October 3, 2024
Jetvia, the new name for ATI Jet’s retail arm, is expanding its Lear 60 jet card program and launching a fractional ownership plan.
ATI Jet’s Jetvia rebrand is good news for Learjet lovers. It brings an expanded jet card program and a re-entry into the fractional ownership market, all based on the company’s fleet of 19 Lear 60s.
“The Jetvia name will represent our retail operations, fractional ownership, and jet cards, aiming to provide luxury private jet accommodations and grow into the largest midsize jet fractional and jet card provider in the U.S.,” says Lyle Byrum, CEO of ATI Jet and Jetvia.
He adds, “Jetvia will be our go-to-market brand, and ATI Jet will continue to drive our innovative approach using the Learjet along with our in-house maintenance program.”
According to Vice President of Operations Nick Tyson, around 90 jet card members currently average 33 flight hours annually.
Tyson says those jet card flyers represent about one-third of its flight hours; the goal is for jet card hours to reach 50%.
Fractional flying is projected to account for 10-15% of flight hours, with the wholesale market and ad hoc customers accounting for the remainder.
Of course, that’s all expected to grow.
Tyson and Director of National Sales DeeAnna Brodie expect the Lear 60 fleet to grow to around 30 tails in the next 18 to 24 months.
Based on Argus data, ATI moved from 24th to 20th place on our list of the 30 largest U.S. charter and fractional operators last year.
It was one of only 10 companies that saw growth in 2023 compared to 2022, posting a 9.5% increase.
Tyson says ATI has no accidents, incidents, or investigations record over its nearly 40 years.
So, what’s new?
First, preowned fractional.
ATI, founded in 1985, previously had a fractional program around the Lear 55, which was phased out when those aircraft were retired from the fleet.
The purchase price for a 1/16th share in the Lear 60 is $437,500 and includes a 50% repurchase guarantee after three years.
You can also carry over up to 25% of your annual hours.
On the jet card side, Jetvia adds $300,000 and $500,000 tiers to the previous $100,000 level.
The main difference is the more you buy, the lower your hourly rate.
The other difference is that availability is only guaranteed for up to eight monthly flight hours at the entry-level tier.
There are no limits on the higher two tiers or for fractional shareowners.
READ: Why preowned fractional ownership could be hot in 2024
The daily minimum for a midsize jet is 78 minutes, similar to the industry average of 76.1 minutes for the category.
Callout is 72 hours, both peak and non-peak.
There are 60 peak days, and while there is no surcharge on these days, departure times can be moved by +/-6 hours for operational reasons.
The current policy is to confirm peak-day departures on a first-come basis, meaning the earlier you book, the more likely you will get your specific departure time.
Brodie says that after the demand surge of 2021 and 2022, when flight providers struggled, Jetvia wanted to take a conservative approach and not promise something it couldn’t deliver.
Additionally, WiFi is now guaranteed for jet card and fractional members.
As part of the revamp, the Bahamas and Los Cabos no longer have repositioning charges.
Beyond that, the extended service area reaches Central America, Canada, Alaska, and the Caribbean.
International fees and a repositioning charge of $2,500 per hour, plus fuel surcharge, apply to a list of port of entry airports.
One of the most interesting points about the Jetvia program is the fuel surcharge.
Jetvia charges an airport-specific direct pass-through based on its contracted fuel purchasing cost.
Tyson says it can make a big difference.
Recently, the cost per gallon at Boston’s Logan Airport was $9.05 versus $5.56 at Hanscom Field, about 20 miles away.
Similarly, the fuel price at Brown Field Municipal Airport is $4.80 compared to $8.90 at San Diego International Airport.
Tyson says the idea is that clients will benefit if they can alter their plans to help the company save money.
Hourly rates for jet cards go as low as $6,395 per hour, plus fuel surcharge and FET.
For fractional buyers, Jetvia is running a July promotion.
You get a $400 per hour rate reduction.
Based on 250 hours over five years, that would bring $100,000 in savings.
Of course, the star of Jetvia’s program is the Lear 60.
Cabins feature five club seats. There is also a two-seat divan and a fully enclosed lav with a belted seat.
That means accommodating up to eight passengers.
While the Lear 60 is out of production, Tyson says there are no issues with parts.
ATI has a multi-million dollar inventory.
He adds that of the 400 Lear 60s produced, 380 are still in service.
Some of those are expected to join the fleet.
A deal for its 19th Lear 60 was just recently completed.
ATI’s full Part 145 maintenance supports the fleet mainly in-house. Tyson says plans call for increased capacity.
While the executives say there are discussions about adding large cabin jets, they look to Southwest Airlines.
The nation’s largest domestic carrier succeeded by keeping things simple.
It exclusively operates the Boeing 737.
(June 12, 2024: Editor’s Note: An earlier version of this story reported the peak days as of that post. It has now been changed to reflect the current peak days.)
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