the lower end of the scale having to pay additional charge for some flights, according to the publication.
Another way to get on a private jet is on a so-called “empty leg” — an empty private jet being flown to pick up a charter passenger or after dropping one off, Forbes writes. They’re not as reliable, since the charter client can change their plans, but JetSuite peddles seats on these flights for as little as $500, according to the publication. And JetSmarter offers free seats on empty legs to some of its members paying the monthly fee, Forbes writes.
It gets more expensive from there on. For an on-demand charter, i.e., an entire jet for yourself, expect to pay at least $15,000 to $30,000 for a roundtrip of two hours, according to the publication. For fractional ownership, you’ll need a net worth of at least $25 million, Forbes writes. The share may cost from hundreds of thousands to $20 million, according to the publication.
Commentary on Forbes article by Doug Gollan
Posted by: The Wealth Advisor
