The CEO of a private aviation company explains the 'empty leg' trick that can make chartering jets cheaper

22.08.2024 - 21:21 / insider.com

While flying private is largely reserved for the rich and famous, FlyJets, an aviation-charter marketplace, says it can offer the average traveler a cheaper way to experience the luxury.

FlyJets' CEO, Jessica Fisher, told Business Insider that the startup doesn't own or operate planes but works like an Airbnb for private aviation. Its core business is serving as a middleman between aircraft providers and customers to secure and schedule charters.

Within that is a cheaper alternative Fisher calls "fly empty," which she said could cut the cost of charters by nearly half. It's the latest way aviation companies are trying to make private flying more affordable.

Fisher said these charter aircraft might otherwise fly "empty legs" without passengers to return planes and crew to a home base after dropping off a client. Charter companies sometimes charge for a round trip regardless of whether anyone's on board, so it's cheaper to find another paying party for that empty leg of the journey.

This concept isn't new. Several well-known private aviation companies, like VistaJet and NetJets, sell empty legs at a discount after someone else books a round-trip flight.

But Fisher said there's no guarantee the legs will sell, and they're typically predetermined routes, which means fewer options and flexibility for customers.

Related stories

Fisher said that instead of taking other people's empty legs, FlyJets fills empty planes by coordinating a trip as two separate legs from the start and splitting the price.

"There's a lot we can do in terms of being very cost-effective for flyers and advantageous for aircraft providers in terms of aircraft utilization and, therefore, revenue," Fisher said. "It's a win-win."

Fisher said that FlyJets customers could create empty legs through a FlyJets+ membership, which costs $290 annually, and that flights are matched with another party flying the opposite route.

"If two parties need to fly between New York and Miami and they can commit to opposite legs, then they both save 40%, and the operator gets 10% more income from both parties," she said, adding that flying fewer empty planes is better for the environment.

For example, Fisher said a seven-seater midsize plane could cost $25,000 round-trip for one party. But if FlyJets secures an "empty-leg split" for $15,000 in each direction, customers would pay about $2,100 a seat, and the aircraft provider could get $5,000 more.

Most fares for the same route on Delta Air Lines or United Airlines were $500 to $1,000 one-way through November.

Fisher said that when a match on the opposing route can't be found, customers won't get the "fly empty" price but can still book the plane outright at the market rate for the charter. She argued that