North Carolina-based Part 135 private jet charter operator FlyExclusive is making an offer to JetSuite’s SuiteKey customers impacted by its bankruptcy.
FlyExclusive’s owner Jim Segrave, who founded Segrave Aviation before selling it to Delta Private Jets in 2010, says he had originally wanted to buy the SuiteKey credits out of bankruptcy.
However, when it became clear that it wouldn’t work, FlyExclusive came up with this new approach. He said his goal is to retain JetSuite clients after they run through their discounted flights.
FlyExclusive currently has 57 aircraft, so he says capacity isn’t an issue. JetSuite was estimated to have around 1,000 jet card members when it grounded its fleet. According to its bankruptcy filing, unused credits total $50 million.
Under the JetSuite Card Member 100% Rescue Plan, SuiteKey jet card members impacted by the company’s Chapter 11 filing can get credits in FlyExclusive’s program.
Fly Club normally requires an initial $150,000 deposit. Like JetSuite, FlyExclusive’s program includes WiFi and deicing with guaranteed availability and one-way fixed rates. In other words, no repositioning fees within the primary service area.
Normal light jet hourly rates for Fly Club are $4,650. Midsize jets run $5,450 per hour, and super-midsize aircraft are priced at $6,450 per hour.
In other words, for $150,000, a customer can fly 32.3 hours on a light jet ($150,000 divided by $4,650).
Under the plan, a SuiteKey member can get up to $50,000 in credits per contract, or each time they refill their account.
As an example, a customer who had a $100,000 balance with JetSuite would get a $50,000 credit with FlyExclusive. They would pay $100,000 to FlyExclusive, and their balance would be set at $150,000.
They would receive $150,000 in flights for $100,000. That means an effective hourly light jet rate of $3,096.
For lower balances, credits are divided over two contracts.
After the SuiteKey customer runs through their $150,000 in FlyExclusive fight credits, they would be able to top up or enter a new contract. Contracts run 24 months.
Like a number of programs, FlyExclusive does not offer an escrow account. Segrave says audited financials show the company has assets of $175 million versus debt of $100 million. It has been profitable every year, he says.
At the end of last year, FlyExclusive ranked as the eighth largest Part 135 operator, according to Argus Traqpak data. Wheels Up Group, which over the past year acquired Travel Management Company (number 9 on the Argus list), Delta Private Jets (#4), and Gama Aviation Signature (#1), ranks first. Berkshire Hathaway’s Executive Jet Management placed second, followed by Vista Global Holdings XOJET Aviation (3rd), Jet Linx Aviation (5th), Solairus Aviation (6th), and Jet Edge (7th).
