The current model sells aircraft to customers and then manages but in a slightly different way than others, guaranteeing the customer so many dollars for the ability to charter and providing them flight service in whatever one is closest.
Fleet Exchange allows Xojet customers to buy an interest in Fleet Exchange equivalent to half or 100 percent of a Citation X, at prices similar to what the manufacturer charges. As of late August, Fleet Exchange had six customers with a whole-airplane or half-airplane interest.
The buy-in comes with access to any aircraft in the Fleet Exchange program up to 600 flight hours a year. Owners pay per occupied hour to use any airplane in the fleet. There is guaranteed availability, with no peak days or blackout periods. Owners are also entitled to benefits of tax depreciation as they would normally from aircraft ownership.
In the old days, the customer had to go fund the purchase while I think under the new deal, XO will hold the paper. They can buy in block from Cessna and Bombardier, sell and make a profit just like NJ, and also finance the sale and make some more. The buying power from the funding gives them tremendous leverage with the supply side like NJ even though the use side is different.
