The Next XOJet With Smaller Airplanes - 100 Phenoms

[johnsonrod]

I just posted this on the 135 board as well. Sounds like an interesting concept with Phenom 100s as well as options for Phenom 300s with deliveries beginning in early 2009. Obviously the price point for owners is similar to those of Avantair owners until the Phenom 300s arrive later. Looks like it will initially be operated on the West Coast. Could be a good opportunity for pilots (especially those Flexjet pilots who want a domicile west of Denver)... Former Jet Blue principals involved. Check out the website at the bottom.


Former JetBlue Principals Unveil JetSuite, a New Model for Private Jet Ownership and Charter
Monday April 21, 4:14 pm ET

With Up to 100 Embraer Phenom Jets On Order, JetSuite Is Now Selling Aircraft for Delivery in Early 2009

LAS VEGAS, April 21, 2008 (PRIME NEWSWIRE) -- A cadre of senior management from airlines that changed the rules in commercial aviation are now expecting to change the way people own and operate private jets. Through JetSuite, private jet owners can fly their planes whenever they want and yet still receive $25,000 per month in return for allowing the company to charter the aircraft out to others during any downtime.

JetSuite was founded by Alex Wilcox, one of the founding team members at JetBlue Airways. The company has agreed to purchase 50 Embraer Phenom 100 very light jets on firm order and an additional 50 Phenom aircraft family options. With the 100 jet aircraft order, JetSuite is both the largest U.S. customer for the Embraer jet and the only operator currently planning to serve the West Coast with it once it obtains the necessary government approvals.
The Phenom 100 offers spacious comfort, superb performance and the latest technology. The jet's interior, designed by BMW Group DesignWorksUSA, boasts the largest cabin, windows and baggage compartment in its class. With a range of up to 1,160 nm, short runway capabilities, speeds up to 380 knots and a cruising altitude of 41,000 ft., the Phenom 100's performance is best-in-class.

``We're taking the hassle, expense and surprises out of private jet ownership,'' said JetSuite President Alex Wilcox. ``By looking after owners' regulatory requirements, aircraft maintenance, hangar facilities, and even hiring and training their pilots, their aircraft is prepared for flight whenever they want it -- but it also generates a guaranteed positive cash flow of $25,000 for them each month even if they don't use it themselves. What's more, with the Phenom, you get all the comfort with less than half the fuel burn of the most popular charter aircraft.''

Mr. Wilcox was a founding member of JetBlue Airways from 1998 to 2004 and then founding President and COO of Kingfisher Airlines (India) from 2004 to 2005. Prior to that, he held various positions at Virgin Atlantic Airways, Southwest Airlines, and Piedmont Airlines.

He's joined by several former JetBlue founding colleagues, including Usto Schulz, JetSuite's Vice President Certification and Safety, who was Vice President, Safety for JetBlue and was with the Federal Aviation Administration for 17 years, and Amy Curtis-McIntyre, former Vice President of Marketing at JetBlue who is consulting on JetSuite's brand and product. Also, Ken Burnham, former Fleet Captain for the DC-10 at United Airlines, has joined JetSuite as Vice President, Flight Operations.
For more information, please visit http://www.jetsuite.com, or call (866) 779-7770.

 

[Diesel]

their aircraft is prepared for flight whenever they want it -- but it also generates a guaranteed positive cash flow of $25,000 for them each month even if they don't use it themselves.

nothing is ever guaranteed in aviation. NOTHING

 

[johnsonrod]

It also says "positive" cash flow. So, does that mean above and beyond the owner's monthly debt payments and JetSuite-related costs? Minimum of $300K per year could certainly help with paying down your original financing costs. Plus, as an owner you keep the interest expense and depreciation expense - both tax shields.

Sounds like a pretty good deal for an owner relative to more traditional fractional programs that don't provide charter revenue for the use of "their" airplanes... That's a big difference. You don't see existing Netjets owners benefiting from the Marquis Card - right?

