For the individuals who prioritize convenience, cost-effectiveness, and personalized travel experiences, a private flight may just be the ideal option to get you to your next business meeting or luxury vacation.

Let’s compare these two private flight options and explore which one may satisfy your unique travel needs.

Understanding Private Jet Charter

Chartering a private jet is the process of renting an aircraft for private use.

This option provides travelers with the flexibility to choose their aircraft, travel dates/times, as well as their preferred airports to fly in and out of. Companies such as Trilogy Aviation, Flexjet, and NetJets, offer private jet charter services, providing a tailored and convenient travel solution to their travelers.

Advantages of Private Jet Charter

Private jet charters offer a myriad of benefits, making them an attractive option for those seeking flexibility and convenience in their travel plans.

• Flexibility and on-demand service: Private jet charter offers flexibility and on-demand service, providing travelers with the ability to depart and arrive at their convenience. On-demand service ensures that passengers can avoid lengthy layovers and drawn-out check-in processes, making the overall travel experience smoother and more time-efficient.
• Variety of aircraft options: When it comes to private jet charters, passengers have the luxury of choosing from a diverse range of aircraft, each tailored to meet specific needs and preferences. This flexibility allows travelers to select jets based on factors such as passenger capacity, flight range, and onboard amenities, ensuring comfort and efficiency for each trip.
• No up-front costs or ongoing expenses. Private jet charters apply the pay-as-you-go, trip-by-trip model, which can be exceptionally cost-effective for infrequent flyers. This option offers the luxury and convenience of private aviation without the heavy financial burdens associated with ownership or long-term commitments.

Disadvantages of Private Jet Charter

While private jet charters offer numerous advantages, there are several disadvantages to consider as well:

• Potential for higher costs per flight: Unlike fractional ownership, where costs are distributed among several owners, chartering a private jet often means bearing the full financial burden for each trip. This can make private jet charters particularly expensive during peak travel times when demand is high, and prices surge.
• Less control over flight schedules: Although private jet charters offer significant flexibility in terms of departure times and airport choices, availability is contingent upon the charter company’s current fleet and schedule. This means that during peak travel periods or last-minute bookings, desired aircraft may not always be available, leading to potential delays or the need to compromise on the type of aircraft.
• Availability issues during peak travel times: As demand for private jets surges during popular holidays, major sporting events, or high-profile conventions, securing a charter can become challenging. This increased demand can lead to higher prices and limited options, forcing travelers to either adjust their schedules or opt for less ideal aircraft.

Exploring Fractional Ownership

Fractional ownership, like a timeshare, refers to the practice of purchasing a share in an aircraft, giving individuals partial ownership and access to the plane for a specified number of hours or days per year.

This shared ownership model distributes the expenses of owning a private jet, such as maintenance, insurance, and crew salaries, among multiple owners, making it a more cost-effective option for frequent flyers who need regular access to private air travel.

Advantages of Fractional Ownership

A fractional share offers several compelling advantages:

• Lower cost per flight compared to full ownership: By sharing the costs of the aircraft, maintenance, insurance, and crew salaries among multiple owners, the financial burden of owning an aircraft is significantly reduced. This makes it a more accessible option for those who frequently fly but find full ownership economically unfeasible.
• Access to a specific aircraft type: Unlike private jet charters where the available aircraft can vary, fractional ownership allows individuals to choose a specific type of plane they want to have access to, ensuring familiarity and tailored comfort for their journeys. This feature is particularly beneficial for those who have exacting standards or specific needs, such as requiring a certain cabin configuration or onboard amenities that align with their personal or business preferences.
• Control over flight schedules: Fractional ownership of a private jet offers exceptional control over flight schedules, allowing owners to plan their trips with a high degree of certainty and flexibility. Since a fractionally owned aircraft is essentially at the beck and call of its owners, there’s a significantly reduced risk of encountering delays and cancellations.

Disadvantages of Fractional Ownership

While fractional programs offer numerous advantages, there are several drawbacks to consider as well:

• Significant upfront investment: The price of a new jet can range from millions to tens of millions of dollars, depending on the make, model, and customizations. Moreover, the cost doesn’t stop at the purchase, as buyers also need to consider taxes, registration fees, and insurance, which can add a significant amount to the overall expenditure. This significant upfront investment can make ownership prohibitive.
• Ongoing expenses: While fractional jet ownership can be a cost-effective alternative to full ownership, it comes with ongoing expenses that can add up quickly. These costs include not only regular maintenance and operations fees but also management fees, which are essential for ensuring the smooth operation of the aircraft. Owners must also account for unpredictable costs such as those associated with unscheduled maintenance or repairs, which can also significantly impact the overall budget.
• Limited flexibility compared to chartering: Fractional ownership typically requires the owners to adhere to a set schedule and may involve more stringent rules and regulations governing the use of the aircraft. Additionally, availability can be a concern, as the partially owned jet may be in use by other shareholders when it is needed, potentially necessitating reservations and reducing spontaneity.

