In a filing last week, the grounded private jet charter operator outlined what its jet card customers might receive in exchange for their $50 million in unused flight credits
What’s nearly $50 million in unused flight credits worth when your jet card provider goes bust?
The answer looks to be less than customers had hoped for, but more than past bankruptcies and closures.
The Chapter 7 Trustee for Zetta Jet alleges the glitzy private jet charter operator was in a constant state of financial distress from the start
The Trustee is seeking to claw back over $450 million from more than a dozen entities
If it sounds too good to be true, it might be too good to be true. While failed Zetta Jet marketed a champagne and caviar image, it apparently was charging Red Lobster prices and moved from financial crisis to crisis from its inception, despite portraying itself as being well-capitalized.
Its website at the time said the private jet charter operator offered “pure indulgence,” combining “Asian inspired service, European chic, and American can do.” It promised, “At Zetta Jet, no desire is too extravagant and no request too difficult.”
Lawsuits, closures, bankruptcies and lack of transparency show the challenges consumers face
In the two years since I launched Private Jet Card Comparisons, I’ve been surprised by the number of bankruptcies, closures, lawsuits, and lack of transparency in private aviation. In Europe, Wijet liquidated its UK subsidiary while Surf Air closed its entire operation there. Zetta Jet filed for Chapter 11 and then Chapter 7, leaving bills estimated at between $50 million and $100 million. ImagineAir just closed shop without notice. Both JetSmarter and Ascension Air find themselves facing unhappy customers, including lawsuits. Of course, there have been other failures before, including Avantair and Blackjet to name just two fairly recent ones.
How not to lose on your private jet membership
To help you avoid the same pitfalls, here are some tips I put together. While they may not be foolproof, I think they are helpful to keep in mind:
An FBI affidavit alleges millions of dollars in funds from
charter brokers and consumers were funneled to bank accounts used by Geoffrey
Cassidy to support a lavish lifestyle of yachts, expensive Swiss watches and
luxury real estate
As part of efforts here in the United States by the Court’s Trustee to impound a yacht in Australia connected to former Zetta Jet managing director Geoffrey Cassidy, Private Jet Card Comparisons was provided a 46-page sworn affidavit by an FBI special agent. The authenticity of the document, which was marked as “sealed” could not be confirmed, however, the case was recently covered in the local media Down Under.
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.