For Private Jet Providers: A Closure, A Suspension And A Deal

18.02.2024 - 13:09 / forbes.com / Airlines

The forecast for private jet flight providers in 2024 is headwinds and turbulence, although expectations are activity will stay double digits above pre-Covid levels.

It was evident over the past week that it won’t be a straight line.

On Saturday, Set Jet emailed members to say it was shuttering immediately.

The Scottsdale-based 2019 start-up closed after financing fell through, and it could not complete a SPAC merger, which had been delayed several times.

According to its CEO, Tom Smith, who had founded Taser, the flight provider ran out of money.

It had been trying to enter the by-the-seat or shared private jet space that possibly lies between commercial airlines’ first class and chartering an entire private jet.

While Vista’s XO, JSX and Tradewind Aviation have been expanding, others such as Blade, Aero, and Surf Air have cut routes.

The key benefit of by-the-seat providers is using private terminals, avoiding long lines and crowded airport terminals.

Set Jet members paid $99 per month and then could book flights for $750 to $1,550 per segment.

Its route network spanned Scottsdale and Las Vegas to Southern California, Salt Lake City, Aspen and Los Cabos.

According to SEC filings, as of last June, it had over 2,800 members and was losing money. During the first six months of 2023, it generated $7 million in revenues with an operating loss of $5.5 million.

Over the period, it operated 1,102 charter flight legs. Smith says there is no money to refund members who had paid for future flights.

After 30 years, Georgia Jet said it was suspending its charter operations.

A sister maintenance company continues, according to its owner, Lea Williams, who bought the flight provider in 2012.

While Georgia Jet only had five airplanes, it represents the long tail of operators who make up the charter market.

Although there are over 2,000 Part 135 operators in the U.S., just over 600 operate jets, and only around 60 have at least 10 charter jets on their certificate, according to Tuvoli.

Williams said the decision to suspend charter flights was due to a shortage of pilots.

He said pilots were leaving for better pay that comes with larger jets – Georgia Jet’s fleet was made up of light jets – and the regional and mainline airlines.

Williams says his business was mainly wholesale, and he will refund any payments for future flights that will no longer take place.

At the top of the private jet food chain, NetJets may have avoided a more significant conflict with its pilots.

More than 3,000 pilots will vote on a revised mid-contract agreement that could increase compensation by 52.5%.

NJASAP, the union representing the pilots, has said the unit of Berkshire Hathaway was at risk of losing experienced pilots to the big