According to the study, Alaska had 4,996 private jet departures per 100,000 residents and a total of 36,650 departures in 2023, averaging over 100 flights daily.

• READ MORE: Finding Freedom by Flying in Alaska

Wyoming and South Dakota also ranked high with Wyoming reporting 24,263 jet departures a year and 4,173 registered aircraft, while South Dakota had 26,944 annual departures and 2,961 private jets. Montana, North Dakota and Nevada rounded out the top six, while surprisingly no East Coast states made the top 10.

In fact, despite the significant wealth in New York, Connecticut, and Maryland, these states had the fewest annual private jet departures per 100,000 residents.

“America flies more private jets than any other country in the world, with a grand total of 3,123,007 departures in the U.S. in 2023,” Rustic Pathways CEO Shayne Fitz-Coy said.

This article first appeared on AVweb.com.

The post Study Reveals Alaska Leads U.S. Private Jet Departures appeared first on FLYING Magazine.

Business class ticket costs have a way of being all over the map, and especially for popular last-minute flights, the odds of getting a seat in the first place is slim. 

While I must admit that the words “I’ll just take a private jet instead” have never left my mouth, there are plenty of circumstances that warrant them. If you often find yourself on flights between difficult city pairings, traveling with large groups, or in need of highly flexible travel arrangements, you may well have a strong business case for chartering a private jet.

Understanding Commercial Flight Costs

As with any travel option, flying commercially has its pros and cons.

Flying with the airlines often provides fairly direct connections between points A and B, along with basic services that make trips comfortable enough to seem worthwhile. 

In certain cases, costs may be fairly straightforward. If a company is sending a single Dallas-based employee to a conference in Chicago, the base fare for a direct, round trip economy ticket may be less than $200. Not a bad deal.

There are, of course, other fees such as baggage charges, fuel surcharges set at the discretion of the airlines, and taxes. Taxes and fees can often add 15 percent or more to the total cost.

This may still suit a single traveler on a direct route between two major hub cities. But what if the trip begins not in Dallas, but in Abilene, Texas, and rather than terminating in Chicago, it ends in South Bend, Indiana? 

The trip just went from a two and a half hour flight time to a seven or more hour ordeal. All the while, the base economy fare just ballooned from $200 to $800 before any upgrades, add-ons, fees, or taxes. 

First and Business Class Pricing 

Perhaps the traveler needs the peace, quiet and space first or business class fares offer. This might afford them the rest and productivity they need for whatever the trip holds in store, but the base fare also doubles or triples or more as a result.

For the round trip Abilene to South Bend example, a weekday business class fare scheduled a few days in advance can run around $1,500 per person. If a seven-person executive team is traveling together, this now costs more than $12,000 at face value if booked within a week of travel. 

Keep in mind as well that business class fares often offer fewer flight options. Thus, even nonstop business class fares do not necessarily make good solutions for those who require flexibility. 

Hidden Costs of Flying Commercial

Other costs might be of interest as well.

An in-flight internet connection, for instance, could add another $20 per person for a round trip. Premium food and beverage selections can add up. Additional luggage considerations to bring presentation materials or demonstration equipment might add hundreds more to a ticket.

Even if travelers opt against business class, if they need more space than a basic economy ticket allotted, they might still upgrade to a premium seat that could add another $100 or more to each ticket. Groups of travelers who want or need to sit together will often need to pay fees to reserve specific groups of seats as well.

Demystifying Private Jet Charter Costs

Costs associated with jet charters are generally driven by a handful of factors, but under the right circumstances, may be lower than flying commercially.

These include the trip’s distance and billable flight time, number of seats required, and other add-on services, such as ground transportation or catering.

Hourly Rates and Factors Affecting Cost 

Private jet charters are usually charged by the hour, and costs are primarily driven by aircraft size and total trip distances.

Hourly rates for private jets can range from somewhere around $1,500-$2,000 for small light jets to more than $15,000 for large jets, such as the Gulfstream G650.

The exact base rates will often be most heavily influenced by factors like fuel prices and crew requirements.

Additional Fees of Private Jets

Beyond base hourly rates, expect additional costs driven by fuel surcharges, ground handling and landing fees, crew requirements, in-flight catering, ground transportation, and any overnight expenses.

While not all of these are unique to flying private, their sum still plays a large role in your trip’s final cost.

Bear in mind that some companies—for instance, NetJets—offer solutions with no separately charged items or services.

Cost-Sharing Options of Private Jets

Even when it is an effective option, private flight still comes with high costs.

That is why it is crucial to select the most effective aircraft for the mission.

Be careful to match the plane’s seating and performance capabilities closely to the trip’s requirements. Consider consolidating as many travelers as feasible onto a single flight or sharing the flight and splitting costs with other companies or individuals with similar travel plans.

Additionally, ask charter companies about other options like “empty-leg” flights. These discounted one-way trips help those companies monetize necessary repositioning flights that would otherwise carry no passengers. These may require somewhat more flexibility on your part but often come with substantial cost savings.