Comparing Private Jet Charter to Fractional Jet Ownership

The choice between private jet charter and fractional jet ownership ultimately hinges on a traveler’s flight frequency, budget, and desired level of control over the aircraft. Let’s look at which option may better suit your needs:

Side-by-Side Comparison

Factors Influencing the Best Choice

When deciding between private jet charter and fractional jet ownership options, several key factors come into play that can significantly influence the best choice for an individual or business:

• Annual flight hours: For individuals or businesses who only require occasional flights, typically under 50 hours per year, a private jet charter is often the most economical and flexible choice. On the other hand, for those who anticipate flying more frequently, usually between 50 to 200 hours annually, fractional ownership can offer more significant cost savings and guaranteed access to an aircraft.
• Desired level of control: Private jet charter provides ultimate flexibility, allowing users to select the aircraft type and schedule flights based on their specific needs without being tied to long-term commitments or enduring ownership responsibilities. In contrast, fractional ownership offers a higher degree of control over the use and operation of the aircraft, as owners have a vested interest in the jet.
• Budgetary constraints: For individuals or businesses with a limited travel budget, private jet charters offer a more cost-effective solution, as there are no substantial upfront costs or long-term financial commitments. On the other hand, fractional ownership involves a hefty initial investment to purchase a share of the jet, alongside continuous management responsibilities (i.e., meeting FAA requirements) and ongoing monthly costs (i.e., maintenance, insurance, storage).
• Travel patterns: For individuals whose travel needs are sporadic, with flights spread out over longer intervals, a private jet charter may be the better option due to its flexibility and lack of long-term commitment. In contrast, for those who frequently fly to the same destinations on a regular schedule, fractional ownership offers guaranteed availability of an aircraft tailored to the individuals’ specific needs and preferences.

Making the Right Choice for Your Private Jet Travels

In an increasingly globalized world where time is of the essence, having access to private air travel can be a game-changer for both individuals and businesses.

Comparing private jet charter and fractional jet ownership is crucial because each option offers distinct advantages that cater to different travel needs and financial situations.

While private jet charters offer unparalleled flexibility and short-term solutions, fractional ownership provides guaranteed availability and potential cost savings for frequent, long-haul flyers. Optimize your private jet experience by choosing the travel solution that best aligns with your personal or business objectives.

FAQ

Is it better to own a private jet or charter?

The decision to own vs. charter a private jet comes down to several factors, such as annual flight hours, desired level of control, budgetary constraints, travel patterns, etc. It is up to each individual or business to evaluate these factors and make the most economical decision for their needs.

Is fractional ownership of a plane worth it?

Fractional ownership of a plane can be a worthwhile investment for those who frequently travel by private jet but do not want the full responsibility and cost of owning an aircraft. By purchasing a share of an aircraft, fractional owners gain access to the plane for a certain number of hours or trips per year, spreading out the cost among multiple owners.

What is the difference between a private jet card and fractional ownership?

Private jet card programs are pre-paid memberships that provide access to a fleet of aircraft at a predetermined rate, typically measured in hours of flight time. Fractional ownership programs involve purchasing a share of an aircraft, which can range from 1/16th to 1/2 of the plane, granting co-ownership along with a proportional share of the aircraft’s operating costs and depreciation.

What is the difference between fractional ownership and charter?

Fractional ownership involves purchasing a share of an aircraft, which grants the owner a certain number of flight hours per year, while also sharing the costs of maintenance, crew, and other operational expenses with other co-owners. Chartering a plane involves renting an entire aircraft for a specific trip, offering flexibility without the long-term financial commitment required by fractional ownership.

The post Private Jet Charter vs. Fractional Jet Ownership appeared first on FLYING Magazine.

A Form 10-Q—a quarterly financial report submitted to the Securities and Exchange Commission— filed by Volato on August 14 showed the company spiraling into the red, recording a net loss of $34.3 million for the six months ending June 30. The same form stated Volato has a negative working capital of $18.2 million and an accumulated deficit of $98 million as of June 30. Net cash used in operating activities for the six months was $7.4 million.

“These above matters raise substantial doubt about the company’s ability to continue as a going concern,” the form stated. “During the next [12] months, the company intends to fund its operations through a combination of issuing debt and equity as well as the sale of aircraft at a premium to cost.”

Additionally, the form stated that management believes that its current cash position will allow Volato to continue as a going concern and to fund its operations for at least one year from the date the financials were made available.

The filing also stated that on June 18 Volato received a notice from the New York Stock Exchange (NYSE) advising the company that it is not in compliance with NYSE American continued listing standards, requiring it to have stockholders’ equity of at least $2 million if it has reported losses from continuing operations and/or net losses in two of its three most recent fiscal years.

Section 1003(a)(ii) of the Company Guide also requires a company to have stockholders’ equity of at least $4 million if it has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years.

Volato stated in the form that the company has submitted a plan to the NYSE American LLC on July 18, outlining actions the company will take to regain compliance by December 18, 2025.

“The notice does not affect [Volato’s] ongoing business operations or its reporting requirements with the United States Securities and Exchange Commission,” the form stated.

‘Rightsizing’

In a company letter from Volato CEO Matt Liotta obtained by FLYING, Liotta explained the decision to “rightsize” the company’s fleet and crew by removing five leased planes and furloughing some of its pilots.

“This is not a decision we take lightly, and it is the first time we have taken such a step,” Liotta stated in the letter. “However, I want to emphasize that this decision is based on our need to align with both the timing of new HondaJet deliveries, in which we have full confidence, and the pace of demand growth.”

