April 8, 2024
Fast-growing FlyExclusive is making its first new aircraft order and expanding from charter and jet cards into fractional ownership.
Kinston, North Carolina-based FlyExclusive has entered into a purchase agreement with Textron Aviation for up to 30 new Citation CJ3+ light jets. The fifth-largest operator in North America will also enter the fractional ownership market.
The operator said it expects to take delivery of five aircraft in 2023, with the option to purchase additional aircraft for deliveries through 2025. It marks the first time the company has bought new private jets directly from an OEM.
FlyExclusive currently operates 11 CJ3s and 10 more Citation Encore light jets. It has 85 jets in total. Since February it has added five Excel/XLS midsize jets, a pair of CJ3, and a large cabin Gulfstream GIV-SP.
In a surprise move, it is also expanding into fractional ownership.
“This expansion launches FlyExclusive into the fractional space. We are committed to redefining the private flying experience, providing the full suite of products for our customers, all delivering consistent, reliable, and world-class service,” said FlyExclusive Chairman and Founder Jim Segrave.
He added, “We are proud to continue our relationship with Textron Aviation as we bring the CJ3+ into our esteemed fleet. The addition of these new CJ3+ aircraft will allow us to expand our capabilities to support our continuing growth as one of the largest private jet charter operators in the industry.”
“This order brings the efficiency and comfort of the Citation CJ3+ to a new audience of customers through flyExclusive’s programs,” said Ron Draper, President and CEO of Textron Aviation.
FlyExclusive was founded by Segrave in 2014 after he sold Segrave Aviation to Delta Air Lines in 2010. It grew mainly serving the wholesale market until May 2020 when it launched its first jet card program. At the time it had 60 aircraft in its fleet.
Last October, it revamped the program, which it markets as Jet Club. It expanded its fixed-hourly rates to the deep Caribbean, Central America, and Northern South America. It also introduced a new pricing structure that makes it attractive for same-day roundtrips and trips that make multiple stops in a single day.
FlyExclusive had been growing its fleet via an alternative ownership model. The program targets both aircraft buyers and owners. It involved triple net leases. Aircraft owners receive a monthly net lease payment of up to 10% of aircraft value. FlyExclusive covers fixed, variable, and maintenance costs. Partners, as they are called, then get guaranteed access and fixed rates in the operator’s fleet. It’s similar to jet card members but with a longer callout.
A spokesperson for FlyExclusive said additional details on the fractional ownership program will be announced in the near future.
A recent survey of Private Jet Card Comparisons subscribers showed that 28% of frequent private flyers are considering fractional ownership.
New CJ3+s list are priced around $10 million, according to Avbuyer.