For those who fly regularly, fractional jet ownership through a company like NetJets may be a cost-effective alternative to chartering.

Fractional ownership essentially offers guaranteed access to an aircraft. This access is usually based on a set number of prepurchased flight hours. Ownership is generally sold in terms of shares of an aircraft’s total annual flight hours. So, for example, an eighth share of an aircraft that will fly 800 hours in a year gives the fractional owner access to 100 flight hours during that year.

Fractional ownership is often a more cost-effective and reliable solution for frequent fliers than chartering, while it also eliminates many of the complexities of full ownership.

Fractional owners can expect simple fixed costs. These often include some form of a capital cost, monthly management fee, occupied hourly rate, and fuel adjustments. Owners may also have the option to resell unused portions of their share when their contract ends.

Cost Comparison: Private Jet vs. Commercial

The potential for cost savings with private aviation against first or business class most often comes with group travel and time savings.

The group of round trip business class travelers mentioned earlier might spend $12,000 and seven hours each way traveling between Abilene, Texas, and South Bend, Indiana. The same group on a private jet rental might spend only three hours each way for less than $10,000 round trip. 

The best way to get a clear grasp on total costs and to build a solution for your needs is to contact a reputable charter operator or broker such as Leviate Air Group or Trilogy Aviation Group.

Factors to Consider Beyond Cost

Cost considerations aside, private aviation primarily offers flexibility.

Travelers are free to arrange their plans around personal schedules while also accessing thousands of additional airports worldwide. Business travelers, or those simply looking for a more comfortable experience, will appreciate unparalleled privacy, and freedom from the distractions inherent to commercial flights.

Security is enhanced as well with fewer safety variables to consider than when transiting major public airports. 

Perhaps the most significant complications with traveling by way of private jet rental are environmental considerations.

It should come as no surprise that travelers are responsible for much higher carbon emissions per passenger when compared to commercial flight. Many feel it is important to weigh the benefits against the environmental footprint. Heightened awareness and passion around global climate change has led to increased scrutiny of the roles private aviation— and those who utilize it. 

In addition to any personal reservations travelers may have, they may also need to contend with how private air travel might impact public perceptions of themselves or their companies. Some choose to consider participating in various carbon offset programs to help minimize the impact of their travel requirements.

Find a Charter Partner to Meet Your Budget

Choosing private jet travel over first and business class must make sense for your specific situation and travel needs. But when it does make sense, private aviation offers unparalleled flexibility, comfort, and privacy.

Consider connecting with reputable charter carriers or fractional ownership companies like Leviate Air Group, Trilogy Aviation, or NetJets. Experienced companies like these can tailor their services to fit your budget and preferences.

Take the next step by reaching out for personalized consultations and discover how private jet travel can elevate your flying experience.

FAQ

Is it cheaper to fly first class or private?

Commercial first-class is generally less expensive for individual travelers, but private jets can be more cost-effective for group travel or when traveling between cities and airports without direct flights.

Is it worth it to charter a private jet?

Chartering a private jet can be worthwhile when flexibility, privacy, and personalization is needed. Private jet charters are particularly cost-effective for groups large enough to fill a plane or for travelers with unique scheduling needs.

Is it cheaper to fly in a private jet?

Private jet charters are generally more expensive than commercial flights but can be very cost-effective for groups or when considering the value of time saved and the convenience offered.

The post Cost of Chartering a Private Jet vs. Flying Commercial appeared first on FLYING Magazine.

Check out these charter jet services for your next flight. 

Quick Look: 7 Best Charter Jet Service Options

• Best for availability: NetJets
• Best for short advance notice: Trilogy Aviation Group
• Best for onboard experience: Leviate Air Group
• Best for flexibility: Magellan Jets
• Best for empty-leg flights: Wheels Up
• Best for membership perks without upfront costs: Silver Air
• Best for international Travel and sustainability: VistaJet

What Is a Charter Private Jet?

Charter jet services differ from commercial flights operated by airlines in that they are unscheduled. Charter jet flights are booked and reserved directly by an individual or business that is essentially renting the entire aircraft and its pilots for their travel. 

Best Charter Jet Service

The best charter jet services offer a suite of amenities, newer aircraft, are conveniently located at an FBO near you, and will fly you to wherever you want to go while providing a top-of-the-line reservation and cabin experience. Following are several top charter jet services to consider when booking your next charter jet flight. 

NetJets

NetJets, the world’s first private jet charter company and aircraft management system, claims to own and operate the largest and most diverse fleet of private jets in the world. Travelers can choose from long-range jets that seat up to 14 passengers and can accommodate overseas flights of up to 16 hours to light jets that seat up to six passengers and can fly up to four hours—and everything in between. 

Headquarters: Columbus, Ohio

Service areas: U.S. and international

Founded: 1964

Fleet: NetJets boasts a global fleet of more than 1,000 aircraft and plans to take delivery of nearly 100 factory-new private jets in 2024. 

Pricing information: Varies based on aircraft type, destination, travel dates, times, and membership program. Membership is required.