In that statement, Liotta referenced Volato’s 2023 purchase of 25 HondaJets from Honda Aircraft company. These jets were slated to be delivered by 2025, but Liotta said delayed deliveries of the new aircraft and lower than expected sales have put financial pressure on Volato.

He also said demand for Volato’s services, while up, aren’t as high as anticipated.

“This situation requires us to make some difficult but necessary adjustments,” Liotta said.

He went on to say that Volato had been working closely with Honda to increase the availability and utilization of Volato’s fleet.

“…We’ve made substantial progress that allows us to fly individual planes more efficiently, meaning we can meet our flight hour needs with fewer planes,” Liotta said. “This not only strengthens our financial position but also benefits our fractional customers by delivering more revenue share to them—a true win-win.”

After attempts to renegotiate Volato’s more expensive plane leases, Liotta said that the company was unable to reach acceptable terms and decided to end those leases. By flying more hours per plane, he said the company aims to enhance its profitability and attract more interest in its fractional ownership program.

“This decision is about managing our business wisely and positioning Volato for long-term success,” Liotta said. “By rightsizing our fleet and crew now, we’re setting ourselves up to navigate these challenges effectively and prepare for future growth. Thank you for your continued dedication and resilience. We will get through this together and come out stronger on the other side.”

Volato lost over $17 million last quarter and currently has $5.8 million in cash. Volato did not immediately respond to FLYING’s request for comment.

Jet It Déjà Vu

Readers may recall FLYING parent company Firecrown owner and CEO Craig Fuller’s article last summer detailing the demise of Jet It, another fractional ownership charter jet operator. 

“Jet It generated revenue through several major sources— fractional-owner hourly fees; monthly maintenance fees; up-front selling of aircraft fractional positions; and off-network charter flights,” Fuller, who was also a Jet It fractional owner, wrote in the article analyzing its business model.

The flaws in this model emerged when Jet It—-contractually obligated to guarantee fractional owners aircraft availability within 72 hours advance notice—was required to go into the charter market and purchase aircraft time at the charter market’s clearing rate. Fuller stated that these rates were often five times the rate that the fractional owner was paying Jet It for the same service.

Additionally, a key driver of Jet It’s cash flow was in selling fractional aircraft positions—especially during the start of the pandemic.

“In the early days of COVID, as interest around personal aviation exploded, so did cash flow opportunities for Jet It,”  Fuller wrote. “In fact, it is likely that the company relied too heavily on this source of cash to fund its operations.”

Fuller wrote that in 2021, and 2022 supply chain issues started to impact Honda Aircraft Company, and Jet It could not source as many airplanes to sell to members. This caused cash flow from new fractional sales to dry up, severely impacting Jet It’s business model.

Jet It closed down on May 24, 2023.

The post Volato to Drop 5 Leased Jets, Furlough Pilots appeared first on FLYING Magazine.

Over the weekend, Mahomes-endorsed Airshare closed a deal to acquire rival Wheels Up’s private aircraft management business. The move more than quadruples Airshare’s own managed fleet—comprising Cessna Citations, Bombardier Globals, Embraer Legacies and Praetors, and other models—with the addition of 90 airframes.

The transaction leaves Wheels Up with around 215 aircraft, including 75 Beechcraft King Airs, 61 light jets, and 52 super midsize jets capable of making transcontinental flights. According to Private Jet Card Comparisons, Wheels Up prior to the deal was the fourth-largest fractional and charter provider in the U.S. based on flight hours. Airshare ranked 11th.

In addition to the aircraft, the Overland Park, Kansas-based company will inherit 300 personnel from Wheels Up’s private management business. John Owen, CEO of Airshare, told FLYING the move will double or even triple the company’s headcount.

Billing itself as a private aviation services provider, Airshare offers third-party aircraft management in addition to fractional ownership, jet card, and charter services. Already, it manages King Air, Citation Excel, and Citation X models that make up the bulk of Wheels Up’s fleet, many of which were included in the transaction. The company also manages light and large-cabin jets such as the Embraer Phenom 300 and Bombardier Global 5000.

Owen sat down with FLYING to discuss more details of the deal.

Expanding Options

Airshare began exploring aircraft management in 2008 with the launch of its Executive Flight Services offering, which along with the firm’s fractional business was later rebranded under the Airshare umbrella. According to Owen, a deal such as the one with Wheels Up was a long time coming.

“We had been looking at acquisitions in the aircraft management space for really the last few years but hadn’t come across anything that made sense to go all the way through with,” Owen told FLYING. “We were approached by a representative with Wheels Up earlier this year and asked if we had any interest in pursuing their particular aircraft management business. So that’s how it all started.”

Owen said Airshare considered a few smaller deals but landed on Wheels Up because it “instantly gives us a coast-to-coast footprint for aircraft management.” Coast-to-coast coverage has been on the firm’s radar for a while now, and the acquisition will support its plans to offer fractional and jet card services nationally. It added those services to the Florida market in May and will soon set its sights on the Northeast.

