Is XOJet killing your business?

[fob727]

It was a legit question. I'm not interested in a pi$$ing contest.

 

[gulfstream2345]

Charter rates

Posted charter rates are far from the final price and don't usually reflect the real hourly costs. I just started a new 135 operation with a single Hawker 400XP and if you check the Charter Guide for comparable rates you will find quotes hourly rates from about $2000-2500/hr.

Those are usually the "quoted" hourly rates. The final price will include any landing fees, Federal Excise Tax, any pilot expenses for overnights, catering, fuel surcharges, etc. Add all those up and the actual costs per hour far exceed a $2000-2500/per hr. rate.

We have to compete with everyone else and the only way we can do that is keep our expenses low, provide a spotlessly clean aircraft, have the pilots dress like professionals with shined shoes, pressed shirts and hair cuts and treat all the customers fairly. That way if we ever do get any clients then maybe we can keep them.

As far as what XO is doing, it is a free marketplace and there is no legal reason why they can't attract customers by doing a "loss leader" just like Wal-Mart does. If their pockets are deep enough then they will prevail. It is a tough time now and good luck to you all.

 

[bizjet800]

I don't think its XO Jet, I think its our economic depression that's killing most businesses.

 

[52Vincent]

XOJET guarantees lowest possible price, no need to shop!!

Found, this morning

SAN CARLOS, Calif.--(BUSINESS WIRE)--XOJET, the private aviation company that has led the way in offering flexible programs and streamlined pricing, announced it is introducing a first-of-its-kind program that guarantees customers the best possible price available for every trip. With XOJET’s Market Price Assurance TM, members can enjoy all of the benefits of being in a guaranteed-availability program and, at the same time, receive pricing advantages that can come with market-rate charter service.
“XOJET continues to set the standard for developing programs that bring flexibility, versatility and cost efficiency to the private aviation market,” said David Siegel, CEO of XOJET. “Market Price Assurance provides customers with not only guaranteed availability but a guaranteed best price for every trip. There’s no need to comparison shop, no need to deal with multiple brokers or operators and no need to risk quality, consistency or reliability. We’ve taken all of the guesswork out of the process.”
To take advantage of XOJET Market Price Assurance TM, customers purchase a Fleet Exchange Membership program, which begins at 50 hours, offers guaranteed availability without the restrictions or requirements of traditional fractional programs and is customized to reflect individual travel patterns and financial priorities. Then, for each trip, XOJET applies the lowest price; in some cases it could be charter pricing, in others it could be member pricing. If charter pricing is lower for a particular trip, the customer can use program hours to “pay” for the trip.
Because XOJET’s business model combines charter and membership programs, it is the only private aviation company that can credibly offer this type of service and provide customers with total assurance that they are receiving the best pricing possible. In addition, since XOJET does not outsource flights, members can be confident they will always fly on XOJET's own brand new fleet of jets, flown by XOJET crews and supported by an award-winning safety and operational infrastructure.

 

[H2OK9]

Boy! I wish I had all of you experts working for my company! whew! you guys are smart! OCR ad Jonjuan,,why are you guys pilots? you should get a job on NObama's cabinet! How can you possibly know the business model of XOJET? Heck, I'm not sure if I even know it! But I do know that I'm still flying 50 hours a month and our customers love us. This is still a Free economy! Should we rip on GM and Ford for offering to buy your new car back if you loose your job? That is unheard of in the auto biz. but it helps them sell cars...maybe they should have asked you first! Good Luck with your company but stop using this site as a punching bag for XOJET. I'm very happy and hope you all do well.

 

[brokeflyer]

you'll find that jonjaun and a few others have some developmental issue that haven't quite matured yet....

 

[[email protected]]

Is xojet getting any resumes for the middle east?

 

[tdwnds1]

I sent mine in, of course Ive had my application in for XO jet for over a year and a half.

 

[cherry20's]

I'm sure we are, how many??? I know there are around 7000 apps on file for state side ops... Keep updating them fellas. Took me a year after I applied, before the bottom fell out, but its well worth it!

 

[DUATS]

Boy! I wish I had all of you experts working for my company! whew! you guys are smart! OCR ad Jonjuan,,why are you guys pilots? you should get a job on NObama's cabinet! How can you possibly know the business model of XOJET? Heck, I'm not sure if I even know it! But I do know that I'm still flying 50 hours a month and our customers love us. This is still a Free economy! Should we rip on GM and Ford for offering to buy your new car back if you loose your job? That is unheard of in the auto biz. but it helps them sell cars...maybe they should have asked you first! Good Luck with your company but stop using this site as a punching bag for XOJET. I'm very happy and hope you all do well.

I don't know what business model they are using, but there are some choices:

1. "We'll lose money on every flight, but make it up on volume." Not going to work - see People Express.

2. "We'll keep the prices low until the competition goes out of business, then jack them right back up again." See Independence Air. NWA, UAL, and others lowered prices to match them, added new routes to compete - and they all went away before the ink on Independence Air's Chapter 11 was dry. Of course, it doesn't work if you run out of money first.

3. "We need cash now. Get those planes moving at any price." See Chrysler! Usually a short term sustaining mode, but not a recipe for long term success.

4. "We can sell at those prices if we assume that aircraft values will go up by 2011." No aircraft depreciation, no depreciation expense. Fine if it turns out to be true, although the accounting board might complain (see thread on Netjets loss due to aircraft writedowns)

So...IMO XOJet's pricing could work - if their financiers are patient and the market turns.

 

[Avpilot]

Is xojet getting any resumes for the middle east?

Sent mine in several days ago. I do not have the type rating, but am currently located in and have lots of experience in the ME as well as Europe, Africa, Asia, etc. I meet the mins for CA in Abu Dhabi. Any word on when they will start interviewing?

Tim

 

[cherry20's]

They kind of mentioned hiring 2-3 guys in the very near future to work there full time. Thats all I really know...

 

[fob727]

"They kind of mentioned" lol:beer:

 

[cherry20's]

We had a conference call yesterday and it was "kind of mentioned". They really didn't have any firm details yesterday is all I'm saying:beer:

 

[fob727]

Just joking