The world’s largest private jet operator is updating its Marquis Jet and Elite jet card memberships in response to declining fuel prices and the COVID-19 Coronavirus pandemic
NetJets is eliminating fuel surcharges on its Marquis jet card programs and moving to inclusive pricing. At the same time, it is reducing the inclusive pricing on its Elite branded jet cards.
The move was not publicly announced but is instead being communicated directly to customers and prospects.
The duo of card products have different rules, and those policies are not changing.
Marquis cards had been priced as hourly rate, plus fuel surcharge, plus the 7.5% Federal Excise Tax (FET) as applicable, all separated out. Hourly rates will now include fuel.
The recently passed CARES Act has eliminated the collection of FET until January 2021 at the earliest. The tariff applied to domestic U.S. flights as well as to flights to and from the U.S. starting or ending within 200 miles of the Mexican and Canadian borders.
Elite cards had been priced to include fuel and FET in the hourly rates. Those prices have now been discounted taking into account both the tax waiver and lower fuel prices.
Until buying Marquis Jet Partners in 2010, NetJets had outsourced jet card sales via an exclusive arrangement with the membership seller.
Those jets cards with the Marquis label have a lead time for reservations of 10 hours and 30 peak days, although there is no surcharge.
The Elite jet card offering first appeared in 2017 on its Citation Excel/XLS fleet. It has a 24 hour lead time for non-peak day reservations and carries a 25% surcharge on 45 peak days.
In both instances, customers can get guaranteed downgrades at a published interchange rate. Upgrades are not guaranteed. However, NetJets says 30% of all clients, including jet card customers, get complimentary operational upgrades.
Last year, NetJets added the Embraer Phenom 300 and Cessna Citation Sovereign to its jet card line-up. The light jet had been priced at $189,000 for 25 hours or $7,560 per hour. Eliminating FET would drop the hourly pricing under $7,000. The top-selling light jet remains the entry-level jet card program for the fractional share operator.
NetJets also offers a Cross Country membership providing a super-midsize aircraft for flights over 3.5 hours and midsize cabin jet for shorter trips. Members can use their hours exclusively for longer trips, and the service area includes Hawaii.
The Berkshire Hathaway subsidiary also offers its Gulfstream G450s as part of its card offering, which includes fixed one-way rates for trans-Atlantic flights. Its fleet of Bombardier Global ultra-long-range private jets is not offered in jet card format.
There are no ferry fees for flights within each program’s primary service areas. Both the Elite and Marquis card programs are sold in 25 and 50-hour increments. NetJets executives have previously said about 20% of flights are for jet card customers, many who end up buying fractional shares later.