XOJET Announces $25,000 "All In" Transcon

[t-bone]

XOJET it will now offer fixed-price rates starting at $25,000 for one-way transcontinental flights between preferred airports serving major U.S. cities

Don't forget these key words here. We aren't giving anything away, we're just simplifying the pricing.

 

[greyskyracer]

No training contracts. Firts year FO is 52,200, and cpt is 90,000.

Thank you.....gigady

 

[NETFLIER]

Clyde,

are you just a dumb-a##

lookie here:

$10,261 in fuel
$ 9,000 in mtx/engine reserves
$ 1,000 for the crew pay
$ 500 in crew/pax catering
$ 500 landing fees

$21,561 assuming you make the trip in 5.5 hours and you pay $6.25 a gallon(in NY, not bloody likely). i didnt even include hotels, cost of benefits ect. its a way to get revenue, they are doing it near to exact of cost you knuckle head. the most important part to my prior post you didnt even comment on so i say again:



NEXT!!!!!!!!

 

[t-bone]

Clyde,

are you just a dumb-a##

lookie here:

$10,261 in fuel
$ 9,000 in mtx/engine reserves
$ 1,000 for the crew pay
$ 500 in crew/pax catering
$ 500 landing fees

$21,561 assuming you make the trip in 5.5 hours and you pay $6.25 a gallon(in NY, not bloody likely). i didnt even include hotels, cost of benefits ect. its a way to get revenue, they are doing it near to exact of cost you knuckle head. the most important part to my prior post you didnt even comment on so i say again:



NEXT!!!!!!!!

5.5 hours to go from Vegas to New York??? We're not flying King Airs!

And using your math, that is $3439 in profit for each flight! That number gets pretty big pretty quick if just a few of our airplanes are doing those trips each day...even better if it cuts down on our deadheads!

But as I said earlier, don't overlook the key words "starting at." A Vegas-NY flight will cost less than a NY-Vegas flight.

 

[NETFLIER]

sure thats the profit.(sarcasm)

listen here again:

$3490 in profit, lets say its $5000, do 1 charter to pick up owners because one of your X's broke and your miniscule "profit" is gone 10 fold. (strike one wing tip at these fbo's that are running out of space. send another pilot to get his type rating. ) you name it. this "profit" is gone....10 fold

this is not an argument of Netjets being better than anyone.

This is simply business 101, nobody that has a "superior" product or business plan DROPS prices or RUNS SPECIALS. ESPECIALLY Not in a market that deals with the upper 1% of income earners in America and when the airlines service is a debacle.

THEY NEED REVENUE MY FRIEND......


NEXT!!!!!!

 

[flyipilot]

I do not care if you are selling hamburgers or flight time, any business that needs to "package" or coupon" or offer a lower price out there is hurting. Plain and simple. If the business is good, you do not make deals. The only reason XO Jet is making any package deal is because they need to drum up business and need to make a sale....thus need cash. When was the last time the Four Seasons Hotel made a deal...they don't. They do not have to. If your business model is solid and you have the customers to pull a profit, you do not need to make any "special offers". I hate to see a compalny like XO Jet having to lower the bar in the fractional industry. But, since NetJets has most of the customers in 5 year contracts, it may be the only way to drum up any business. Sad.

 

[t-bone]

You guys are too much. You compare us to companies with very well established names, while we are only 2 years old.

Why are you so concerned with what we do anyway? Kinda makes me think you feel just a little bit threatened. I don't see you bashing the other operators...

 

[captain dad]

You can't have it both ways. Claim you are going to set the world on fire and then whine when compared to established companies.

From what I have been told, we have used you guys a couple of times for supplemental uplift on occasion, but I have no proof of that. You figure out if that's a good thing or spin it to your hearts content.

I hope you guys like it there and wish you all well. I pray none of you get junior manned to the mid-east.

I was curious about the two month on/taking your family with deal. Does XO pay the families way back and forth along with hotel etc... how does that work?


Peace out yo!

 

[caseyd]

sure thats the profit.(sarcasm)

listen here again:

$3490 in profit, lets say its $5000, do 1 charter to pick up owners because one of your X's broke and your miniscule "profit" is gone 10 fold. (strike one wing tip at these fbo's that are running out of space. send another pilot to get his type rating. ) you name it. this "profit" is gone....10 fold

this is not an argument of Netjets being better than anyone.