Trilogy Aviation Group

Offering round-the-clock services to more than 6,000 airports, you can schedule a flight with Trilogy Aviation Group with less than four hours advance notice. 

Headquarters: Fort Worth, Texas

Service Areas: U.S.

Founded: 2018

Fleet: Owns none of its aircraft but has access to more than 7,000 turboprops, executive jets and long range jets from the TBM 960 to the Citation X that are operated by properly certificated U.S. and/or foreign direct air carriers.

Pricing information: Varies based on aircraft type, destination, travel dates/times, and program. Choose from fixed route options to empty legs. Membership is not required. Instant flight quotes can be obtained on their website.

Argus certified? Yes

Leviate Air Group

Clients are raving about the onboard experience and customer service at Leviate Air Group. The Dallas-based charter and aircraft management company operates a fleet of seven aircraft and has access to a diverse global network of aircraft with passenger capacity ranging from three in the Cirrus Vision Jet to 18 in the Gulfstream G550.

Headquarters: Dallas

Service areas: U.S. and international

Founded: 2015

Fleet: There are currently seven aircraft under management, including two Citation XLS, two Challenger 300, a Learjet 45, a Gulfstream G200, and a Gulfstream G450. Their global network of aircraft is also available for charter bookings and includes 15+ additional aircraft types.

Pricing information: Varies based on aircraft type, destination, travel dates, times, and membership program. Membership is not required and quotes can be requested on their website.

Wheels Up

With more than 1,500 aircraft and over 5,000 airports to choose from, Wheels Up provides charter flight services to fit your travel needs, and it has a handy app that provides on-the-go flight price estimates. Its empty-leg pricing is particularly attractive (for members only). 

Headquarters: New York City

Service areas: Point to point in North America and Europe, and international flights that begin or end in the U.S.

Founded: 2013

Fleet: The Wheels Up Exclusive fleet consists of 93 aircraft that include King Air 350i, Citation Excel/XLS and Citation X. Additionally, more than 1,250 other partner aircraft are available in the light, midsize, super-mid and large-cabin categories. 

Pricing information: Varies based on aircraft type, destination, travel dates, and times. Membership is not required; however, membership includes perks such as booking empty leg flights ($320); shared flights with other members (minimum 50 percent savings), and members-only exclusive events. Membership initiation fees start at $2,995.

Magellan Jets

With more than 12 years of experience and a flawless safety record during that time, Magellan has hundreds of aircraft options to choose from in its Magellan Jets Preferred Network. In 2021, The Robb Report named Magellan Jets “Best of the Best,” stating it was “one of the most innovative and consumer friendly jet programs.” 

Headquarters: Quincy, Massachusetts

Service areas: U.S. and international

Founded: 2008

Fleet: Owns none of its aircraft but has access to light, mid-size, super mid-size, and heavy cabin aircraft that are a part of its Magellan Jets Preferred Network. Network operators are monitored and reviewed to ensure the top levels of safety and operational excellence are upheld. 

Pricing information: Pricing varies based on aircraft type, destination, and travel dates and times. On-demand charter flights, jet memberships, and jet cards are available.

• READ MORE: 5 Best Private Jet Memberships

Silver Air

A private aircraft management and charter company, Silver Air offers membership options as well as direct charter flights. Its Flight Club jet card program offers fixed one-way pricing within the Continental U.S. and for flights to Mexico, Canada, the Caribbean, and Hawaii.

Headquarters: Santa Barbara, California

Service areas: U.S. and international

Founded: 2008

Fleet: A large, diverse range of aircraft, from light jets, mid-cabins and super-midsize jets all the way up to Boeing Business Jet with a heads-of-state configuration for 16 passengers.

Pricing information: Varies based on aircraft type, destination, travel dates, times, and program. Three different Flight Club membership options are available. None of the memberships require an initiation fee.  

VistaJet

With its fleet of 80-VistaJet-branded aircraft and additional approved air carrier partner aircraft, VistaJet can arrange flights to 1,900 airports in 96 percent of the world’s countries. If reducing the global carbon footprint is important to you, VistaJet is your charter jet service. The company has committed to being carbon-neutral by 2025. 

Headquarters: Luqa, Malta, with offices in London, New York, Los Angeles, Hong Kong, and Dubai, United Arab Emirates

Service areas: U.S. and international

Year Founded: 2004

Fleet: 80 mid- to large-cabin, ultralong-range business jets consisting of Bombardier Global and Challenger aircraft that can seat up to 14 passengers. 

Pricing information: Varies based on aircraft type, destination, travel dates, times, and program. Direct charter flights start at $15,000; memberships with various perks are available for frequent flyers. 

How to Charter a Jet

It’s relatively easy to arrange for a charter flight. Simply choose the charter jet service you’d like to contract and visit the company’s website. Most of the charter jet services listed above offer direct charter flight (non-membership) options. 

From the website or an associated app, you can enter your departure and destination details, along with the times/dates of your desired travel to get an estimated cost for your flight. Charter flights can also be booked over the phone. 