Of course, the quadrupling of its managed fleet will be of major benefit to Airshare. On the fractional side, it operates a total of 22 Embraer Phenoms and Bombardier Challengers. But the managed business covers aircraft from Phenoms and Challengers to Citations, Gulfstreams, Legacies, and Globals, several of which will be added through the transaction. The company will even get its hands on a few new models.

“With the acquisition of this particular aircraft management business, there’s a lot of [the above aircraft].” Owen said. “There’ll also be some Dassaults and some other planes. So it’s a lot of what we’ve dealt with in the past, but there’s also some new types in there as well.”

Owen is particularly excited about the addition of Wheels Up support teams, which he views as a crucial piece of the puzzle. Not only will it more than double the company’s aircraft management staff, but it will allow Wheels Up customers to work with the same representatives they’re used to—as if the deal never happened.

“We are not just absorbing the aircraft… We are taking the aircraft, the aircraft management teams, the maintenance teams, and the various accounting and administrative staff teams all along with it,” said Owen. “So, those owners that were under the Wheels Up umbrella will see zero changes day one after the acquisition, because they’ll be working with the exact same teams they have been the entire time.”

The Airshare CEO emphasized that the new managed aircraft will complement—rather than supplement—its fractional services. The two businesses are stand-alone, he said, since customers who bought into the fractional program did so with Phenoms and Challengers in mind, not the models covered by the management service.

Rarely—on 2 to 3 percent of trips, by Owen’s estimate—Airshare will “off-fleet” flights using primarily managed aircraft, providing a slight bonus to customers. But the real benefit, he said, is the potential for coastal expansion and the addition of support teams to assist both new and legacy clients.

The deal does not necessarily mean Airshare will place greater emphasis on aircraft management. Rather, the intent is to expand options for customers, many of whom jump back and forth between the firm’s services. For example, Owen estimated about half of Airshare’s managed aircraft are owned by previous fractional customers.

“I think the core of our business is private aviation services,” he said. “It isn’t fractional, it isn’t managed, it isn’t charter, and it isn’t jet cards. It’s really…having a wide swath of private aviation services that fit your particular needs at a particular time.”

Looking ahead, Airshare is confident in the demand for its managed services. The company keeps an eye on pricing and utilization data and regularly consults with customers to assess the strengths and weaknesses of the private aviation sector. Owen pointed to a healthy lead time of two years for new aircraft as an indicator of a well-oiled supply chain.

The Airshare boss also hinted that the company could one day add electric vertical takeoff and landing (eVTOL) and other emerging aircraft types to its fleet. That won’t happen in the near future, but the novel designs are on the firm’s radar.

“It’s definitely something that’s intriguing that we’re watching very closely,” Owen said. “We’re just kind of trying to figure out who’s going to survive that space. What exactly is going to come out of that space? But I think it makes a lot of sense, and I think a lot of people can use it.”

Arrow Pointing Down for Wheels Up?

The deal for Wheels Up’s private management business was initially revealed in August, when it announced it was seeking emergency funding in the form of a bridge investment from Delta Air Lines.

Later that month, Delta, Knighthead Capital Management, and Certares Management—which owns luxury travel agency Internova Travel Group—invested $500 million in the company to keep it afloat. But the bailout came at the expense of a 95 percent stake in the firm, placing its ownership largely in Delta’s hands.

Coincidentally, Delta once owned Wheels Up’s management business in full. It sold its Private Jets unit to its new subsidiary in 2020, retaining ownership of one-fifth of the business.

Wheels Up last year became the largest Part 135 operator in the U.S., with more than 1,500 owned, leased, managed, and partner aircraft in service. But since going public in July 2021, the company has lost money each quarter and contended with cost cutting, layoffs, and reports of cash flow woes.

Those rumors reached a fever pitch in May, precipitating the resignation of founder and CEO Kenny Dichter. Former chief financial officer Todd Smith took his place as interim CEO before the firm announced George Mattson, a Delta board member, as the permanent successor.

Mattson will reportedly shelve Wheels Up’s vision of an Airbnb-type marketplace to focus on existing services. In June, the company transitioned to a slimmed-down, more populated, capped rate primary service area, part of an emphasis on cost cutting and streamlined operations. Moving forward, it will also integrate its sales and marketing activities more tightly with Delta.

According to Doug Gollan, editor-in-chief of Private Jet Card Comparisons, Wheels Up remains one of a handful of providers offering cut prices for continental flights that are $10,000 to $25,000 cheaper than the competition. The company’s King Airs also continue to be viewed as a cost-effective option for short flights.

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The post Airshare Quadruples Fleet in Deal for Wheels Up Private Management Business appeared first on FLYING Magazine.

Avantto said it plans to establish new operations in the Brazilian states of Mato Grosso, Bahai, and Goiás, and chose the E1000 GX because of its ability to reach remote destinations and operate from short runways which, the company said, are “a reality at most regional airports in Brazil.”

• READ MORE: We Fly: Epic E1000

“We have great confidence in the partnership with Epic Aircraft and the success of the
E1000 GX. We have placed an order for 34 planes for the fractional program to be delivered over a span of five years. The first two will be delivered in 2023,” said Rogério Andrade, CEO of Avantto.

Andrade said the aircraft will be used to improve its sharing program’s services in areas where the demand for aviation services is strong but access to commercial flights is limited.

