What’s next for Volato customers?

Volato customers now have to figure out how to move forward. Here are some thoughts on next steps.

By Doug Gollan, September 15, 2024

According to published documents, Volato has 184 fractional and 265 jet card customers. So, what’s next for those flyers?

When JetSuite and Jet It both ceased operations, and NetJets stopped taking new jet card customers and even renewing existing clients during the Covid surge, those flyers found new solutions.

So, chances are Volato customers won’t exit private aviation.

As part of Volato’s agreement for FlyExclusive to take over operating its fleet, Volato customers were also given several options to move over.

Jet card customers who use its refundable Insider program can request a refund.

However, they take the risk that Volato will not be able to refund the used credits.

Volato has 10 days to acknowledge receipt of the refund request and 30 days to provide the refund.

So, it will be around six weeks until you can begin checking your mailbox or bank account.

Volato options

The FlyExclusive offers for Volato jet card customers could see some clients coming out ahead or at least not losing.

But like every rose, it has its thorns.

FlyExclusive’s financials have been open-book since its SPAC IPO in December.

It’s losing money.

In its Q2 analysts call, executives cited the reasons, outlined their steps to reach profitability, and said they believe they have a plan and are now trying to execute it.

READ: Beneath H1 Losses, FlyExclusive Says It Turned The Corner

So, the question becomes, are you putting in good money after bad?

As the legendary philosopher Mike Tyson once said, “Everyone has a plan until you get punched in the mouth.”

Of course, if you take Door 3, you would be right to ask the same question about privately held companies.

One subscriber told me the other day about the salesperson from a privately held company seeking his business who said, “We’re solid. We’re having our best year ever financially.”

He asked what I thought.

My answer is I have no idea about the company’s finances.

I guess that the salesperson who told him that has never seen the books of his privately held company either.

So, what should you do?

The first question, I believe, is whether FlyExclusive is even right for you.

Do its programs, rules, and pricing fit your needs?

What other providers have relevant options that fit your needs?

How do they compare?

FlyExclusive, since launching its jet card, has been a value provider seeking to gain share.

Since they already had a large fleet but were focused on wholesale and wanted to build their direct retail customer base, they have been playing for market share.

FlyExclusive ended the first six months of 2024 as the fifth-largest charter/fractional operator.

Volato was 17th.

For many flight profiles, FlyExclusive is significantly less expensive than what you would pay with other large providers.

Wheels Up and VistaJet/XO

As to the good money chasing bad, that’s a legitimate question.

It’s hard to answer because a dollar that is no longer in your bank account is a dollar you don’t have.

We can look back at Wheels Up and Vista Global’s XO and VistaJet.

Wheels Up and XO are value providers.

For specific missions and flight profiles, VistaJet is often one of only a few guaranteed rate solutions and sometimes the only one.

More than a year ago, there was plenty of press coverage of both.

The commentary is they were both in danger of flying too close to the sun.

Both are still flying.

READ: House of Jet Cards: Evaluating the risks and rewards of a multi-billion-dollar private jet charter product

For specific regions, routes, and flight profiles, like FlyExclusive, a 30-hour flyer with either would have easily saved over $100,000 over other well-known programs by sticking with them.

Likewise, VistaJet’s Program and VJ25 can save you hundreds of thousands of dollars in cancelation fees you would face buying long-haul international flights on an ad hoc basis.

One broker recently told me about a client who had to spend an extra $300,000 on a complicated international charter when his plans changed.

For that client, VistaJet would have been a much better choice.

Of course, the issue is that you can’t skip ahead to the end of this movie.

Looking back, you could argue that customers who left Wheels Up or XO’s programs for pricier alternatives are now significantly out of pocket compared to those who stayed with them.

The point is that whatever decision you make, like investing or running your business, has risks.

If you are a Volato customer, particularly with a fractional share, you should probably consult an experienced aviation attorney.

You can also see where you stand via outstanding Volato jet card funds with our Jet Card Haircut Calculator.

My advice is to start by figuring out which options fit your needs.

Compare those options, compare how they fit your needs, compare the costs, evaluate the risks, and then make an educated decision based on having as much information as possible.