Charter jet memberships offer additional perks, such as 24-hour concierge services and discounted pricing, as well as access to empty or “hot” legs (where an aircraft is being relocated, allowing you to fly at a drastically reduced price). It’s important to first try flying directly with a charter jet service before becoming a member, so you can sample the company’s quality of service and reliability. 

Step 1: Visit the Website or App

Go to the website of the charter jet service of your choice and click on “book a flight.”

Step 2: Select the Type of Aircraft and Airport

Enter your departure and destination airports and select your aircraft of choice. Some additional details may also be required (e.g., your name/contact information), in order for you to receive an estimated cost for the flight. 

Step 3: Receive an Estimate and Follow Up for Additional Details

Once you get an estimate for the cost of your flight, be sure to follow up with a representative over the phone or via email to ensure you have information regarding baggage allowance, parking, etc. 

Try Chartering a Flight Today

With the hassles of delayed flights and lost luggage increasing by the day due to workforce shortages at the commercial airlines—especially around peak times, such as holidays—it’s never been a better time to try a charter jet service. 

Learn more about jet charter companies and all things aviation with a subscription to FLYING Magazine.

FAQ

How much would it cost to charter a jet to Las Vegas?

The cost of flying to Las Vegas depends upon your departure airport, the type of aircraft you want to travel in, the jet charter service, and the day/time you wish to travel. If you’re flying with VistaJet and booking a flight directly (no membership), a flight to Las Vegas will start at $15,000.

How many passengers can go on a charter jet?

Typically up to 14 passengers can travel on a charter jet. Some jets allow up to 16 passengers.

How fast do charter jets go?

Charter jets typically travel from 400 to 700 mph.

What is the average cost to charter a jet?

Private jet charters can range in cost from $2,000 per hour to $25,000 per hour or more.

The post Best Private Jet Charter Companies for Your Next Getaway appeared first on FLYING Magazine.

But in the last few years—especially following the pandemic—this life of luxury has become more accessible than ever through the growing popularity of charter services. In this article, we’ll discuss what a charter flight is, some of the (less obvious) benefits, and how to charter a private jet.

What Is a Charter Flight?

Here’s a dirty little secret: That celebrity you follow who always posts pictures of trips on a private jet likely doesn’t own it (we’re not talking about Taylor Swift here, folks). Given that the cost of a new private jet can easily reach $70 million, plus hundreds of thousands of dollars in annual operating costs, owning a private jet is out of reach for even the average celebrity. Even at the higher end of wealth, many people opt for fractional ownership (think timeshare for planes) through companies like NetJets. 

The far more common, cost-effective, and accessible path to flying private, however, is chartering a plane. Chartering a plane is distinct from flying commercial in that, when you charter a plane, you are effectively renting the entire plane. Essentially, you tell the charter company what kind of plane you want, where you want to go, and when you want to go. It does the rest.

There are a number of benefits to chartering planes. For example, it enables you to:

• Avoid regular airport terminals and security, saving time and a lot of headache.
• Fly to smaller, more convenient airports, potentially allowing you to visit multiple. locations (i.e. that factory or satellite office) in less time. 
• Not be subject to the airlines’ schedules, providing more flexibility.
• Stay away from other passengers.

To be clear, flying commercial—even first class—will almost certainly be cheaper. But if you value your time, convenience, and flexibility, the benefits of chartering your own private jet may be worth it. Luckily, thanks to increased demand and competition, booking a private jet has never been easier.

5 Steps to Book a Private Jet Air Charter Service

From finding a plane to charter to receiving a private jet quote, charter companies have stepped up their game in recent years to make this option extremely accessible. Here are the steps you should follow to charter a private jet.

Step 1: Identify Your Executive Jet Charter Needs

If you need to fly from Los Angeles to New York City on a Monday morning and return Tuesday afternoon, you can likely find a first-class ticket on an airline that provides the convenience and comfort you desire. However, if you need to fly from Midland, Texas, to Des Moines, Iowa, for a business meeting at 8 a.m. then drop off your dog in Billings, Montana, by noon before a 4 p.m. meeting in San Diego on a Wednesday, a commercial airliner probably isn’t going to work. 

That’s where the flexibility of a charter jet can be beneficial. Most people don’t realize that in addition to the major international airports in large cities, there are hundreds of regional airports that airlines service less frequently, if at all. Private jets, on the other hand, can access these locations easily, providing greater convenience to passengers. 

If you crave such convenience, then start thinking about your budget. We’ll break down private jet quotes in another step, but generally speaking, the bigger the jet, the bigger the bill. Size depends on two variables: the number of passengers and distance to travel. Private and business jets can carry anywhere from four to 19 passengers, plus crew. However, even if you are the sole passenger, small jets simply cannot carry enough fuel to fly long range. You’ll need to pay for a larger jet with greater range if you are expecting to travel from, say, New York to Milan.

Based on your destination and passenger requirements, charter jet companies like Trilogy Aviation Group will determine the type of plane you need.  

