XOJet growth...??

[kingaira90]

What is the per diem? Or is it handled another way? Thanks -kingaira90

 

[t-bone]

What is the per diem? Or is it handled another way? Thanks -kingaira90

No per diem. All expenses go on company credit card, or your own if you want the points.

 

[atpcliff]

Hi!

What are "expenses"? If all your meals on the road are expenses and they are paid by the co. OK. If they aren't expenses, then you have to pay for all your meals without any perdiem, and that is NOT OK.

Thanx ahead of time for your answer.

cliff
YIP

 

[t-bone]

Seriously?

expense

Definition

Any cost of doing business resulting from revenue-generating activities.
.....
From what you've read, do you honestly think we're paying for our own meals? This company is all about treating its employees well, and that includes providing a reasonable QOL while on the road.

Company pays for: dry cleaning, BlackBerry, all meals while on the road, rental cars, hotels, FAA medical, uniforms, jacket, and any tips you dole out.

Hope that clarifies it for you.

 

[atpcliff]

Hi!

Thanx-it does clarify it. Sounds good.

cliff
YIP

PS-I know some of our pilots WOULDN'T like it, because they'd rather have the perdiem and are really cheap, so they can bank more $.

 

[Huggyu2]

I went through the interview process last year, and was very impressed with the leadership there.
Best of luck to all of you there.

 

[NCherches]

9 days or 17 days on the road....too much for me yo. I'd need more boxers for that sort of rotation...

 

[NJA Capt]

Take a close look at NJA-....They will actually take a fraction of those aircraft as many owners leave for other solutions (XO Jet, whole aircraft) and a HUGE number of current aircraft are exited from their fleet.

Fraction of deliveries??
NJA has taken all of the 800XP deliveries....and added more, taken all the Excel deliveries.....and added more, taken the X deliveries....and added more, Canceled CJ3 orders and bought the same number of 400XP...then added the CJ4 order.

400+ planes based in CMH, not including NJE/NJI/EJM. Less than 10% of the fleet has been phased out/retired. Not exactly a "HUGE" number....

 

[NJA Capt]

1. XO jet claims that it is fractional, but cheaper if you buy a larger share. Same operational concept. You buy a fraction of a plane, pay mgmt fees, and hourly rates based on usage.

If XO is a fractional, and structured similar to all the others, how does it advertise being the first private airline when it was founded 16 years after NJA?

 

[152SIC]

XO is not a fractional. The owners own the whole aircraft.

 

[t-bone]

differences

Anyone who claims that XOJet has a similar business model as the fractionals is mistaken.

While NetJets only flies Netjets passengers, FLOPS only flies FLOPS passengers, and FlexJet only flies FlexJet passengers...we can fly passengers for all of the above, as well as any other straight charter client that wants to fly on us. So while they are deadheading all over the place to pick up their owners, we are able to market ourselves to a much bigger pool of business when we need to move an airplane to cover an owner's trip. Our deadhead percentage is very low, and the percentage of that deadhead that we eat the cost on is even lower.

Another difference is that our airplanes are not owned by multiple different owners. We don't sell 16th shares, or 25-hour blocks through Marquis. Therefore, we don't need supplemental lift during the peak seasons like the true fractionals do. Rather, we backfill our own flying by helping those guys out.

It's a better deal for our owners, they don't pay an obscene hourly rate, and it's a better deal for us because we keep the charter revenue and rarely pay for deadheads.

XOJet is similar to the fractionals because we all fly airplanes. That's about it.

 

[jonjuan]

It's a better deal for our owners, they don't pay an obscene hourly rate, and it's a better deal for us because we keep the charter revenue and rarely pay for deadheads.

XOJet is similar to the fractionals because we all fly airplanes. That's about it.

But they do pay for the entire plane? Take a CX, for example. At $20,000,000, they are now exposed to the ENTIRE cost of depreciation. Say a CX is worth 65% after 5 years and 1,000 hours a year in the airframe. An owner flies 300 hours a year or 1,500 hours over 5-years.
They have lost $7,000,000 or $4,666 an hour of asset value. Now take a 300-hour fractional owner who buys the plane for $7,500,000. With a 35% loss, the total loss will be $2,625,000 or $1,750 per hour. A difference of $2,900 per hour.
Now factor in the cost of capital. $20,000,000 at 8% a year is $1,600,000 for year one or $5,333 per hour. Cost of capital on the fractional owners $7,500,000. 8% is $600,000 during year one or $2,000 an hour for a delta of $3,333 an hour.
Combining these two differences yields $6,233 an hour or $9,350,000 over 5-years.
If you don't think most potential owners won't consider this, you are crazy. Very, very niche market, imho.

 

[skiandsurf]

But they do pay for the entire plane? Take a CX, for example. At $20,000,000, they are now exposed to the ENTIRE cost of depreciation. Say a CX is worth 65% after 5 years and 1,000 hours a year in the airframe. An owner flies 300 hours a year or 1,500 hours over 5-years.
.

Forget the Dollars and Cents, how about owners. If you only have 16 aircraft, and you lose one, thats big. At NJs, if we lose one owner, thats not even a drop in the bucket.

 

[skiandsurf]

But they do pay for the entire plane? Take a CX, for example. At $20,000,000, they are now exposed to the ENTIRE cost of depreciation. Say a CX is worth 65% after 5 years and 1,000 hours a year in the airframe. An owner flies 300 hours a year or 1,500 hours over 5-years.
.

Forget the Dollars and Cents, how about owners. If you only have 16 aircraft (16 owners), and you lose one owner, thats big. At NJs, if we lose one owner, thats not even a drop in the bucket.

 

[Swass]

Apparently the owners are happy with the arrangement. They see their time as a valued asset, much the same as NJ owners, but with the charter biz to add to that value when they aren't using said plane, if I read it correctly.

Sounds like what Beech is doing with their 135 cert. They are putting private owners on their program with benefits such as flying their plane with Beech pilots when it would otherwise not be flying (hence revenue). I may be wrong with my assertion, so tell me if so....