JetSuite customers lost $50 million in unused jet card flight credits. Now the company has received $6.5 million from the Treasury Department under the CARES Act
JetSuite emerged from its Chapter 11 bankruptcy reorganization in September. Now the Part 135 private jet operator, which laid off all but a handful of its employees when it suspended flights in April, has received $6.5 million in CARES Act funds.
According to the Treasury Department’s website, the payroll support program agreement was fully executed on Oct. 16. It also states, “Funds received by these air carriers and contractors must exclusively be used for the continuation of payment of employee wages, salaries, and benefits.”
Superior Air Charter, LLC, the corporate entity that owns the JetSuite brand, had said it plans to restart operations. Its reorganization plan stated it would use its existing fleet of Embraer Phenom 100s. It hinted that it planned to sell flights via brokers.
Delux Public Charter, LLC, which operates the related JSX brand, received $9.2 million in CARES Act support on May 7. JSX, which uses refurbished regional jets selling seats on scheduled flights between private aviation terminals recently said it would start service between Dallas and Houston next month.
SuiteKey members don’t have a claim against the CARES Act funds, Ted Gavin tells Private Jet Card Comparisons. Gavin served as JetSuite’s chief restructuring officer.
He said members who selected credits on JSX should be receiving notification. Jet card customers who opted to receive a cash payout should expect to be notified in Q1 of 2021. The expected payout is between 3 and 15 cents.
Alex Wilcox, the founder, who serves as CEO of both companies, didn’t respond for comment about how the CARES Act funds received by Delux will be used.