Step 2: Research Private Jet Charter Airlines

Next you’ll want to do a little research. Unlike the extremely regulated airlines, charter companies vary in quality. The FAA’s Safe Air Charter initiative encourages customers to be weary of deals that seem too good to be true. While competition may drive down prices slightly, licensing, maintenance, and jet fuel aren’t cheap.  

Well-known companies like NetJets and Leviate Air Group have excellent safety and service records. Deciding between similarly reputable companies might come down to availability based on the size of their fleet and the type of jets offered. Some companies specialize in light jets, such as the Cessna Citation CJ3, while others may focus their businesses on longer range jets, such as the Global 6000 or Gulfstream G550. 

These considerations can seem dizzying to the average customer. That’s where a private jet broker can come in. Brokers are like realtors for planes. They match customers to charter companies based on all of the requirements discussed above, hunt for deals, and charge a commission for their service. You can also check out our guide to the best charter jet services for recommendations.

Step 3: Get Private Jet Quotes and Compare Options

Obtaining a private jet quote has never been easier online. For example, Trilogy Aviation Group empowers you to obtain a quote with just your origin and destination, travel dates, and number of passengers—it’s like Google Flights for chartering a private jet.

Keep in mind these are estimates, and the cost will be affected by a number of factors, including the:

• Type of plane 
• Distance to travel 
• Airport fees (i.e. landing fees) 
• Jet fuel surcharges, which are the primary variable costs

Additionally, insurance, cost of regulatory compliance, maintenance, and flight crew are rolled into these prices. Regardless, expect to receive quotes for hourly rates (i.e. $4,000 per hour). In rare cases you may see “all-in” fees, but these are typically only offered for empty legs.

While these fees quickly add up, keep in mind you are flying private, and chartering is usually far more cost-effective than owning your own jet. Still, with so many charter companies competing, don’t be afraid to compare quotes and negotiate certain fees. 

Step 4: Book Your Charter Flight

Once you’ve decided on a private jet operator or broker, booking is fairly straightforward. You’ll receive a service contract, which you should read carefully, sign, and remit with payment. Some companies accept credit cards, while others require wire transfers (after all, we are talking tens of thousands of dollars, in most cases). Additional fees, such as limousine services coordinated by the charter company for instance, will be calculated and added to the final bill.

While flying private offers some level of anonymity, you’ll still need to provide proof of identification and, for international flights, passports and visas (if applicable) for all passengers. Don’t be surprised if the pilots also ask about things like food or plants in your luggage, as you are required to report such items to customs.

Step 5: Prepare for Your Flight

There are a few things to know before you go. 

First of all, say goodbye to busy airport terminals. Private jets operate out of FBOs. These are usually located on the opposite end of the airport from commercial terminals, and provide all of the comfort and convenience you would expect when paying for a private jet. In most cases, you can show up just minutes before your flight, check in with the FBO desk, and have a seat in the lounge. 

The FBO will notify your pilots of your arrival, and you’ll be escorted to your plane. If you opt for limousine service booked through the operator, you may skip the FBO altogether and instead be driven directly to your plane. 

That’s right: no TSA, no luggage check. The pilots are obligated to ensure none of the baggage poses a safety to flight, but unless you’re traveling internationally, don’t expect to go through metal detectors or remove your shoes. Just hand your bags to the flight crew and settle in for a quick preflight briefing, and you’ll be taxiing within minutes. 

Depending on the size of the plane, you can expect first-class service from the flight crew, including meals if available. Many operators will allow pets and even your own beverages. Watch movies, prop your feet up, and relax. Do as you please, so long as you don’t cause a safety concern for the flight crew. 

So, Now You Know How to Charter a Private Jet…

Expensive? Relative to commercial flying, yes. Convenient and comfortable? Absolutely. If you value your schedule, flexibility, and privacy, chartering a plane can be worth the cost and has never been more accessible. 

Still, do your research and ensure the operator is safe and reputable. And most of all, enjoy it! Flying in a private jet is true luxury. 

FAQ

How much does it cost to charter a private jet?

Costs vary greatly based on the size of the jet, which is primarily determined by the number of passengers and the distance to be flown. Short domestic flights for 5-9 passengers may average about $2,000 per hour, while international flights may start around $10,000 per hour. Check out this private jet charter cost estimator for more information.

Is it worth it to charter a private jet?

If you require flexibility in location and schedule, chartering a private jet may be the perfect option for visiting multiple rural sites in a single day. Private charters have access to airfields that airlines don’t and can offer massive time savings by bypassing TSA and airline delays.

Is it better to own or charter a jet?

Unless you fly more than 300 hours a year, chartering is likely more cost effective than owning. Chartering also provides more flexibility in the types of planes on which you fly and allows you to hunt for deals across charter companies. See this analysis of owning vs. chartering a private plane for a more detailed breakdown.

The post How to Charter a Private Jet in 5 Steps appeared first on FLYING Magazine.