The Phenom 100 looks like a fun airplane to fly too:

http://www.embraerexecutivejets.com/english/content/aircraft/phenom100_cockpit.asp

 

[captain dad]

RTS really needs to focus a lot more attention on the West Coast.

Perhaps that is the plan for the 16 more Beechjets (Hawker 400), 17 encore+, 8 XLS, etc...(net gain of 50) that we are getting this year.

All I know is there is a whole lot of money out West.

I love this job!

 

[johnsonrod]

RTS really needs to focus a lot more attention on the West Coast.

Perhaps that is the plan for the 16 more Beechjets (Hawker 400), 17 encore+, 8 XLS, etc...(net gain of 50) that we are getting this year.

All I know is there is a whole lot of money out West.

I love this job!

It will be interesting to see how well Jetsuite will do. I agree that the market in the West is pretty strong. Clearly there are more people out there who could afford cheaper airplanes than more expensive airplanes but interest in a Phenom 100/300 will largely depend upon mission profile. If someone needs to fly frequently to the East Coast, a Phenom would not work - a share in a Citation X or G200 would work better. Netjets or XOJet would be better options. But if short hops around the Southwest (VNY-LAS-CRQ-SDL-PSP-SFO-RNO, etc.) were more common and the loads didn't exceed 4 people, maybe a Phenom 100 would be a better deal.

You could buy an entire Phenom 100 for a 1/4 Sovereign share or 1/2 of a CJ3 share (roughly). When you add accelerated depreciation, interest expense deductions and a minimum of $25K/mo in charter revenue for a relatively cheap airplane (and no variable costs), it looks like a pretty good deal. Of course, you'll have to overcome the lack of name recognition. Both Avantair and FLOPS will be operating Phenom 100s and 300s in the next few years.

I wonder where the proposed initial pilot domiciles will be located - LAS? LAX? PHX?

 

[Whale Rider]

XOJets getting the Eclipse not Phenome. Get the story right will you!

 

[ozpilot]

You don't see existing Netjets owners benefiting from the Marquis Card - right?

Common misconception. Marguis is the single largest owner at Netjets. Yes Marquis fly on owners aircraft but owners also fly on Marquis jets.

 

[captain dad]

XOJets getting the Eclipse not Phenome. Get the story right will you!

We're not talking about XOJet. We are talking about Jetsuite.

http://www.jetsuite.net/

It is more like a Dayjet type of model. The range is extremely limited. It is like a regional fractional.uke: Sorry, I just made a conection between airlines and fractionals and I threw up a little in my mouth.

 

[On Your Six]

Here's the latest info from AIN Online with some clarification. Looks like initial bases will be LA and Las Vegas:

Former JetBlue Execs Embrace Business Aviation
[FONT=Verdana, Arial, Helvetica, sans-serif]A group of former JetBlue executives this week launched an operation designed around the Embraer Phenom 100. The company, JetSuite, placed a firm order for 50 of the very light jets with options for 50 more, and it plans to lease the aircraft to customers. First deliveries are expected in April next year. The company also applied for a Part 135 certificate and expects to launch charter services from bases in Las Vegas and Los Angeles, pending final government approval. Company president Alex Wilcox was a founding director of JetBlue Airways, a position he held from 1998 to 2004, and then served as president and COO of Kingfisher Airlines from 2004 to 2005. Usto Schulz, JetSuite’s vice president of certification and safety, served as vice president of safety for JetBlue, and Amy Curtis-McIntyre, former vice president of marketing at JetBlue, will serve as a consultant on JetSuite’s brand and product.[/FONT]

 

[Whale Rider]

We're not talking about XOJet. We are talking about Jetsuite.

http://www.jetsuite.net/

It is more like a Dayjet type of model. The range is extremely limited. It is like a regional fractional.uke: Sorry, I just made a conection between airlines and fractionals and I threw up a little in my mouth.

Too bad you have no sense of humor or are you just clueless? Just Curious.