November 21, 2024
Turboprops and large cabin jets are part of FlyUSA’s first fixed-rate, guaranteed availability jet card program.
The thinking behind FlyUSA’s jump into the fixed-rate, guaranteed availability jet card segment is simply a response to what customers want.
Founder and CEO Barry Shevlin (pictured left) says, “Three years ago, if you had asked me, ‘Are you going to do a fixed-rate, guaranteed-availability jet card?’, I would have said ‘no.'”
Shevlin says that despite growing sales to around $60 million this year and 150 members in its dynamic pricing membership product, the 2020 start-up is now answering customers’ calls.
“It’s something customers told us wanted, and we are responding to the market,” he tells Private Jet Card Comparisons.
Tampa Bay-based FlyUSA was ranked the top private jet company and 45th overall on this year’s Inc. 5000 list.
It was powered by a 6,215% growth from 2020 through 2023.
The Business Observer describes Shevlin as a “prominent area entrepreneur…who helped build Clearwater-based Vology into a $175 million IT services business. ”
Chief Revenue Officer Duncan Jones says the program will be a hybrid, using aircraft managed by FlyUSA and third-party operators.
After starting as a broker, FlyUSA bought 3B Aviation in June 2023.
It manages around 24 aircraft, with seven on a charter certificate and an eighth in compliance.
About 30% of charter flights are for in-house clients, with the rest via wholesale.
Jones says the new jet card program will probably be about 20/80, mostly off-fleet.
The Freedom Jet Card is a well-thought-out product that is not for everyone but fits the needs of specific flyers that other card programs overlook.
But first, the basics.
There are four dollar-denominated levels: $100,000, $250,000, $500,000, and $1,000,000.
There are no membership fees.
Unlike many programs, in addition to light, midsize, and super-midsize jets, Freedom offers fixed rates on turboprops and large cabin jets.
The turboprops have a 60-minute daily minimum, plus taxi time, a good fit for short-leg flyers since their light jet minimums are 78 minutes, plus taxi time.
All other categories are 120 minutes, plus taxi time.
At the top end, a fixed-rate large cabin program is a nice perk for flyers who usually might take a light jet but need to accommodate nine or ten passengers—beyond a super mid—for conferences or family vacations a few times a year.
The $100,000 entry point (the program is non-refundable) also makes it attractive for flyers who want to supplement existing solutions with large cabin jets or turboprops.
Turboprop rates start at $5,495 per hour, including FET.
Light jets at $100,000 are $7,995 per hour on the same basis.
At the top, large cabin jets are $13,995 per hour with tax.
However, large cabin jets do not automatically come with a cabin attendant.
Per our exclusive QUICK COMPARE FLIGHT PRICING, a two-hour turboprop flight costs $12,089, while a light jet costs $17,589.
A large cabin jet at 120 minutes plus taxi time would run $30,789.
Guaranteed availability is based on 72 hours of non-peak notice and 120 hours on peak days.
Forty-six peak days carry a 15% surcharge.
You get complimentary WiFi on midsize jets and up.
You can use your funds at published rates for whichever category you want.
FlyUSA guarantees recovery at no additional cost, although deicing is extra, as is catering.
Outside the Continental U.S. – mainly the Caribbean – there is a 25% surcharge, and flights are non-cancellable after booking.
Jones said the company is finalizing specific destinations where fixed rates will apply.
Rate locks and expiration of funds increase with deposit amounts.
There are no roundtrip or long-flight discounts.
However, executives said they would listen to feedback and tweak the program.
One interesting point in the contract was undefined extra fees for arriving or departing at rural airports.
It’s defined “as airports that are not within 200 nautical miles of a city with a population of 250,000 or more.”
There is no set list or map, the executives said, but the idea is to protect FlyUSA from too much inefficient flying where the repositioning costs exceed what you are paying for occupied hours.
It also highlights the risk of fixed-rate guaranteed jet card programs.
While much of the focus is on the risk to customers who become unsecured creditors in a failure (unless their funds are in an escrow account), providers who sell fixed-rate cards with guaranteed availability lose money on some flights, mainly flying to and from airports where the repositioning legs make them a loser.
When I asked Shevlin and Jones, a Jet It alum, about the clause, they said it is a nice way of saying their fixed rate program may not fit if that’s where you’re flying.
They would be happy to have you in their dynamic pricing program.
Full details are available for paid subscribers in our comparisons spreadsheet.
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