Flewber Global, a New York-based private jet charter company, doesn’t compare itself to those companies on account of its air-based offerings, but it seeks to compete with ground-based rideshare services. According to an SEC filing, the firm has filed for an initial public offering to be listed on the Nasdaq under the symbol FLYF. The filing calls for a capital raise of up to $8 million, and pricing terms were not disclosed. Maxim Group LLC and Joseph Gunnar and Co. are joint bookrunners for the deal.

Flewber is an on-demand private charter service that operates a premium brokerage division and a free app, but the company is also looking to add a Part 135 air taxi business in the coming months. Users can book local, regional, or international flights in the U.S., Canada, Mexico, and Caribbean, which are operated by third-party private aircraft operators.

The company would not disclose its list of third-party partners, but they collectively operate more than 9,000 aircraft flying tens of thousands of routes. Since inception, Flewber has contracted with 131 third-party operators, but it used just 13 in the first quarter of 2023 and 68 in 2022.

Flewber Luxe, the firm’s brokerage division, is its core revenue driver. Through 2022, it had a user base of 600 and accepted 104 bookings, with annual revenue increasing more than 150 percent over the previous year.

Luxe is Flewber’s premium service for users that prefer not to book directly. Customers on average pay $41,000 for brokerage bookings, and through a concierge service, they can arrange in-flight catering, ground transportation, restaurant reservations, and more. The company is looking to increase partnerships with commercial airlines, hotels, restaurants, and other businesses to offer additional customer service.

The Flewber App, on the other hand, is free to download and use, but the segment did not generate any revenue in Q1 2023. Per the SEC filing, flights booked on the app “have been minimal” despite it having 13,000 downloads as of Tuesday. On average, customers pay $13,600 per booking, and they do not have to pay a brokerage fee.

The app’s core feature is its Book, Bid, or Share service that lets users secure flights in a variety of ways. They can book by simply entering departure or destination information to see available flights, or they can find friends, family members, or colleagues with whom they can split the cost of a private charter.

Users can also bid on flights but not in the way one might think. Rather than bidding increasing amounts, users bid down the price offered to them by Flewber. The firm says it enables this through a marketplace that connects users with third-party aircraft flying either empty or repositioning legs, which it claims drives down the payment operators are willing to accept.

Flewber says the app offers flights from around 430 major airports and nearly 5,100 local and regional airports, all through Part 135-compliant aircraft and operators. Departure time and location and arrival location are negotiated directly by the customer or their representative.

The app does have a few key limitations that rideshare services do not, most notably that bookings must be made during normal hours of operation, which can vary by operator. Flights are also limited to one hour in duration or less.

However, Flewber believes its true challenge to rideshare will be Flewber Hops, an air taxi service it plans to launch before the end of Q3 2023. 

The company hopes to fly four-passenger flights lasting 15 minutes to an hour for $199 to $699 per seat. These local and regional trips between 30 and 300 sm (26 and 260 nm) will initially launch in the U.S. Northeast, encompassing cities such as New York, Boston, Philadelphia, Baltimore, and Washington, D.C..

Importantly, Hops will not rely on third-party operators—rather, Flewber will run the service entirely with its own aircraft operated by Ponderosa Air, a subsidiary acquired in 2018 that has FAA authorization for air taxi operations. The company is expanding its FAA certification and air taxi management team to enable Hops’ entry into service.

Hops is not an air taxi service in the modern sense. Unlike firms such as Joby and Archer Aviation, Flewber will not operate electric vertical takeoff and landing (eVTOL) aircraft. Instead, it plans to purchase two Cirrus SF50 Vision Jets before the end of the year, one of which will cost $3.1 million. The expected fee for the other jet was not disclosed.

However, Hops is certainly a play for the urban air mobility market that eVTOL aircraft are expected to occupy. According to Flewber, flying small jets will help the company beat eVTOL operators to market and eat up demand for short, regional flights.

Flewber’s $498,422 in revenue in Q1 2023 came entirely from Luxe, which averaged around $31,000 in revenue over 16 flight legs. It posted a net loss of around $485,000. Revenue for the quarter shrunk nearly two-thirds compared to Q1 2022, largely due to a decline in repeat users, which accounted for 60 percent of bookings from the start of 2022 through May 2023.

Luxe was also Flewber’s catalyst in 2022, accounting for $4.23 million of its $4.27 million in annual revenue.

In addition to heavy reliance on Luxe, Flewber in its SEC filing acknowledged that its reliance on third-party operators may hamper its control of delays and cancellations, which could impact revenue down the line. It also noted that it does not have exclusive agreements with its partners, which could limit the pool of private operators it can use should competitors sign such deals.

However, the firm has about $170,000 in cash on hand as of Q1 2023, and it expects the proceeds from its IPO filing will fund operations for the following 12 months.

The post On-Demand Private Jet Charter Company Flewber Global Files for U.S. IPO appeared first on FLYING Magazine.

Soaring over Westchester County Airport (KHPN) in White Plains, New York, was Beta Technologies’ ALIA-250 eVTOL aircraft, part of a flight test between Beta and partner Blade Air Mobility (NASDAQ: BLDE) as the latter looks to transition to an air taxi service.

