Magellan Jets expects to reach the $200 million sales mark this year as it prepares for more growth via M&A.
Backed by strong revenue growth and jet card sales, Magellan Jets plans to acquire other brokers, has launched a program for independent charter brokers, shifted two top executives, and revamped its jet cards.
After a 26% increase in revenues last year and a 31% gain in jet card sales, President Anthony Tivnan tells Private Jet Card Comparisons the company he cofounded in 2008 with Joshua Marc Hebert and Gregory Belezerian is on the way to $200 million in revenues this year.
In terms of executive movements, Matthew Harris (pictured right), who most recently served as chief operating officer, has been named chief strategy & growth officer.
Josh Lesnick, who was the chief commercial officer, is now COO.
Tivnan says the changes at the top back the company’s growth plan.
Harris will lead Magellan Jets’ acquisition strategy.
The former NetJets and Mileston Aviation Group executive will oversee the company’s new program for independent broker advisors.
Tivnan says Harris has extensive M&A experience.
That included acquisitions of Fly Louie’s charter and sourcing division and Stellar Technologies.
Tivnan says the company is targeting brokerages that are a cultural and service fit, have a strong reputation, and generate at least $25 million in sales.
Certified Advisor by Magellan Jets is designed to attract independent brokers.
Hebert, who serves as CEO, says, “We are building a platform that gives premier brokerages and elite independent advisors the institutional infrastructure to scale, without ever asking them to surrender the founder-driven culture that made them great.”
Tivnan says Magellan Jets currently has 30 in-house brokers.
However, as the company interviewed candidates for staff sales positions, it found a wide swath of brokers who had built successful books of business but had hit a ceiling, spending more time on administration and sourcing than on selling.
At the same time, they didn’t wish to be a full-time employee of a company.
Tivnan says Certified Advisor enables those brokers to tap into sourcing, administration, billing, marketing, and support so they can focus on selling.
Certified advisors will go through a new Magellan Jets University training program.
They will be able to sell the full range of Magellan Jets products.
Tivnan says the concept is similar to many Virtuoso luxury travel agencies, which act as hosts for independent travel advisors.
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Magellan Jets is revamping its existing jet card product by layering a series of benefits for buyers.
Tivnan says jet cards currently account for 70% of revenues.
Long flight discounts now range from 10% at the entry-level 25 hours up to 20% from 100 hours.
Customers who buy at least 50 hours will now receive a 7% discount on flights between select Northeast U.S. airports and airports in Florida, Texas, and the Southeast.
They also receive short-leg waivers: four at 50 hours, six at 75 hours, and eight at 100 hours.
Rate locks range from 12 to 24 months, based on hours purchased.
Most notably, flyers no longer have to buy a fixed number of hours.
Clients can buy hours as needed, starting at 25 hours.
For example, if you expect to fly 35 hours, you can buy 35 hours of flight time.
Lesnick says, “Private aviation has long sold the same product to every client,” continuing, “We took a different approach by asking a simple question: how do our Clients actually fly?”
Lesnick days, “The introduction of Advantage Routes offers preferred pricing on the trips our clients fly most, made possible by the asset-light model that lets us price around demand instead of fleet logistics.”
He added, “Short-leg waivers are another new benefit.”
Lesnick says a jet card client flying from Boston to Nantucket can save up to $10,000 on a single trip through the program’s short-leg waiver benefit.
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