This is simply business 101, nobody that has a "superior" product or business plan DROPS prices or RUNS SPECIALS. ESPECIALLY Not in a market that deals with the upper 1% of income earners in America and when the airlines service is a debacle.

THEY NEED REVENUE MY FRIEND......


NEXT!!!!!!

Respectfully,

I point you to Honda. In 1968 they sold not one car in America. But they identified a niche in the minibike market. With the introduction of a 50cc bike and ambitions out of any proportion to their then current size and financial wherewithall they set about a deliberate assault on Detroit. Look at em today. And I point you to no less than Southwest and WalMart. Both opportunistic companies who never fail to identify a chance to expand their image and franchise. Southwest regularly drops prices and last spring WalMart dropped prices on more than 16,000 items in their stores.

I have no idea if XOJet is motivated by this or a need for revenue, and neither do you.

caseyd

 

[AeroDMB]

I was under the impression the $25,000 trans-con marketing campaign is to sell the convenience of a relatively flat, predictable rate...not necessarily as a true "special" discounted, reduced rate as some are referring to.

Don't forget XOJET did manage to drum up close to $2.6 billion in financing, i'm not a finance or investment major but that is pretty damn convincing that their business model is currently successful and has a bright future.

 

[clydefastly]

Clyde,

are you just a dumb-a##

lookie here:

$10,261 in fuel
$ 9,000 in mtx/engine reserves
$ 1,000 for the crew pay
$ 500 in crew/pax catering
$ 500 landing fees

$21,561 assuming you make the trip in 5.5 hours and you pay $6.25 a gallon(in NY, not bloody likely). i didnt even include hotels, cost of benefits ect. its a way to get revenue, they are doing it near to exact of cost you knuckle head. the most important part to my prior post you didnt even comment on so i say again:



NEXT!!!!!!!!

Do you have turrets or something?


I guess I struck a nerve. I'm impressed with your ability to increase font size and use the bold feature. Happy now?
Since you have it all figured out, why are you getting all worked up over someone else trying something different? Just go on your happy way thinking that nothing works unless NJ proves it so.
or...
Don't fool yourself, people who are much smarter than you that have a much better understanding of our market/industry are doing this, not armchair businessmen like yourself.

 

[Whale Rider]

sure thats the profit.(sarcasm)

listen here again:

$3490 in profit, lets say its $5000, do 1 charter to pick up owners because one of your X's broke and your miniscule "profit" is gone 10 fold. (strike one wing tip at these fbo's that are running out of space. send another pilot to get his type rating. ) you name it. this "profit" is gone....10 fold

this is not an argument of Netjets being better than anyone.

This is simply business 101, nobody that has a "superior" product or business plan DROPS prices or RUNS SPECIALS. ESPECIALLY Not in a market that deals with the upper 1% of income earners in America and when the airlines service is a debacle.

THEY NEED REVENUE MY FRIEND......


NEXT!!!!!!

Hey NETFLIER, are you a new hire at netjets? Just curious from your 77 posts.

 

[Whale Rider]

You can't have it both ways. Claim you are going to set the world on fire and then whine when compared to established companies.

From what I have been told, we have used you guys a couple of times for supplemental uplift on occasion, but I have no proof of that. You figure out if that's a good thing or spin it to your hearts content.

I hope you guys like it there and wish you all well. I pray none of you get junior manned to the mid-east.

I was curious about the two month on/taking your family with deal. Does XO pay the families way back and forth along with hotel etc... how does that work?


Peace out yo!

Yep, XOJet pays for it all. No need to tell you how it works. It is what it is.

 

[captain dad]

Yep, XOJet pays for it all. No need to tell you how it works. It is what it is.

Well thank you for not burdening me with the details.

 

[X-rated]

sure thats the profit.(sarcasm)

listen here again:

$3490 in profit, lets say its $5000

This is simply business 101, nobody that has a "superior" product or business plan DROPS prices or RUNS SPECIALS.

Hey Nutjob,

First, in the three years I have worked for this company, I have never seen an owner trip sold off to charter. Our model is specifically designed to so that doesn't happen.

