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JetSuite Expansion to the Northeast - Likely Impact on Fractionals?

johnsonrod

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First, I realize JetSuite is NOT a fractional. It does have a membership program and obviously the charter aspect competes with the fractional charter card programs. If you look at the pricing - it is pretty low. True that we are talking only 4 seats on the Phenom 100, but if the pricing remains, charter sales for the fractionals could be impacted I would think. If you are a family of 4 and you fly primarily within the NE (i.e., NY to Maine in the summer), why wouldn't this be appealing? If you have more than 4 people, you could probably charter 2 Phenoms for a "relatively" cheap amount compared to a midsized or large jet.

It does not surprise me that JetSuite is targeting the Northeast - that is the 1st or 2nd biggest market in the country. I would expect a big marketing campaign push. Notice they don't talk much about NE-Florida flying - is that because a full Phenom 100 can't make it nonstop? Clearly that would be the most popular flying on the East Coast - the NE-Florida route.

See press release below:



JETSUITE EXPANDS SERVICE TO THE NORTHEAST: REVOLUTIONARY WEB & MOBILE PRICING ANNOUNCED

Home » Press-releases » JETSUITE EXPANDS SERVICE TO THE NORTHEAST: REVOLUTIONARY WEB & MOBILE PRICING ANNOUNCED

IRVINE, CALIFORNIA (June 27, 2012) – JetSuite, the world’s most experienced Phenom operator, continues to expand with the announcement of new service in the Northeast and a revolutionary booking methodology offering guaranteed price quotes online. Since it’s 2006 fleet launch order for Embraer Phenoms, JetSuite now offers service to hundreds of airports throughout the Northeast’s major metropolitan areas such as New York, Washington D.C., Boston and Toronto
“Our mission is to make private air travel accessible to more people than ever before,” explains JetSuite CEO Alex Wilcox. “Expanding our services to the Northeast brings us to the biggest market in the world.”
With its national expansion, JetSuite will capture discerning private jet customers throughout the Northeast, adding service to hundreds of airports including Teterboro (TEB), Martha’s Vineyard (MVY), Bedford (BED) and Exclusively flying a fleet of brand-new Embraer Phenom 100s, JetSuite operates the most spacious, fuel-efficient jet in its class, allowing the company to offer some of the most competitive fares in the industry while maintaining the luxury and benefits of private air travel.
Timed with the Northeast expansion, JetSuite is also announcing a revolutionary booking methodology on their completely redesigned website, making it the first private aviation company in history to quote a price online - and guarantee it. The new Jetsuite.com website introduces an unprecedented level of transparency and consumer-friendliness to the world of private air travel, “de-mystifying private jet pricing once and for all,” Wilcox adds.
JetSuite offers three levels of membership at low, hourly rates (see table below) to which airport fees are added based on elements including local cost of fuel, fixed-base operator fees, government charges and the average cost of positioning to the airport. Consumers will be able to easily compare various fees on the new JetSuite.com to determine the best airports for their trips. JetSuite's lowest airport fees can be found at low cost airports in the Southwest and Northeast United States. As the company continues to grow, airport fees will go down in other areas.

In celebration of its Northeast expansion, JetSuite is offering special rates to and from some of the area’s top travel destinations this summer, bringing its rates to less than half the price of major competitors. Sample rates* for the entire 4 passenger jets include:

*all rates are one-way and based on a $50k JetSuite card purchase. Round-trip pricing can be even less.
JetSuite also continues to offer its popular SuiteDeals on its Facebook page, where select destinations and flights for the following day are offered at prices as low as $499 to the first fan that comments with a qualified booking request.
As other private jet companies continue to raise their rates, the relative value of JetSuite has never been greater for consumers, and JetSuite continues to lead the way with the most efficient private jet brand in the market.
For more information, visit www.jetsuite.com or www.facebook.com/JetSuiteAir
About JetSuite
Based in Southern California, JetSuite Air is redefining private aviation as the first and only private jet operator to exclusively offer a fleet of all-new Embraer Phenom 100 aircraft, the most fuel-efficient jet in its class. The company’s vision is to enable private air travel to more people than ever before through affordable, no obligation programs. Under the leadership of CEO Alex Wilcox, a former JetBlue founding executive, and guided by investors David Neeleman (JetBlue founder) and Tony Hsieh (Zappos CEO), JetSuite provides service from various SuiteSpots throughout the Southwest and elsewhere to and from airports in the United States, Canada and Mexico. JetSuite is rated Platinum by ARG/US, the highest possible safety rating in the private
jet industry. JetSuite was created in 2006 and first took flight in early 2009.
 

AftCG182

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They're moving into a crowded neighborhood. Avantair, along with PlaneSense have the short-hop market pretty well locked up.

The other three, longer-range Fracs have their markets pretty well covered, too. But, that doesn't really apply to the JetSuite expansion.

It'll be interesting to see how JetSuite makes out. Best of luck to them on their expansion!
 

brokeflyer

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you get what you pay for. i wouldnt shop around for the cheapest heart surgeon.

I have a friend there and he tells me it sucks.
 

LAZYB

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Check the numbers, I think you get 1 or no seats if you fill the fuel.
 

jetlag7

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What ever happened to the jet they crashed in Sedona month before last?
 

jetlag7

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You misunderstand the intent of my question 1900.

