In addition to over $50 million in jet card deposits, grounded private jet charter operator JetSuite received over $57 million from affiliates since 2016
Flight delays caused by President Trump, stolen silverware, broken coffee makers and ‘race to the bottom’ pricing’ increased the losses
Is a JetSuite 2.0 in the works?
Court documents from the bankruptcy proceedings of Superior Air Charter, LLC, better known as JetSuite, show a company that was burning through cash since at least 2016.
During that time both JetBlue Airways and Qatar Airways made investments into the parent company JetSuiteX, Inc. Additionally, JetSuite used $50 million in unredeemed deposits from jet card customers towards operations, something its contracts permitted. The company, like other key players in the market, did not offer an escrow account.
Delta Private Jets and Wheels Up will have over 190 private aircraft
The deal is expected to close in early 2020, subject to closing conditions and required governmental and regulatory approvals
Delta will take an equity stake in Wheels Up becoming its largest shareholder
Financial terms of the transaction are not being disclosed
The transaction sets up a three-horse race with Directional Aviation and Vista Global as they battle market leader NetJets
Wheels Up’s busy 2019 included raising more money, acquiring light jet operator TMC Jets, tech platform Avianis, expanding its jet sharing membership, plus launching fixed-rate programs for light and super-midsize jets
Last week it announced a major revamp of its own jet membership programs
Is Wheels Up now poised for international expansion?
Wheels Up and Delta Air Lines this morning are announcing they have reached a definitive agreement to combine their private jet businesses.
“This groundbreaking partnership will democratize private aviation – making the convenience of private jet travel accessible to more consumers,” said Delta CEO Ed Bastian.
Surf Air’s growth in Europe has been tepid so far, however, it and others continue to pursue a by the seat private aviation model against a backdrop of mixed results
Seat sharing, where travelers buy single seats on private aircraft, either via memberships or on individual flights, is considered a growth area for business aviation getting plenty of play in consumer media. The major benefit is saving time at airports by using private aviation facilities while paying prices at or near what the commercial airlines charge. For short hops, it can cut total travel time significantly. However, the model may be in trouble once again. Two sources tell Private Jet Card Comparisons that upstart Surf Air Europe has recently pared back its marketing and sales team there.