Second, maybe you noticed, there are very few city pairs that qualify for our lowest flat rate price. That's because we have negotiated very attractive fuel and service pricing at those locations and are able to pass the savings on to our customers. Your numbers, like you, are completely full of sh!t. Why do you always try to come off like on expert on things you obviously know absolutely nothing about. It makes you look ridiculous!

I don't know what Business School you claim to have attended, but to my way of thinking, Best Product, Best Service, Best Price seems like a better summary of Business 101.

I don't think your fuel burn, fuel price, and certainly flight time numbers are even close. We have our own mechanics and all of our airplanes are under warranty, so our mx costs are significantly less than yours. Also, we easily average more than one leg per day per plane. Nevertheless, just to prove what an idiot you are:

$5000 profit times 127 aircraft (due to be delivered in the next 4.5 years) times 365 days equals nearly a quarter of a billion dollars per year profit. I'd say that's pretty good, and if you could guarantee it, I'd like to invest! Clearly, you don't agree though. So, smart guy, want to take a guess how many years NetJets made anywhere near $5000 profit per plane per day not including aircraft sales? Let me give you a clue doofus.
Never!!!

 

[NETFLIER]

hey x-rated,

dont look now but you just put yourself in the Jet Blue model. hope and wish on the warranty my fellow.

i have been flying the X for 5 years and I am certain my numbers, based on the avg transcon times, are more than accurate and even gave you the benefit of the doubt.

you may not have chartered yet but you will. you may not have bent some iron, buy you will. you may not have paid for a type rating but you will.

Look alive people.

lastly....


NEXT!!!!!!!!

 

[Number$Cruncher]

I do not care if you are selling hamburgers or flight time, any business that needs to "package" or coupon" or offer a lower price out there is hurting. Plain and simple. If the business is good, you do not make deals. The only reason XO Jet is making any package deal is because they need to drum up business and need to make a sale....thus need cash. When was the last time the Four Seasons Hotel made a deal...they don't. They do not have to. If your business model is solid and you have the customers to pull a profit, you do not need to make any "special offers". I hate to see a compalny like XO Jet having to lower the bar in the fractional industry. But, since NetJets has most of the customers in 5 year contracts, it may be the only way to drum up any business. Sad.

This is a great example of why pilots very often make very, very bad business people...

 

[bluepost]

From a NJA guy I wish you folks luck. I am always happy to see a company succeed that treats it employees well. Sounds like you folks are off to a great start!

 

[clydefastly]

From a NJA guy I wish you folks luck. I am always happy to see a company succeed that treats it employees well. Sounds like you folks are off to a great start!

Thanks for the kind words. I was begining to wonder what kind of people work at NJ.

 

[Whale Rider]

hey x-rated,

dont look now but you just put yourself in the Jet Blue model. hope and wish on the warranty my fellow.

i have been flying the X for 5 years and I am certain my numbers, based on the avg transcon times, are more than accurate and even gave you the benefit of the doubt.

you may not have chartered yet but you will. you may not have bent some iron, buy you will. you may not have paid for a type rating but you will.

Look alive people.

lastly....


NEXT!!!!!!!!

Wow, you poor guy. You need help sir.

 

[Whale Rider]

Well thank you for not burdening me with the details.

Your, welcome. Thanks for wishing us all kinds of good luck, then turning around and saying the above. yourself.

 

[t-bone]

From a NJA guy I wish you folks luck. I am always happy to see a company succeed that treats it employees well. Sounds like you folks are off to a great start!

Thank you.

 

[Jeff Helgeson]

The answers are in the article

Here are a few questions. Just asking. I know you dont make all the business decisions, but do the best you can. Thanks.

Are these fares good on a flight from Thermal, CA to Melbourne, FL?

If your closest plane is 800 miles away, is the fare still good?

Do these flights have to be booked days in advanced, or hours in advance?

Is this "news" just to get some ink?

Is business so slow that you need to do some cute advertising?

4000 destinations included in the fixed price and no repositioning fees answers your first two questions. The rest is just bad blood on your part. Information about a new innovative competitor seems to get you all hot and bothered. This forum should be about information, not emotion.

I thought the article was informative. XOJjet has secured a historic amount of financing from Wall Street. I would think information about their operation would be welcome on this forum.

If I were looking to fly corporate again, XO Jet would be high on my list of potential employers.

 

[skiandsurf]

I dont want to keep the sparring going back and forth, but lets just clarify a couple of facts.

