XOJET has posted on its website some details of its updated Preferred Access and Elite Access programs with the biggest changes around its Elite Access program which continues to require a $200,000 deposit. Private Jet Card Comparisons had previously reported the San Francisco-area based operator and broker was set to launch significant revisions to its programs.
It is also bringing out a $50,000 Select Access program, more on that in a bit. The big news is that XOJET is adding a Mid-Size and Light Jet offering to its existing Super-Mid program which was built around its 41 owned Challenger 300 and Citation X fleet. There has been no formal announcement yet, and we will update this story as we get more details from the company.
According to its website, rates for the Super-Mid stays at $8,500 per hour, while Mid-Size will be $6,750 per hour and Light Jets are pegged at $5,500 per hour. The rates include the 7.5% Federal Excise Tax (FET), according to how we are reading it. The two new programs are not national. The “network” for Light Jets is east of the Mississippi and for Mid-Size jets, it’s east of the Rocky Mountains. We’ve asked XOJET if there are plans to make the two new programs national, and also the specific surcharges when traveling outside the “network” areas. Clients can continue to withdraw funds at any time.
Seemingly not so good changes include a one-time $3,000 initiation fee, plus a monthly fee. If you want access to one class of jet, you pay $1,000 per month, for two classes of access it’s $1,500 per month and to access all three classes (Super-Mid, Mid, and Light) it’s $2,000 per month, so annually $12,000 to $24,000 in fees which are deducted from your $200,000 deposit.
Another new charge is 12 minutes per segment for taxi time. This is pretty standard, however, in the current Elite program, there was no charge. This equates to an extra $1,700, $1,350 or $1,000 per flight. We’re checking with XOJET to see if there are any additional fees or surcharges. In the current program, de-icing was extra. The website states, “Peak Day, Late Night and Out-of-Network Restrictions Apply,” A small but negative change is the catering allowance has been reduced from $400 to $250 per flight.
In terms of minimums, Super-Mid stays at 1.5 hours, whereas Mid-Size will be 1.3 hours and Light Jets at 1 hour. Reservations lead time goes from 12 to 24 hours, but peak day reservations lead time drops from 120 hours to 48 hours, a very nice plus if you are planning to do a lot of flying around peak periods and a move which clearly pits Elite Access against fractional ownership. XOJET also continues to have only 20 Peak Days whereas other jet card programs have up to 58 Peak Days.
We have questions to XOJET as to whether the new programs will have guaranteed Wi-Fi (its owned fleet of Super-Mid jets is 100% WiFi equipped) and any changes to its cancellation windows, pets policy, service recovery guarantee and the minimum age for unaccompanied minors which is currently age 13.
The existing Preferred Program stays at $100,000 but now has a $3,000 initiation fee and $500 monthly fee drawn from your deposit. Select Access, an apparently new program, starts with a $50,000 deposit and has a $250 recurring monthly fee, but no initiation fee. The previous Preferred Program did not have guaranteed rates, and each trip was quoted individually with “dynamic pricing” and it appears this continues for both Preferred and now Select. There are 4% and 2% “rewards” respectively for flying on XOJET’s owned fleet. Peak Days for both programs appear to be the same as Elite Access.
Overall, this gives XOJET more to offer in terms of jet card programs, starting at $50,000, and its flagship Elite Access program now has Mid-Size and Light Jets. At the same time, you’ll now have to add taxi time, initiation fees, and monthly fees into your spreadsheets and will be losing in the low thousands of dollars per year in catering credits if you figure 10 flights with $150 less per flight in credit means a $1,500 differential.
In terms of what makes up the Elite Access fleet for the various size categories, assuming the XOJET fleet guide on its website is accurate Super Mid-Size continues with its own aircraft, including the speedy Citation X which can hit 700 mph. Mid-Size shows as Lear 60 and Hawker 800XP. Light Jets would be the Hawker 400XP (7 passengers), Citation XLS (8 passengers) and Lear 45 (6 passengers). The XOJET fleet is IS-BAO Stage 3, Argus Platinum and Wyvern Wingman. XOJET CEO Brad Stewart said in a recent interview with Corporate Jet Investor he would like to see the company re-enter the management side of the business. With sister company TMC Jets, which according to its website currently has 70 WiFi outfitted Hawker 400XPs and Hawker 800/850XPs the group is already a formidable player. On the broker side, unlike some companies that promote access to the entire 7,000 strong Part 135 fleet, XOJET limits its use of third party aircraft to just over 1,000 that have met its in-house standards.