Are you interested in private jet ownership, but frustrated with the skyrocketing costs of jet maintenance and ownership? If so, then JetSuite might be the solution for you.
All kidding aside – JetSuite is a new airline that’s taking a different approach to the luxury air travel market. The company has contracted to purchase fifty Embraer Phenom 100 Very Light Jets (VLJs) to use as part of an exclusive private jet fleet. The innovation here is that JetSuite aims to pass ownership of its fleet onto the public. The company is re-selling its fleet to individuals who would like the freedom and luxury of private jet ownership but are looking for a little help with the costs associated with said ownership. Basically, if you’re willing to pay for the Embraer Phenom 100 VLJ (est. starting price of $2.98 million), JetSuites will pay you $25,000 per month to rent it from you when you’re not using it. JetSuites will then operate a traditional private airline business using its rented fleet (similar to NetJets). The company was founded by Alex Wilcox, one of the founding team members of JetBlue Airways. Wilcox is taking his airline game-changing history and applying it to a different market segment (those looking for private jet travel as opposed to those looking for cheap flights to Miami).
What we really like about this company is the business model behind it. JetSuite offsets the upfront cost (and risk) of purchasing a fleet of VLJs, and those who are in the market for a personal VLJ can offset their recurring costs by becoming part of the JetSuite fleet. While the transaction might still be risky for the VLJ owner (that $25,000 monthly payment is only good for as long as JetSuite is in business, after all), for individuals who would have purchased the jet regardless, this is a substantial cost savings.