The rich are getting richer. Commercial airline service is getting worse as is the airport experience. Yet today, you can at least get a taste of the private aviation experience for as little as $59, albeit on an airplane with seating that more closely resembles the type of regional jet you find flying with the regular airlines. However, you do bypass the commercial airport terminals, showing up for your flight just 15 minutes before departure and you’ll be on your way within five minutes of landing.
It wasn’t always this way. For a long time the private aviation industry was considered staid with not a lot of options. Back in the late last century, it was commercial aviation that was a petri dish of new ideas. Remember People Express, Midwest Express, Legend, MGM Grand Air, New York Air, Air Florida, Southwest Airlines and others. Now, with the domestic U.S. commercial market being strangled by a few mega carriers that control over 80% of the market, innovation is coming from the private aviation sector.
The interior of a new Netjets Inc. Embraer Phenom 300 jet is seen in the Signature Fight Services… [+]
In the late ‘90s Richard Santulli, with the backing of Warren Buffett and Berkshire Hathaway, made fractional ownership and NetJets required jargon at upper end country clubs and board meetings. By selling shares in planes instead of the entire aircraft, it meant a person worth $50 million could now afford to buy a 1/16th share in a $35 million Gulfstream 450 for several million dollars upfront, possibly financed. Once only the purview of billionaires and Fortune 500 CEOs, smaller companies and entry level Ultra High Net Worth (UHNW) individuals could tool around on luxury private jets of all sizes and prices.
In the early part of this decade, the smart money was on the concept of the air taxi, which was being propelled by a new generation of smaller private jets, today referred to as VLJs, or Very Light Jets. Former American Airlines chairman Robert Crandall and People Express founder Donald Burr backed a venture called Pogo that never got off the ground. Another, called, DayJet, foundered at birth. The symbol of VLJs, the Eclipse, sans toilet, is no longer in production although Embraer, Cessna, HondaJet and others have refined the concept into a niche with staying power. However, the air taxi concept never took off.
In the past 10 years, jet cards have become the soup du jour. Over 50% of the more than 25 providers tracked by Private Jet Card Comparisons, a website I started as an offshoot of research I did writing stories about private aviation for Forbes.com, are new to the jet card market in the past decade. And while jet cards reduced the entry point of regular private jet travel to $50,000 or $100,000 per year, entrants like Surf Air pushed it down to about $20,000 through its Netflix-like monthly membership model. JetSmarter with its shuttles and empty legs dragged the price of entry down to $5,000 per year and more recently JetSuiteX, an off-shoot of JetSuite, enables you to get a taste of how the upper half of the one percent does it for as little as $59 per flight.
So how rich do you have to be to fly privately? Below is a quick overview of various private jet travel options and what type of bank account you will need.
Private Aviation Scheduled Flights and Shuttles
How rich do you have to be?
JetSuiteX promotional fares have been as low as $59, although from Burbank to Concord, California, flights in August are priced between $100 and $200. Tradewind Aviation also sells you seats. A one-way flight from Westchester County, New York to Nantucket in August priced out at $858 for 57 minutes. Its network connects mainly leisure destinations in Massachusetts and Vermont with Boston and the New York area. It also operates shuttles in the Caribbean.
What can I expect?
Private Shuttles are best described as scheduled flights that use private jet facilities, usually FBOs (private jet terminals) or private hangars at the airports they serve with various aircraft types.
Examples would be Surf Air in California, Texas and Europe, JetSuiteX in the Western U.S., and Tradewind Aviation, in the Northeast U.S. and Caribbean, each of which appeals to a mix of business and leisure travelers. While Surf Air uses a membership model where you pay a monthly fee (think $1,500 to $4,000 per month) and you fly as much as you want, and the latter two sell individual seats on each flight, you are basically buying a seat on a flight shared with other passengers. You show up 15 minutes before your flight and you have a quick exit when you get off. The main benefit is for short flights you cut out the time spent in commercial airports. The seating is akin to what you find in regional airlines, something moderately better than economy class, so hold your dreams of a Trumpian Boeing 757.
Another pioneer with the shuttle concept is JetSmarter, which uses actual private jets for its services. The JetSmarter shuttles are open to members. There are different membership tiers (from $5,000 to $50,000), with high paying members accessing shuttles for free and lower paying members having to pay surcharges for some shuttles. The JetSmarter Shuttles operate in the U.S., Europe and the Middle East and include routes such as New York-London and Los Angeles-New York, however, these shuttles only operate a couple times a week. Depending on your membership level, shuttles with surcharges can range from several hundred dollars to thousands of dollars per seat, but you can also pick free shuttle flights. You’ll also find that a private jet filled to capacity means playing footsie with the person in the club seat across from you and perhaps sitting on a couch instead of a real seat for three to five hours. Again, the main benefits are avoiding airports and being able to post pictures to Instagram that make your friends who haven’t flown privately jealous.
Empty Legs
How rich do I have to be?
Be ready to spend at least several thousand dollars, although JetSuite offers SuiteDeals the night before for as little as $500.
What should I expect?
Empty legs are ferry flights where a private jet is being flown back to its base after dropping off a revenue charter passenger or flying empty to pick up a revenue charter passenger. Operators often sell these flights at a discount, however, they are not a reliable way to fly if you need to get somewhere. If the revenue passenger changes his or her plans, your empty leg will get canceled and in most cases, you will need to find an alternate way to your destination at your own expense. Most charter operators and brokers promote empty legs on their websites, you can sign-up to receive alerts, and you can find empty legs being promoted on Twitter and Instagram. If you belong to programs from Wheels Up, Jet Linx Aviation or Delta Private Jets, you may also find insider deals offered to members first.