1. Somebody said the company is only 2 yrs old. Then says that they worked there for 3 yrs. I know for fact that the company is more than 3 yrs old, maybe in a different name (JH was hired in 2004, and his buddy was CP for a while before that, so the company was not founded 2 yrs ago).

2. Someone says that it took NJs a long time to be profitable. Its hard to lay the ground work, but easy to ride the coattails of others.

3. XOJets original plan was to be a "sell-off carrier" for NJs. But when they tried to steal our owners, that relationship was severed.....by NJs.

4. On the XOJet website, they claim to be the largest C-X operator. Not sure how they can make that claim, when they operate 20 (?) and NJs operates 70(?).

................
Now for speculation.

1. Business is slow, and they are trying to get some business.
..............................

I know a few of those XO pilots, and wish them well. But lets try and keep the facts straight.

 

[skiandsurf]

If I were looking to fly corporate again, XO Jet would be high on my list of potential employers.

Again, lets keep the facts straight. XOJet is not a Corporate Flight Department. Its a Charter Operation.

Netjets, Flexjet, CitationShares=Fractional.

IBM, Caterpillar, Pepsi=Corporate.

XOJet, West Coast Charters, East Coast Charters= Charter.

Hope this helps.

 

[Jeff Helgeson]

It doesn't help

Again, lets keep the facts straight. XOJet is not a Corporate Flight Department. Its a Charter Operation.

Netjets, Flexjet, CitationShares=Fractional.

IBM, Caterpillar, Pepsi=Corporate.

XOJet, West Coast Charters, East Coast Charters= Charter.

Hope this helps.

All the above are corporate-type of flying, using corp/ jets. Most people on this board understand this.

The facts are you always have to have the last word. The answers to your initial post were in the article. You are just taking pot shots at a new competitor. I am glad I will never have to share a crew bus with you. (I am sure you will respond with the differences between a crew bus, limo, taxi, etc.).

Speculation: You are sitting at the computer at signature waiting for you fraction client.

 

[skiandsurf]

Speculation: You are sitting at the computer at signature waiting for you fraction client.

Again, fact vs speculation. Sitting in my office at the house watching the news. Been home since noon on saturday. Just got my kid off to school. Going to the dentist at 10am. Back to work on saturday.

 

[captain dad]

Your, welcome. Thanks for wishing us all kinds of good luck, then turning around and saying the above. yourself.

I asked you a simple question and you respond with ego and attitude. Do you assume I’m not intelligent enough to comprehend the intricacies of travel itineraries? How do you expect people to respond?

I find your “family comes along” policy for really long trips to the mid-east interesting and would like to know how that works. If there was "no need to explain it", I wouldn't have asked the question.

Every time I respond to one of your posts, I regret it. Why is that?

 

[flyipilot]

I was under the impression the $25,000 trans-con marketing campaign is to sell the convenience of a relatively flat, predictable rate...not necessarily as a true "special" discounted, reduced rate as some are referring to.

Don't forget XOJET did manage to drum up close to $2.6 billion in financing, i'm not a finance or investment major but that is pretty damn convincing that their business model is currently successful and has a bright future.

I am not sure you can say that the fact they drum up a lot of money means they have a clue what they are doing. Branson has suckered many banks into investing into Virgin America and they bleed cash daily. Banks are not the smartest investors..(as we all are feeling now).. and foreign investments are a huge gamble that may or may not pay off. In fact Skybus went to Asia to get a lot of investment cash and they plan on expanding with it...oh wait, I mean losing it. So, in my book going to get foriegn investors to pay for your expansion here at home means you probably can not get ANY investments from home, thus, foreigners can be easy to convinced that the american dream may still be alive. Maybe.

 

[Whale Rider]

I asked you a simple question and you respond with ego and attitude. Do you assume I’m not intelligent enough to comprehend the intricacies of travel itineraries? How do you expect people to respond?

I find your “family comes along” policy for really long trips to the mid-east interesting and would like to know how that works. If there was "no need to explain it", I wouldn't have asked the question.

Every time I respond to one of your posts, I regret it. Why is that?

Hey Dad,

If your question so simple, why can't you accept a simple answer? Everyone can see your "Good Cop/Bad Cop attitude". If you don't like my answers don't ask the questions.