But those aircraft are still a few years away from entering service. In the meantime, Blade is focused on the here and now. The company last week released financials for the first quarter of 2023 that reflected solid growth in its medical transport services—and a potential runway for growth in chartered, passenger-carrying helicopter services.

“We are making exceptional progress on all fronts, resulting in our seventh consecutive quarter with financial results ahead of our expectations,” Blade CEO Rob Wiesenthal said in a statement.

Blade’s total first-quarter revenue was $45.3 million. That’s an increase of 70 percent year over year attributable mostly to its MediMobility Organ Transplant service, which received a massive boost after the firm’s 2021 acquisition of Trinity Air Medical.

The company’s medical segment brought in $26.8 million for the quarter, rising 111 percent annually and 24 percent over the previous quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), meanwhile, rose from just less than $1 million last year to around $1.9 million this quarter. It attributed those gains to new hospital wins, growth with existing clients, and market factors.

Specifically, Blade sees tailwinds from organ preservation technology, which will increase the number of organs available for transplant and the distance they can travel—and, by extension, Blade’s revenue per mission.

“We continue to demonstrate our unique value proposition in medical through the addition of new customers, while supporting added volume and transport distances amongst our existing customer base,” Wiesenthal said.

In April, for example, Blade delivered lungs from organ donors in Alaska to recipients on the East and West coasts, something it said wouldn’t have been possible a few years ago. Because of those factors, the company told shareholders it expects the segment to see continued sequential growth.

Medical was also the main driver of Blade’s flight profit. Rising 145 percent year over year to $7.2 million, the figure outpaced growth in revenue and adjusted corporate expense, which improved the firm’s adjusted EBITDA margin by nearly 1,200 basis points. That means its operating profit is rising as a percentage of revenue, which bodes well for future growth.

“We expect this trend to continue in the coming quarters, resulting in year-over-year adjusted EBITDA improvement through the balance of the year,” said Blade CFO Will Heyburn. “Our resilient, flexible, and diversified business model, coupled with our strong liquidity position, puts us in a unique position to thrive in any macroenvironment.”

While MediMobility rakes it in, the firm’s passenger segment has experienced less success. It saw revenue growth of 32.6 percent annually to $18.5 million, with seats flown also rising 54.4 percent. But these trips have a lower margin than the firm’s medical deliveries, which widened the segment’s adjusted EBITDA loss slightly to $3.1 million.

According to the company’s first-quarter shareholder letter, losses were primarily the result of its Blade Europe segment, launched last year. Its performance was slightly weaker than anticipated, owing to poor weather, longer-than-expected delays in aircraft maintenance, and an unusually warm winter ski season.

However, Blade said it will have plenty of capacity for Europe’s upcoming peak season. It also launched a new by-the-seat helicopter service and marketing campaign that it expects will expand trip volume in the region.

Losses in the passenger segment were also due in part to a 17.2 percent decline in revenue in the Jet and Other segment, which focuses on long-range flights. But Blade saw that coming following a normalization in jet charter volume, and the losses were partially offset by growth in the Canadian business segment, which enjoyed revenue growth of 65 percent annually.

While the passenger business is still not profitable, there are a few promising growth indicators. Blade’s revenue from short-distance trips grew a whopping 148 percent yearly, mainly because of the firm’s acquisitions in Europe and revenue growth in Canada.

But another key factor was Blade Airport, the company’s helicopter charter service that flies passengers between two “lounges” at existing heliports in Manhattan and nearby airports. The service saw 96 percent year-over-year revenue growth, a 70 percent rise in seats flown and a double-digit increase in average revenue per seat.

That’s crucial because Blade Airport is the company’s self-described “most accessible” offering, with tickets starting at $195. It’s Blade’s “big bet” for customer acquisition, and encouragingly, the Airport segment saw a 46 percent increase in first-time passengers this quarter. The firm is also selling more premium subscriptions for the service, and it expects growth to continue.

“In [the passenger segment], our No. 1 focus remains driving the business to profitability, providing our investors with an asset-light, manufacturer-agnostic play on urban air mobility that is without peer and well-positioned to generate free cash flow, while standing ready to benefit from broader adoption with the commercialization of electric vertical aircraft,” Wiesenthal explained.

Looking ahead, Blade at the end of the first quarter had about $176 million in cash, cash equivalents and short-term investments on hand. The company considers its liquidity position to be strong and is looking to use it.

“We remain confident in our tangible and forthcoming path to profitability, and as a result, we continue to expect that a significant amount of this liquidity will be available for strategic acquisitions,” Wiesenthal wrote to shareholders.

The firm is also encouraged by acting FAA Administrator Billy Nolen’s recent comments about the air taxi industry, which the agency will support with new plans, guidelines, and standards. After Nolen departs this summer, Blade expects his successor to pick up where he left off.

Still, the firm will need to wait on certification of Beta’s ALIA-250—and any other aircraft it plans to use—before launching air taxis. But for now the company is focused on today.

