XOJET says it completed a busy and successful first half of 2018 as it positions itself as a better option to fractional ownership
San Francisco-based XOJET said it saw 12% growth in total revenue during the first half of the year, including a record-breaking first quarter with year-over-year increases of 15% in overall business and 39.5% in Off-Fleet Charter Brokerage. The company says for the super-mid charter market in the United States it enjoys a 31% share of flights exceeding three hours occurring on the XOJET fleet. It has its own fleet of over 40 Bombardier Challenger 300s and Cessna Citation Xs.
XOJET’s off-fleet business continues at “an unprecedented pace in 2018” with a 22% increase in revenue and a 12% increase in hours in the first half of the year, the company said in a press release received by Private Jet Card Comparisons. Off-fleet charter made up 34% of overall revenues during the same time period, putting XOJET “well on its way toward its goal” of having the charter brokerage account for 50% of revenues by 2020.
The company said its success is in part a result of increasing its Preferred Partner Network of aircraft by 40% to over 1,400 aircraft in light- to large-cabin sizes, which expanded the company’s ability to deploy a larger variety of jets and flights to service more client missions. XOJET says it is now focused on increasing its share of corporate clients as “more firms sell-off owned aircraft and seek alternative solutions for efficient travel.”
Brad Stewart, chairman and CEO said in a statement, “Our growth momentum and strong showing in the first half of 2018 are indicative of a growing appetite for on-demand private aviation and our ability to cater to a spectrum of client needs.” He continued, “Fractional flight activity continues to decline, more clients are recognizing the economic benefits of on-demand and we are seeing an increasing trend of corporations outsourcing their private aviation needs.”
The company’s on-fleet revenue saw a 6% year-over-year increase, based on higher fleet efficiency, utilization and pricing. The company has also started a fleet expansion program and recently took delivery of two Citation X aircraft, further strengthening XOJET’s position as North America’s largest on-demand operator of super mid-sized private aircraft.
Underscoring the rising trend of membership subscriptions, its version of jet cards, XOJET’s three-tiered Access Solutions program reached its sales targets with nearly 1,000 members in its inaugural year. XOJET recently unveiled enhancements to Elite Access. Members of this highest membership tier are guaranteed fixed hourly rates and access on light and mid-cabin aircraft classes in addition to XOJET’s super-midsize product. The midsize and light jet programs have fixed rates east of the Rockies and Mississippi respectively, and there currently isn’t a large jet program, something the company has previously attributed to a lack of high-quality heavy aircraft it deems would work in a fixed price program. It does off large jets via standard on-demand charter.
In the first half of 2018, XOJET added seven luxury brands to its portfolio of lifestyle partners. Members now enjoy benefits with Sea Island, Monticello Motor Club, Peter Millar, Heliflite, Shipsticks/Shipskis, Private Medical and Hertz. These brands join XOJET’s partners, including Mandarin Oriental, Pebble Beach Resorts, The Private Suite, Yellowstone Club, Gavin de Becker & Associates and Pinehurst, among others.
“We continue to curate an unparalleled partnership portfolio that enhances our members’ travel experience beyond the jet,” said James Henderson, XOJET’s president of commercial operations. “These service-oriented, like-minded global brand leaders provide our clients with preferential access and exclusive value-added benefits.”
To recruit and retain pilots, XOJET heightened its investment in recruitment, increased pilot compensation, added new training programs, implemented flexible scheduling and expanded pilot leadership opportunities. Veteran pilot Susanne Kelly was promoted to assistant chief pilot, adding to the company’s roster of female talent. Women currently making up 30% of director level and above positions at the company, which it says is among the highest in the industry.
The company also has its sights on international expansion by growing its network of operating partners in Europe to service intra-European flights. XOJET already services inter-European travel with access to over 200 large-cabin transatlantic jets like the Bombardier Global 5000, Dassault Falcon 900, and Gulfstream G550, that fly between the U.S. and Europe.