December 4, 2024
Jet card broker OneFlight International is the latest membership program to cite global turmoil in changing its program.
Effective July 8, the minimum billed flight time per flight segment for very light, light, and midsize jets will be two hours. They had been one hour. Turboprops will remain 60 minutes, including taxi time.
OneFlight offers fixed hourly rates for over 70 aircraft types program members can request, although only the category is guaranteed.
Additionally, the company said an Economic Adjustment Fee “for inflation may also be added to all flights.”
In an unsigned email to clients, OneFlight wrote, “The unprecedented current state of the economy has led to the highest level of inflation in over 40 years and driven the cost of flying private jets to heights beyond anyone’s imagination.”
It cites fuel costs, pilot shortages, and supply chain issues.
The letter said, “The U.S is facing its worst pilot shortage in recent history; the problem has spread past commercial and regional airlines into the private sector, forcing an increase of 60%-80% in pilot salaries. The supply chain problem has led to extended downtime for aircraft maintenance events due to parts on backorder.”
OneFlight said demand from new flyers is also taxing supply.
The company noted, “While OneFlight has always maintained the integrity of service and guaranteed aircraft availability for its members, we must make a couple temporary adjustments to keep up with costs.”
OneFlight CEO Ferren Rajput tells Private Jet Card Comparisons the Economic Adjustment Fee is expected to be around 10%.
It will fluctuate up or down based on inflation. In some cases, Rajput says his cost for light and midsize flights was double the revenue. Increasing the minimums will mitigate losses on short flights.
The changes come just weeks after launching a promotion to attract new members.
Rajput says his goal is to be a pricing leader and hopes members will have patience. “It’s temporary, and I want it to be as short as possible,” he says.
He points out the company hasn’t increased hourly rates since January.
OneFlight doesn’t have a fuel surcharge for domestic flights. Rajput adds, “If we did a fuel surcharge, it would have been much more.”
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