“While EVA will enable exponential growth and enhance our return profile, we are not waiting idly for their arrival,” wrote Wiesenthal. “Instead, we remain laser-focused on deploying our capital in a manner that generates attractive returns today, while increasing the long-term intrinsic value of our business for the future.”

The post Blade Air Mobility Sees Growth in Medical, Stagnation in Passenger Services appeared first on FLYING Magazine.

The deal is valued at $3.1 billion, which the company says is nearly 11 times (10.8X) than the $288 million adjusted earnings expected for 2022. When the deal closes, the Ohio-based company said it would use the proceeds to continue growing its fleet and operational footprint, which includes MRO facilities and a private terminal.

Excited to share, #Flexjet a global leader in subscription-based private aviation, is going public. See the vision for the next chapter. https://t.co/scVEqed3XC

— Flexjet (@Flexjet) October 11, 2022

• READ MORE: The Aviation Business Trend of 2021? SPAC Mania

Kenneth Ricci, chairman of Flexjet, said in a statement that his company’s profitability would serve as a “launch pad to accelerate our growth,” and that Flexjet was “making this decision at a time when we believe the marketplace is expanding at a more aggressive rate.”

Flexjet’s ‘Accelerated Growth’

Flexjet has seen significant growth this year. Even amid talks of an economic slowdown, potentially reducing business aviation traffic—and a broad trend of companies that went public via SPACs struggling to appeal to investors—the company remains on track. 

• READ MORE: Update: What Would a Recession Mean for Aviation?

In April, Flexjet said it would hire 350 pilots to fly the 50 new jets it will add to its fleet this year, which will stand at 254 by year’s end. It partnered with GE Digital Maintenance in May to improve its flight data and predictive maintenance capabilities. In June, by acquiring the Associated Aircraft Group (AAG), Flexjet launched a private helicopter division to offer complimentary helicopter hours—using Sikorsky S-76 helicopters—to its Gulfstream G650 fractional owners.

On the pilot side, the company is known for its “Dedicated Crew,” a unique pilot operating model that assigns pilots to a specific tail number. As pilots have flocked to the airlines as compared to Part 135 operators, Flexjet says it has been able to attract and retain pilots. Its average new-hire pilot has more than twice the flight hour minimum required for application. 

The company says 36 percent of its 1,000 non-union pilots have been with it for more than 15 years. 

Preservation of #Flexjet culture is a priority in this next chapter and is a key focus among our 3100+ employees. pic.twitter.com/FtpjSFx9GZ

— Flexjet (@Flexjet) October 11, 2022

More broadly, Flexjet employs more than 3,100 people globally, including 450 certificated maintenance technicians across nine locations in the U.S., United Kingdom, and Italy. To minimize extended aircraft-on-ground situations, it also has a network of 20 mobile maintenance support units in the U.S. and a network of partner facilities across the globe.

The company’s fleet includes 142 super-midsize, large-cabin, and ultralong-range jets. The company is seen as the rival to its neighboring Ohio counterpart, NetJets, which has a much bigger fleet, with more than 750 jets.

What Does Flexjet Offer?

The company provides various marketing solutions and branded storefronts to service private and business jet operators. Customers can leverage fractional jet ownership and private leasing through the flagship brand, Flexjet. Through its Sentient Jet storefront, there are jet cards for customers needing fixed hourly rates. Its FXAIR and PrivateFly brands offer on-demand charter programs, and Sirio focuses on full aircraft ownership. Collectively, Flexjet says its subscription-based recurring revenue model has provided predictable revenue and cash flow, which is a metric the company is betting public investors will desire.

• READ MORE: Best Charter Jet Service for Your Next Getaway

“Having capital and currency will position us to expand market share at an accelerated pace in an opportunistic environment,” Ricci said.

The company says its clients stem from a customer base of ultra-high-net-worth individuals and Fortune 500 corporations that make up approximately 10,000 contracts. Moreover, the company says it has maintained a 97 percent retention rate of members and that more than a third of its fractional customers—35 percent—have more than a decade’s long account. The company has undoubtedly benefited from the switch that travelers are making to private and business jet travel, especially following the pandemic—it says 55 percent of customers have been members for more than five years.

Terms of the Deal

Business-wise, Flexjet told investors via its presentation that in 2021, its revenue grew to $1.72 billion and is expected to reach $2.3 billion this year. Its 2019 adjusted earnings were $97 million, meaning the company could nearly triple that this year if it meets its $288 million projections.

Serial entrepreneur Todd Boehly will commit up to $300 million from his Eldrige Industries company to backstop the deal. Boehly co-owns a range of entertainment brands, and sports teams, including the Los Angeles Lakers, Los Angeles Dodgers, and the Chelsea Football Club, 

Boehly, CEO, CFO, and chairman of Horizon—the SPAC—said, “I’ve known Kenn and the team for nearly a decade. Their ability to profitably grow Flexjet to what is estimated to be over $2 billion in revenue through an unrivaled product offering and desirable subscription-based business model sets the team apart.”

The post Flexjet Plans SPAC IPO Valued at $3.1 Billion appeared first on FLYING Magazine.