Working for a carrier that in the near future will be operating a derivative of the Phenom 100, I believe I have considerable motive to understanding what happened on that particular flight.

In lieu of anything substantial from the NTSB, I was hoping someone from JetSuite could shed some light.
 

ksu_aviator

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The 100 does not compete with most corporate jets. The companies that should worry are charter operators, especially KA90 operators. That is their real competitor. The 100 is seriously range and payload limited. It can only go 1100 miles if there are 3 or less people on it (including crew) and it goes down wind. Fully loaded, it can only go about 700 nm. But, it is cheaper, faster and more comfortable (best air conditioner ever!). It is also sexy and has great avionics. So it competes well against the 90 for short flights with few passengers.

The 300, on the other hand, has good range (San Fran to Pittsburgh or so) and good payload (7 pax and 500+ lbs of bags) and can go into shorter runways than the 100 (if the runway is wet). So will the 100 put a dent into NJA, Flex or Options? No. They don't compete in the same market.
 

jonjuan

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The 100 does not compete with most corporate jets. The companies that should worry are charter operators, especially KA90 operators. That is their real competitor. The 100 is seriously range and payload limited. It can only go 1100 miles if there are 3 or less people on it (including crew) and it goes down wind. Fully loaded, it can only go about 700 nm. But, it is cheaper, faster and more comfortable (best air conditioner ever!). It is also sexy and has great avionics. So it competes well against the 90 for short flights with few passengers.

The 300, on the other hand, has good range (San Fran to Pittsburgh or so) and good payload (7 pax and 500+ lbs of bags) and can go into shorter runways than the 100 (if the runway is wet). So will the 100 put a dent into NJA, Flex or Options? No. They don't compete in the same market.

You could make a similar argument about the P180. Does it compete in the same market? Hmmmmmmmm.....maybe not directly, however, it is marketed to pull fringe market share, ie. 15-20% overlap.
How many folks do you think would otherwise use a high cost frax BJ/LJ to fly TEB-Nantucket, East Hampton, or VT, 2-3 pax would now be interested in a new interiored, much lower cost alternative?
They won't take over, however, they will take market-share and will put downward pressure on revenues/profits.
 

ksu_aviator

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You could make a similar argument about the P180. Does it compete in the same market? Hmmmmmmmm.....maybe not directly, however, it is marketed to pull fringe market share, ie. 15-20% overlap.
How many folks do you think would otherwise use a high cost frax BJ/LJ to fly TEB-Nantucket, East Hampton, or VT, 2-3 pax would now be interested in a new interiored, much lower cost alternative?
They won't take over, however, they will take market-share and will put downward pressure on revenues/profits.

My understanding is that the King Air and VLJ market is less than 5% of the market and the 100 won't be taking any current business from the fracs, just from the charter operators already filling that market.
 

BentOver

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Just speculating, but I don't think a whole lot of NJA's business is based on those really short TEB-Nantucket flights... Of course they do them, and probably do alot compared to other operators.

But with NJA we're talking 2200+ revenue flights a week. Spread over a year those really short flights are most likely not even a blip on the radar... Just opinion though based on what I saw back a few years ago. And any business lost to a competitor is not good.
 

gret

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No disrespect to JetSuite, but if you have any concern about a start-up impacting your business, you probably have bigger issues that deserve your attention.
 

X-rated

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And any business lost to a competitor is not good.

It is if you would lose money if you flew it yourself.

I doubt any of the fractional managers would mind losing some of those high cost, low revenue short flights. Short flights are usually at low altitude and high fuel flow. You burn the crew, monopolized the airplane, and generate no profit, or worse. The Frac's have to accept those money losing flights because the owners have guaranteed availability, and they pay a flat hourly rate. I'm sure NJA would be thrilled if one of their GIV owners was willing to fly a 40 minute flight in someone else's Phenom 100. The problem is, none of them will want to.
 
Last edited:

gunfyter

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It is if you would lose money if you flew it yourself.

I doubt any of the fractional managers would mind losing some of those high cost, low revenue short flights. Short flights are usually at low altitude and high fuel flow. You burn the crew, monopolized the airplane, and generate no profit, or worse. The Frac's have to accept those money losing flights because the owners have guaranteed availability, and they pay a flat hourly rate. I'm sure NJA would be thrilled if one of their GIV owners was willing to fly a 40 minute flight in someone else's Phenom 100. The problem is, none of them will want to.
This is true...
 

Hawkered

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Where would they put their bags??
 

AftCG182

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I'm sure NJA would be thrilled if one of their GIV owners was willing to fly a 40 minute flight in someone else's Phenom 100. The problem is, none of them will want to.

They'll be doing it in one of our Piaggios...
 

cldsfr79

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I think Jet Suite would have little to no impact on the fractionals. Clients who fly on very small jets charter with them because either they don't have the capital for fractional ownership or don't fly enough to make ownership financially feasible. However, some fractional owners may utilize uplift from a company such as this when flying their own aircraft wouldn't make financial sense (i.e., 1 pax flying 200 miles in a Citation X).

Fractionals, at least NJA, are starting to shift away from entry level jets and are focusing on more lucrative mid and large cabin clients. You can tell by NJA orders of the last year.
 
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