JetSmarter can walk away from the proposed Class Action arbitration settlement if more than 10% of members opt out
Last week, in reviewing the 13-page “Notice of Settlement” as the basis for my analysis of JetSmarter’s proposed Class Action settlement, I was struck that there was a seeming lack of detail.
It wasn’t clear which flights you could apply the valuable 50% off Resolution Credits. Not finding anyone willing to answer my questions, I made note of it in my article.
JetSmarter Class Action Settlement Agreement
After I published the story, I was happy to see in my inbox a more detailed 45-page “Settlement Agreement.” There is some good news.
The jet sharing broker remains the subject of individual lawsuits, however, up to 12,000 members may be eligible for cash and credits under a proposed Class Arbitration settlement
We take an in-depth look at the value of the proposed settlement
Anyone who was a member of JetSmarter from September 5, 2014 until June 19, 2018 should be receiving a Notice of Settlement (Arbitration Matter No. 01-18-0003-3338) as part of a Class Action filed via arbitration last September. It’s estimated as many as 12,000 former and current members of the private jet plane sharing membership program could be eligible.
The proposed settlement offers members of the Class a net distribution of $2,975,000 plus potentially tens of millions of dollars in free membership extensions and flight credits.
The action was filed by Solowsky & Allen, P.L., a Miami law firm, which also apparently negotiated the settlement with JetSmarter. Requests for comment were not returned from either Solowsky & Allen or a second law firm listed on the settlement notice.
After moving its shared flight program from free seats to paid and scheduled flights to a crowdsourcing model, JetSmarter apparently wants to focus on being a charter broker
12.4.2018 – Editor’s Note: After publishing this article, Sergey Petrossov, CEO of JetSmarter, reached out to me to say he didn’t think the article provided a fair view of the company’s on-demand charter program. Normally, I would contact a company with questions before publishing, but after being told three times over the past two-and-a-half months JetSmarter wasn’t going to answer my questions, I didn’t bother. The article was also designed to highlight four places I saw shortcomings in their offerings. However, I have happily integrated Petrossov’s responses to my points in red and as always welcome any critiques people have on what I publish.”
Despite mounting lawsuits, JetSmarter is now more aggressively marketing full aircraft charters, apparently trying to compete with a host of online and offline brokers. While the sharing economy private jet provider has always sold full aircraft charters, it recently began displaying options for full aircraft charters when searching for flights, which are now apparently nearly all built on a crowdsourcing model as opposed to its previous model of having scheduled private jet flights to book by the seat.
PrivatAir’s insolvency marks another ‘good times’ private aviation blackeye and reminds buyers they need to research the stability of providers
Yes, it’s another ‘good times’ private aviation hiccup in what has been described as the peak of the segment’s 10-year recovery. “Any Jet, Anywhere, Any time” reads the on-demand private jet charter page of the Swiss and German private jet management company PrivatAir which said it has filed for insolvency today.