XO Jet

[skiandsurf]

When all of our program members are using their airplanes, we raise our charter rates (simple supply and demand economics) as the charter availability goes down. On the days when our program flying is slow, we can lower rates and increase our outside charter availability.

So when the holidays roll around and everyone wants to fly, you take your planes off the market to be used for the owners. (supply and demand...the higher the demand, the higher the price,,,,,but your planes arent making money, they are flying owners on the high demand days).

 

[jonjuan]

They don't have to schedule 10 owners per plane. Just 4. Owners presumably don't get sold off during Christmas and Thanksgiving or spring break. They just dont do any charter flights then.

There are more than 4 owners per airplane. They also lease 100 hours of a plane (not charter), thereby placing more and more owners on a plane which drive up demand exponentially.

 

[flyipilot]

It would be like this:

I park my BMW at the airport 18 days per month it just sits there,

Instead, all these days I am away, I let Hertz rent out my car. They make money do the maintenance and when i return from my trip ... deliver my car to the FBO and i drive home.

In the XO profile ... they have solved they scheduling problem which everyone knows is the weak link in fractional... By changing the problem...

They don't have to schedule 10 owners per plane. Just 4. Owners presumably don't get sold off during Christmas and Thanksgiving or spring break. They just dont do any charter flights then.

If I own a BMW, I do not want it rented out. I do not need it rented out. A true airplane owner does not need or want his plane rented out to some cheap customer who can not afford to buy into my airplane and become an owner like me. You either have money or you think you have money. If you have it, you do not care if your plane sits and sits. I am not against XO Jets plan but, if I were a very profitable human being like all of NetJet owners are, I would in no way want my airplane "rented" out to just anyone. We manage aircraft, we do not charter them "rent" them. Huge difference.

 

[RTRHD]

We manage aircraft, we do not charter them "rent" them. Huge difference.

We don't? Yall making my head hurt.

 

[RTRHD]

We manage aircraft, we do not charter them "rent" them. Huge difference.

We don't? Yall are making my head hurt.

 

[X-rated]

And you would permit them to use your car for free??? You buy the car and they get the profits....I don't think so.

Jeez... read the post! They do share in the profit by the way of reduced costs. I flew one of our owners the other day who used to be a Netjets owner. According to him, he now pays less "all in" for the same number of hours in a X than he paid for an Excel at NJA.

Interesting that XO only allots 400 hrs/yr to owners in comparison to NetJet's 800/yr to full owners. It appears that charter is the majority of the business, otherwise the owners' usage would be greater than 50%.

It's actually split fairly evenly between owners, Fleet Exchange Lease, (read card if you must) and Charter.

 

[X-rated]

Trip from TEB to PBI is a charter, then a pickup at PBI back to TEB for an XO owner.

Charter trip shows up late, shocking i know.

Not just late but a couple of hours late.

What does XO jet ditch the charter? Ditch the owner?

Please don't tell me they send another XO jet plane there this isn't enough of them, yet.

So who gets screwed the owner or the charter?

Proportionally, we have a better plane to customer ratio than you do, so why would it be hard to believe we can recover our own trips?

Don't be ridiculous. nobody gets screwed or ditched. Hopefully, they would not schedule a trip like that, but if they did, they'd be looking at back up plans well in advance.

 

[jehtplane]

I care because I don't bury my head in the sand or wear blinders thinking my way is, and always will be, the best way. I am very open to someone showing me a new way of doing things. In short I am willing and teachable.

I'm really not slamming this guy, I just don't think what he is trying to achieve is maintainable. I think he is like most start up types; seeing what's on paper and thinking that's the way it works. Planes break, schedules change and ultimately compromises have to be made. The smaller and fewer planes you have, the bigger the hit to the bottom line. The numbers look great until you stop expanding and have to start paying the piper.

This guy is very openly taking shots at NJA, RTS, our business model and has stated he is trying to steal our customers. Your boss is the one trying to throw down. He has a good rap, but when you look below the surface I don't see his plan holding water. I could be wrong but I have some serious doubts.

If you disagree, which is perfectly OK, than convince me. That's all I am looking for.

Isn't every airline and every fractional trying to steal the others business???????????

You Netjet guys sure are touchy. Relax, you'll live longer. XOjet has found a niche, just like Netjets did, so why the bashing? Anytime any business does something that fits and works some tool is quick to try and bash it. I am not calling Captain Dad a tool, before this thread gets off track.

 

[X-rated]

If I own a BMW, I do not want it rented out. I do not need it rented out. A true airplane owner does not need or want his plane rented out to some cheap customer who can not afford to buy into my airplane and become an owner like me. You either have money or you think you have money. If you have it, you do not care if your plane sits and sits. I am not against XO Jets plan but, if I were a very profitable human being like all of NetJet owners are, I would in no way want my airplane "rented" out to just anyone. We manage aircraft, we do not charter them "rent" them. Huge difference.

First of all, you can't be an XOJet owner unless you can afford at least a half of a Citation X. That's 10 million. What does a 16th of an ultra go for these days? There goes that theory! Oh, and guess what, owners who "do not care if their plane sits and sits" don't buy into Netjets either. They by the plane and park it in a hangar, and they don't let thousands of other 16th owners fly on it. Its called pt 91.

These people don't accumulate this kind of wealth by wasting money. that's why RS introduced the fractional model. We have simply have further refined the model to to eliminate even more waste. (the empty legs)

 

[gunfyter]

I think you make money with this system... But you don't conquer the world like NJ wants to.


Letting people ue your airplane... isnt that what happens when EJM manages an airplane? EJM charters your plane out when you are not using it.