“We are excited to launch our sales in Brazil through this long-term partnership with Avantto, a leader in the country’s aviation sector. This agreement signifies our mutual commitment to providing top-notch aviation solutions to the Latin American market,” said Doug King, CEO of Epic Aircraft.

• READ MORE: Epic E1000 Gains Type Inspection Authorization

Andrade noted that Avantto’s operational experience and strategy of offering high-performance products helped make the partnership with Epic an especially good fit. “For over a decade, we have innovated processes, which is why Epic Aircraft attracted us so much due to its technology, operational costs, and performance,” he said. 

Epic designed the E1000 GX to set new standards for single engine turboprops in terms of aerodynamics and performance. The six-place aircraft has a 1200-horsepower engine and a maximum cruise speed of 333 ktas.

WATCH: We Fly: Watch Our Report on the Epic E1000 GX

The post Avantto Orders 34 Epic E1000 GX Aircraft for Fractional Fleet in Latin America appeared first on FLYING Magazine.

When Jet It ceased operations, aircraft were stranded all over the country. Owners, who at one time relied on the company to manage the airplane, suddenly found themselves learning the logistics of maintaining a HondaJet HA-420, along with the potential pitfalls.

Mechanics Lien

Unpaid vendors are often the first sign a company is in financial distress. In the world of aircraft maintenance, unpaid vendors have options. A maintenance shop, for example, can attach a mechanic’s lien to an aircraft for an unpaid bill.

• READ MORE: Why Jet It Failed

Owners of an aircraft with a lien against it should consult an attorney in the state where it is located and reach out to the maintenance facility to either make a payment or try to negotiate a lower amount.

Putting the Pieces Together

In the case of Jet It owners, they are now thrust into a new position of managing the maintenance of an aircraft that had been the company’s responsibility. 

Former Jet It owners likely are confronting numerous questions, according to Mark Thibault, founder and chief technical officer of Crew Chiefs Corp., which represents clients during inspections for aircraft purchases and sales. Those questions include:

• What is the status of the aircraft? Is it properly hangared? What is the flying/airworthiness status?
• Are the aircraft programs, warranties, subscriptions, and insurances maintained and current?
• Are the logs and records secure, co-located with aircraft, and complete?
• What funds are needed to get each aircraft back online, including any unpaid ramp, MRO, and handling fees, as well as those for pilot recruiting?

In order to quickly get their aircraft back online, according to Thibault, owners will need:

• Permissions for all electronic maintenance tracking systems.
• Comprehensive records review, both physical and electronic.
• A review of the Jet It agreement to assess if compliance was satisfied.
• An assessment, such as a condition survey, or pre-buy inspection of the exterior and interior of the aircraft.
• A pending inspection timeline, with associated due lists, and service bulletin and airworthiness directive compliance.
• An observation flight.

Honda Aircraft Co. has also offered resources for former Jet It owners who have questions or need assistance.

HondaJet Maintenance Cadence

One of the questions circulating in the industry is, “I thought HondaJets were new; there cannot be much maintenance to perform.” Well, yes and no. Like everything else with aircraft maintenance, the answer is “it depends.”

• READ MORE: Honda Aircraft Offers Free Logistics Help to Jet It Customers

The HondaJet is on a phase maintenance program, which means maintenance is not scheduled by the calendar month but instead by the Hobbs meter, according to Anthony Agosta, the HondaJet maintenance manager at Florida-based Banyan Air Service . Banyan serves as the Southeast Service Center for the HondaJet.

Banyan currently has two former Jet It aircraft—one at its Naples location and the other at its main facility in Fort Lauderdale. 

One of the key components of the HondaJet maintenance program is managing the Life Limited Parts (LLP). It is critical that whichever unit of measure is used to calculate life is documented, recorded, and reviewed. LLPs typically include powerplants and landing gear but could be other parts on other aircraft models.

• READ MORE: Jet It Tells Owners To Find New Home for Aircraft

Honda Aircraft establishes 150 flight hours as the increment of measure for maintenance. The cadence is 150-, 300-, 600-hour inspections, and so on. The first major maintenance comes at the 600-hour mark, takes five weeks, and costs hundreds of thousands of dollars.

In the scenario facing the former Jet It fractional owners, the group of eight or nine would typically elect a spokesperson and give them power of attorney, allowing them to negotiate with maintenance providers, among others.

Owners have options when choosing maintenance programs for their HondaJets. The P3 Precision FlightReady airframe service program represents the highest level of service, covering standard replacement parts and labor. The P2 Performance program serves as the middle tier of service and covers parts only. Each plan excludes damage, so you are on your own if you suffer a bird strike or taxi into the hangar. Of course, owners can always maintain their aircraft and pay the maintenance facility for the time and material as they go.

Because General Electric is a first-tier OEM on the HondaJet, it has a separate engine program—the Engine Maintenance Care program (EMC) covers parts, while the EMC2 program covers parts and labor. Again, this excludes damage, so be careful flying through asteroid fields.

• READ MORE: What’s Next for Jet It Fractional Owners

Back to Birth

Aircraft maintenance begins on day one. Flight crew, maintainers, and management companies begin logging flights, incidents, and maintenance actions for the airframe and each engine. These records are part of the aircraft logs, and for LLPs, you need “back to birth,” or everything that happened since it left the factory. 