JetSmarter members also get free seats (but not the entire plane) on empty legs as a benefit membership benefit. They simply scan the company’s App to see empty legs as they are posted and click to book seats. However, there are cancellation penalties, so while JetSmarter can cancel your empty leg, it will cost you to do the same. Still, for even the lower priced $5,000 and $15,000 memberships, if you are flexible, you can literally rack up dozens of private flights. Success rates (empty legs booked and you actually fly on, that aren’t canceled) range from 25% to 80% based on various reports.
Seat Sharing
How rich do I have to be?
You are probably worth at least $1-$10 million or more
What should I expect?
Some private aviation operators, including Wheels Up and brokers like JetSmarter, have created apps allowing you to sell seats to other customers after you have booked your flights, thus offsetting some of your expenses. For a Wheels Up customer with four members splitting a KingAir 350i for a two-hour flight, each pay about $2,200. Of course, you would have already paid a membership fee of approximately $17,500 to join and are paying hourly rates of over $4,000 when you fly on your own. JetSmarter just launched its SHAREDCHARTER program. You need to have a membership that will cost you $15,000, and as an example, a seat on a flight from Ft. Lauderdale to Napa, California one-way would cost you $3,723.
On-Demand Charter
How rich do I have to be?
You need to be able to pay at least several thousand dollars even for a one-hour hop, but the reality is you will be laying out $15,000 to $30,000 for a weekend round trip of two hours each way depending on aircraft size. You get a better deal for what private aviation defines as a round trip, which means that you are returning soon enough that the plane that took you where you are going, can wait and bring you back.
What should I expect?
On-demand charter simply refers to working with a broker or operator to charter an entire private jet based on your schedule and needs. The only other people on the plane besides pilots and possibly a flight attendant is you and whoever you invite. You enter into a contract for the charter. Depending on the type of plane, where you are going and for how long costs vary widely. You will be charged for flying the plane back to its base if you are staying for awhile. Hourly rates range from around $3,000 to over $15,000. You’ll need to read your contract closely beyond the hourly rate. Things like de-icing or a diversion because of weather are generally at your expense, as are a myriad of various fees and catering. If you are chartering a managed plane, meaning the operator is managing the aircraft for a third party owner, the owner may also have the right to pull back his or her jet with as little as 24 to 48 hours notice leaving you and your broker scrambling to come up with a new plane.
Jet Cards
How rich do I have to be?
$10 million + Net Worth
What should I expect?
Jet cards are a way to prepay for a fixed dollar amount or number of hours of private jet travel. The more hours you buy or dollars you prepay, the lower your hourly rate. Jet cards are an effective way of budgeting for private air travel and take away the time and hassles of having to quote pricing for every trip individually. Many programs also guarantee availability. They also generally have service recovery programs that guarantee a replacement aircraft if the original plane can’t make the flight. Most programs have one-way pricing, so you aren’t stuck with ferry fees. By buying into a program, you are also guaranteed certain standards of service, performance, as well as sourcing of the planes and pilots you will fly with. The rules and policies of each jet card program vary widely from pricing to surcharges, lead time to make reservations, cancellation policies, the number of peak days which often have surcharges and longer lead times to book your flight. You really need to map out the trips you are planning to take in as much detail as possible to figure out the best program for your needs.
Fractional Ownership
You typically have a net worth of at least $25 million
What should I expect?
You are buying into a depreciating asset, so at the end of your agreement, you will get some money back based on the resale value of the aircraft you purchased. In the meantime, you will get access to a fleet of private aircraft purchased in shares by other people and companies like you. The smallest share is typically 1/16th and it will get you 50 hours of flying per year. The biggest player by far is NetJets. Others include Flexjet, Nicholas Air and PlaneSense, which uses the single engine Pilatus PC-12 turboprop as its bread and butter aircraft. You will have a guaranteed hourly rate in your service area, but you will also share with other owners a monthly management fee. You will get guaranteed access with specified lead times, and for the most part, you will be flying from a fixed pool aircraft, probably configured and decorated in a similar way. You’ll also get invites to VIP Super Bowl parties, exclusive concerts and find yourself with access to private lounges at events like Art Basel. Depending on how big a share and what type of airplane, figure spending in the hundreds of thousands to more than $20 million to purchase your share.
What’s best for me?
It might surprise you many owners of private jets also buy jet cards, charter, fly with the likes of Surf Air and JetSmarter or even own fractional shares. They fly commercially too.
Why?
You might have a light jet, but a new business means you now have to travel cross country every week for the next 18 months and you want to fly nonstop, so you buy a jet card with access to larger jets that can fly nonstop. It could also be that your spouse is often meeting you at a third home coming from a different direction, and since you are using the jet you own, you buy a jet card for your partner so he or she will arrive refreshed and relaxed. For the same reason, you might charter.
For international long-haul flights, and even on mainline routes like JFK to LAX, it’s not unusual to see private aviation users traveling commercially. Flying from the U.S. to Europe on a private jet can easily range from $75,000 to $100,000 one-way versus $7,500 for first class, while a private flight from New York to Los Angeles might run $30,000 compared to $2,500 in first class on American Airlines, where they offer a VIP check-in which reduces airport hassles and flat bed seats that are as comfortable as most private jets.
If you have a net worth of $20 million or more, the $15,000 JetSmarter membership level gives you broad access to its shuttles and empty legs, and all things being relative, a $15,000 membership equates to spending $375 for somebody worth $500,000, so not the end of the world. If you talk to regular private jet users, they will tell you to think of it like cars in a driveway. One is usually not enough. The good news is you don’t have to be a Brin or Zuckerberg to afford to dip your toes into the private aviation experience.