While a one-off short flight on a light jet might be had for as little as $5,000, you can also buy a new $70 million ultra-long-haul private jet. We look at the options, including full ownership, fractional shares and leases, jet cards and on-demand charter
The cost of a private jet varies widely, from owning an entire aircraft to chartering on-demand. But what are the options?
Fractional ownership and leases, as well as jet cards, have become a popular middle ground, providing convenience and consistent experience in many ways offering the best of either full ownership or on-demand charter.
However, figuring out the right solution isn’t necessarily based only on flight hours. Current U.S. tax benefits of full or fractional ownership can tilt the scale in their favor, particularly if most of your flying is for business.
The deal, which is being announced this morning, and closed Friday, adds 26 light jets to the Wheel Up fleet
Wheels Up announced this morning that it has closed a deal to acquire Elkhart, Indiana-based Travel Management Company (TMC), a significant fleet operator of owned and leased light jets serving the on-demand charter market. The deal will increase the current Wheels Up fleet to 119 owned and leased aircraft. Terms of the deal were not disclosed.
For Wheels Up founder Kenny Dichter, who helped popularize jet cards by launching Marquis Jet Partners in 2001 before selling it to NetJets in 2010, the move comes after he announced in January he had hired Goldman Sachs and Bank of America to provide advice on strategic options.
Treasury Secretary Steven Mnuchin was recently awarded $219,692 against JetCard Plus
Two companies selling jet cards look like they have turned off the lights, at least in terms of having active websites. Ascension Air, an Atlanta-based operator selling shares and jet cards, which is under fire from upset customers, has seen its website offline for more than a week. At the same time, JetCard Plus, a Miami-based broker of jet cards no longer appears to have a working website. Bloomberg reports on May 14 a Florida court ordered JetCard Plus Inc. of Miami to pay $219,692 to Steven T. Mnuchin Inc. Google indicates its office location closed and its phone number is no longer active.
Jet card broker Air Partner has been promoting luxury travel experiences via partnerships
Air Partner said it has partnered with The Modern Concierge to offer personalized 3, 4, 5 and 7-day wellness getaways for its JetCard jet card members. It follows similar partnerships with Quintessentially Travel and Camper & Nicholson covering luxury travel and yacht charters.
The owner of XOJET and VistaJet will use funds to pay debt due in 2020 and 2021
Debtwire is reporting VistaJet Malta Finance PLC and XO Management Holding Inc., units of Dubai-based Vista Global Holdings, successfully sold $550 million in senior unsecured bonds earlier this week. The news service, which covers the worldwide debt market, said Vista had to increase the coupon of the deal due to investor concerns about the cyclical nature of private aviation and UHNW spending during a downturn.