One of the first actions displaced Jet It members need to do is consult their logbooks. 

Bluetail, a company that specializes in back-to-birth aircraft records for business and general aviation and also a Jet It vendor, has stepped up as a potential resource.

On June 7, Scottsdale, Arizona-based Bluetail offered former Jet It HondaJet owners free and secure access to their aircraft’s digital logbooks and related records in the Bluetail app for a period of 60 days, according to company cofounder Stuart Illian. 

This offer will allow the owners to protect their aircraft’s value while continuing to operate, which may include additional scheduled and unscheduled maintenance events, Illian said. Bluetail’s service is free for those providing proof of ownership.

The company will also provide the owners (or designated users) with any necessary training or product support. Additionally, should the owners decide to continue their Bluetail subscription, the software firm will waive the onboarding fees typically charged for the transition, according to Illian.

Situations like this highlight the value of having an aircraft’s operational and maintenance records digitized and hosted in a cloud-based network, and how especially critical it is for aircraft managed and maintained by a third-party provider.

The post Jet It Fallout Leaves Owners Shouldering Aircraft Maintenance appeared first on FLYING Magazine.

Hopefully, by now all of the owners have had the chance to meet. We received a list of the individual owners from Jet It, along with contact information. If you’re an owner, you should organize a call with your specific owner group ASAP. You are all on the same team, now is the time to get a game plan together.

Appoint one to two people on the team to keep the process moving forward, regardless of direction. Ideally, someone with experience in aviation, as they will need to understand all of the moving parts.  

Even though Jet It CEO Glenn Gonzales suggested “patience” on owner calls last on May 24—but that isn’t great advice.

• READ MORE: Jet It Tells Owners To Find New Home for Aircraft

You own a very expensive asset that needs to be dealt with. Every day that you own it, the more expenses it will rack up. Hangar fees, maintenance, insurance, etc., all cost money. Nothing like having an expensive toy that you can’t use. 

You need to track down the aircraft. Every owner group I’ve spoken with has figured out where their aircraft is. 

Most importantly, find out what your owner group wants to do with the aircraft. You have a few options: you can sell the aircraft; you can put the aircraft up into a dry-lease with another operator; a single (or group of owners) can buy the airplane.

While Gonzales suggested that owners could contract directly with former Jet It pilots, this strikes me as challenging for larger owner groups that are geographically distributed, not to mention questions about legality of such a process. If you do decide to go this route, I would engage with an aviation attorney to make sure you are protected here.

The worst thing to do here is to let the aircraft sit long without a plan. We are all responsible for the bills on our aircraft from here on out (along with unpaid bills that Jet It racked up) and those bills aren’t going to cheap. 

If you decide to sell the aircraft, find a Honda broker or dealer that can help with this. Brokers will be glad to take you on as a client, but I would recommend doing diligence on the broker. Have they sold HondaJets in the past? Do they have experience with the aircraft? Can they help you navigate all of the maintenance issues you need to contend with?

Honda Aircraft Company has a list of dealers on its website, and you can find a dealer to assist here. I would recommend going with this group over a non-Honda dealer because of their familiarity with the jet and mutual interest in seeing a positive outcome for the Honda ecosystem. 

Keep in mind that the aircraft is not going to be flown much over the next few weeks, so find someone that has experience with the airplane and will agree to keep it in compliance with the maintenance up to date.

• READ MORE: Why Jet It Failed 

I live in Tennessee and our Honda Aircraft dealer is Banyan. They provided us with a turnkey proposal, including hangar access to help us manage the aircraft while we figured out what we wanted to do with it. 

Selling the aircraft is only one option. With nine owners, we felt that selling the aircraft was the best path for our ownership group. That way we could move forward making decisions as to our future missions individually. 

Another option is to put the aircraft into a short-term lease with another operator. 

Volato—Jet It’s biggest competitor among Honda Jet operators—has offered a 90-day lease for ownership groups. It is billed as a dry-lease arrangement, where all expenses are taken care of (except for maintenance labor). At $650 per hour, it’s an interesting proposal to get the airplane in the air and generate some revenue to offset most of the fixed expenses, including insurance, hangar fees, and operational fees. 

Matt Liotta, CEO of Volato told FLYING: 

“We feel for the customers who are facing this difficult situation. The entire team at Volato is here to help as much as we can, and we are prepared to take on any number of planes and customers. We do recommend that anyone consult with a lawyer before deciding on how to move forward.”

As noted earlier, getting a good aviation attorney is critical. This will be a long and drawn-out process, with lots of nuances. Getting someone with experience navigating all of the issues (aviation, corporate, and tax law) is critical.

There is some good news out of all of this. 

Unlike a jet card or membership program, Jet It’s fractional program offered direct ownership of an actual aircraft. This means that fractional owners will recoup a large percentage of their investment in the airplane after some initial headaches. 

If it were a membership program, where the asset is prepurchased time on an airplane from a charter operator, like in Wheels Up’s case (NYSE: UP), the only thing that program members would be guaranteed is a position of being a junior creditor in a bankruptcy. 

The post What’s Next for Jet It Fractional Owners appeared first on FLYING Magazine.

At least that is the impression Jet It founder and CEO Glenn Gonzales gave fractional aircraft owners on a series of virtual calls on Wednesday, five days after he ordered a ground stop on the fleet of HondaJets the company manages. 

Gonzales told HondaJet owners in the Jet It program their aircraft “will not be flying under Jet It” any longer. 

(Disclosure: I am a Jet It fractional owner and attended the fractional owner calls.)

Gonzales suggested fractional owners should consider an array of options that include transferring the aircraft to another operator, selling the aircraft, or contracting directly with former Jet It pilots on furlough. 

• READ MORE: Jet It Moves into Furloughs as Pause in Operations Continues

Fractional aircraft owners typically own a percentage of the aircraft, rather than the entire airplane. Jet It offered a range of ownership options, with the smallest being one-tenth ownership. 

In a fractional relationship, a group of owners is pooled together to purchase an aircraft. The aircraft is then contracted out to an operator that flies the aircraft, oversees pilots, maintenance, flight operations, scheduling, and all of the day-to-day tasks of operating it. Owners typically pay a monthly maintenance contract, in addition to a per-hour operating fee when they fly on the aircraft. 

Fractional ownership programs are attractive for consumers because the pool they belong to makes it less expensive to gain ownership of an aircraft, rather than buying it outright. Operating costs are also shared between the group of owners. 

Gonzales Blames HondaJet 

As a Jet It fractional owner myself, I attended one of the calls with the other owners of our aircraft. It was the first time I had met any of the other owners, and we were processing the news. 

During our call with Gonzales, he put the blame for the failure of Jet It entirely on the Honda Aircraft Company, claiming that HondaJet aircraft suffered from a series of runway overruns. He cited a total of 20 incidents since the HondaJet was first introduced in December 2015. He compared that to the Embraer Phenom 100, which has seen 21 runway incidents since its first delivery in 2009. 

Gonzales said the catalyst for grounding the HondaJet was an incident in Summerville, South Carolina. A Honda HA-420—not owned by Jet It—skidded off the runway and ended up in the grass. 

• READ MORE: Honda Aircraft Says It Settled Its Lawsuit Against Jet-It

“This one was different in the sense that it caught fire,” Gonzales said. 

Gonzales said Jet It has requested due diligence information from HondaJet on the safety of the aircraft, documentation on the events surrounding the runway incidents, and why this has happened with the Honda aircraft. 

Gonzales did not give a timeline of when Jet It expected to resume operations but made it very clear to owners that the company program they had participated in was terminating, and the owners would need to figure out what to do with their aircraft. 

Skepticism of CEO Claims 

One owner on the call said the story “didn’t feel right to him,” challenging Gonzales with a question of why Jet It is the only company to ground HondaJets and that neither any transportation authority nor Honda had required or even suggested it. The owner also said, “This feels like a negotiating tactic with Honda or your (fractional) owners.” 

Another owner suggested it “wasn’t an airplane issue but rather a company issue.” 

That owner pointed out that Jet It had also grounded its Phenom 100s, suggesting they should be flying if the company made the decision about the HondaJet entirely based on safety factors. 

The same owner also questioned Gonzales about the financial condition of Jet It, saying “it sounds like you are bankrupt to me.” 

The sentiment resonated with many of the other owners on our call. 

In response, Gonzales claimed he did not intend to file for bankruptcy but referenced the financial challenges of running a company with its entire fleet of aircraft grounded. He also asked for patience but didn’t suggest why it was merited. 

With the entire Jet It fleet currently grounded, nearly all of the company’s staff have been terminated, including the pilots. This includes pilots flying both the HondaJets and Phenoms. 

Jet It boasted a fleet of 20 HondaJets and a couple of Phenom 300s and Gulfstream G150s. Prior to this action, Jet It was the largest operator of HondaJets in the U.S. 

Fractional Owners Consider Options 

In a situation where the operator—in this case Jet It—is shutting down its fractional contracts, the owners must come together to decide what they want to do with the aircraft. This can be challenging because it requires the owners to reach a consensus on what they want to do. As is the case with many of the Jet It owners, often they previously have had no relationships or contacts with the other owners and are frequently unaware who the other partial owners are. 

Now, they must come together, develop a plan, and decide on a course of action. Because Jet It has laid off nearly all of its workforce, the fractional owners have to do the work themselves, with little help from the company. It is a mess. 

Do you have a news tip to share? Send me a message @freightalley on Twitter. Your name will not be used without your permission.

The post Jet It Tells Owners To Find New Home for Aircraft appeared first on FLYING Magazine.

FIRESIDE CHAT TOPIC: Partners in Aviation is a different type of fractional aircraft program. Think of it as Match.com for business owners looking to add the right aircraft to their assets.

DETAILS: Mark Molloy opens up about Partners in Aviation and how it helps aircraft owners who are looking for an aircraft to support their businesses but have a fear of the fractional process. It matches two owners to one aircraft under a structure that provides access comparable to sole-ownership. For owners flying between 75 and 200 hours per year, it’s a solution that never before existed.

SPEAKER: Molloy is president and co-founder of Partners in Aviation.

BIO: Molloy started his aviation career right out of college as a sales account executive for Beechcraft. He spent 34 years with them, then retired to his second aviation job with Partners in Aviation.

KEY QUOTES FROM MOLLOY:

“We are fractional by definition because there is more than one owner, but in the standard fractional model that’s multiple owners with multiple aircraft in an infrastructure around that ours is a little simpler. Ours is defined as two owners, one aircraft. That’s it, That’s all it is. By definition, we are a fraction, but only a fraction of two.”

“I sold new King Airs, and most of my clients had that debate of ‘how am I going to justify this? How am I going to justify owning this airplane that I really want but it seems like a lot of dollars, and I don’t know how much I am going to use it?’ I spent a good part of my time helping them justify that decision, and oftentimes, as we kind of analyzed that sharing the aircraft made sense, the math of partnership was pretty clear; it was everything else that was a bad idea. All of the ‘yeah, buts,’ so that’s kind of where it started.”

“Everyone is attracted to the math but afraid of the word ‘partnership.’ If it doesn’t raise the hair on the back of your neck, you’re not thinking straight.”

“The four areas we primarily had to solve are how you own it, how you share it, how you exit it … how am I protected in this you know financially and from a liability standpoint.”

“The low-end clients we serve are 50-hour-a-year clients, and the high-end clients we serve are 150-hour-a-year clients. If they are flying less than 50 hours, they are probably not going to do what we do because there is capital invested here because this is ownership, and you have to get up to around that 50-hour mark before it’s worthy of that investment.”

The post Virtual Event: An Easier Way to Co-Own an Aircraft appeared first on FLYING Magazine.

New York City-based Wheels Up (NYSE:UP), a private member-based aircraft operator, saw record revenue growth of 113 percent in the second quarter of the year, the company announced Thursday.

It also reported that membership has grown to more than 10,500, nearly double what it was the same time last year. Active users grew, as well, to more than 11,200, up 27 percent.

Other second quarter highlights include:

• Live flight legs — the number of completed one-way, revenue-generating flight legs in a given period — increased 146 percent year over year to 18,234 in total
• Net loss increased by $1.6 million year over year to $29 million
• Adjusted EBITDA improved by $7.6 million year over year to $8.5 million

“The accelerating growth in our revenue is a great way to mark our first reported results as a public company and creates a solid foundation to build upon,” said Kenny Dichter, Wheels Up chairman and CEO, on Thursday. “Our iconic brand, combined with our compelling membership model and exclusive partnerships and experiences, have uniquely positioned us to gain market share during this time of robust demand.”

Eric Jacobs, the company’s CFO, added, “The demand in the first half of the year has increased across all cabin classes, and our diverse fleet of aircraft is contributing to our success in attracting new Members, retaining existing members, and driving an increase in live flight legs.”

Wheels Up was founded in 2013 by Dichter. Last month, the company became listed on the New York Stock Exchange after announcing that it has officially closed a “business combination” transaction with Aspirational Consumer Lifestyle Corp., a special purpose acquisition company (SPAC).

The post Wheels Up Announces Record Revenue Growth for Second Quarter appeared first on FLYING Magazine.

The pair won the prestigious EY Entrepreneur of the Year 2021 Southeast Award.

“An amazing recognition for the entire Jet It and JetClub teams,” Gonzales said of the award. “Vishal and I are so proud of the endless achievements that each team member has made happen.”

What is Hybrid Ownership?

Jet It and European sister company JetClub offer what they call “hybrid ownership.” Owners can choose to purchase one of six plans, from 10- to 50-percent ownership of the $5.4 million HondaJet Elite S, providing anywhere from 25 to 130 days of use.

Unlike other fractional ownership models, Jet It/JetClub allows owners to book the airplanes for an entire day rather than strictly by the hour. Customers won’t necessarily fly on the exact airplane they own. It could be any tail number in the fleet.

Another unique offering that Jet It provides is the ability for owners to acquire a HondaJet HA-420 type rating and fly the jet themselves as part of the Red Jet Squadron.

Where They Came From

Jet It opened for business in 2018 and has already placed 10 HondaJets into operation. The company has an additional 10 HondaJets on order and Gonzales said he expects the next delivery of a HondaJet Elilte S this month.

Both Gonzales and Hiremath previously worked for Honda Aircraft Company and Gulfstream Corporation. Gonzales holds an MBA from the Darla Moore School of Business at the University of South Carolina and he said he spent several years studying the market viability for the Jet It concept prior to starting the company.

With this achievement, Gonzales and Hiremath are eligible for consideration for the Entrepreneur Of The Year 2021 National Award. This year’s winners will be announced at the Strategic Growth Forum on November 13.

Ernest and Young has recognized successful entrepreneurs in more than 60 countries for the past 35 years and the winners of the awards become members of an exclusive network of industry leaders to whom they can reach out for insight and advise.

Previous winners include:

• Howard Schultz of Starbucks Corporation
• Reid Hoffman and Jeff Weiner of LinkedIn
• Sara Blakely of SPANX, Inc.

Gonazles and Hiremath recognize that continued success won’t come without hard work.

“On the way to our goal of changing how people travel around the world there will be many more problems to solve, challenges to overcome, and long nights to endure,” Hiremath said.

The post Jet It Cofounders Win Award for HondaJet Ownership Solution appeared first on FLYING Magazine.