Private jet cards and memberships

How do they work

There are two broad ways the cards and memberships are structured:

1. You buy a fixed number of hours, often in 25-hour increments, on a given aircraft model (eg 25-hours on a Phenom 300) or a given size of aircraft (eg 25-hours on a light jet).
2. You deposit a fixed sum (eg $200,000) and this locks in the hourly prices on various sizes of aircraft.

In option 1. above, even though you are specifying a certain model or size, you can usually use other types and sizes of aircraft for a fixed interchange rate. This is useful if a larger or smaller aircraft would be better suited to one particular flight.

There are also three broad types of card and membership providers, and then hybrids of these three:

1. Fleet owners who own and operate a consistently liveried fleet of aircraft and provide access to that fleet. Examples include NetJets, Flexjet and flyExclusive. These are sometimes referred to as closed fleet jet cards.
2. Aircraft management companies that manage and operate a fleet of aircraft, that are owned by various owners. Examples include Jet Linx and Solairus.
3. Brokers who work with a variety of operators to source the most appropriate aircraft for each mission.

There are also providers who operate a combination of these models eg they may have their own consistent fleet (a. above) and source aircraft from other providers (c. above) when needed. Wheels Up and XO fit in this hybrid category.

The word “membership” gets used a lot in private aviation, as explained in this article. In the context of jet card type products, memberships usually have a monthly or annual fee, and offer fixed hourly rates, and other jet card like features. A classic jet card usually does not have a monthly or annual fee, you just prepay for the hours or deposit a fixed sum.

What aircraft do they offer

Jet card and membership providers usually offer access to a variety of aircraft types and sizes. These include light jets, mid-size jets, super-mids, large cabin and ultra-long range and it’s not just jets, some providers offer fixed hourly rates on turboprops as well.

You can choose the right size aircraft for each mission, all at fixed hourly rates.

The fleet owners in a. above tend to have newer, late model aircraft, or recently refurbished aircraft. The fleet operators and brokers, in b. and c. above, tend to offer aircraft with a variety of ages from newer planes to aircraft that may be up to 25 years old. The age and consistency of the aircraft can be one of the key differences that people consider when choosing a card or membership provider.

Key features

Some of the key features to be aware of, if you are looking at jet cards, are:

1. The notice period for accessing an aircraft ie what is the shortest time that you are guaranteed to have a plane ready. This varies from about 24 hours to 96+ hours. If you plan trips well in advance this doesn’t matter, but if you do a lot of short notice trips it becomes more important.
2. The peak days, these are days in the calendar around major holidays, when the private aircraft demand is at its highest. Card companies may have longer notice periods, charge increased rates or black out travel altogether on these days. The number of days varies by card program from 20 to 65++.
3. Are funds refundable, or do they expire if not used, or can you roll them into a new program.

Hourly prices

Hourly rates start at about $5,000+ on turboprops and go up to $15,000+ on large cabin jets. There’s quite a bit of variation in prices between providers, depending on the planes and other services they offer. There’s also quite a bit of variation in how prices are quoted, for instance whether headline rates include all fuel costs and Federal Excise Tax (FET at 7.5%). And for instance, some providers charge extra for de-icing, whereas some will cover it, when needed, in the regular hourly rate. Similarly some providers offer an array of catering options included in the hourly rate, and others only offer basic drinks and snacks in the price with custom catering as an additional charge.

Where can you fly

Each card or membership provider will offer these fixed hourly rates in a set geographic area – their “Primary Service Area.” For most USA providers this area is the 48 contiguous states plus some distance, typically about 200 miles, into Canada and Mexico and the Caribbean. Flights outside these areas incur additional fees - usually referred to as ferry fees or repositioning fees.

In summary, private jet cards and private jet memberships offer convenient alternatives to aircraft ownership, fractional ownership and aircraft charter for individuals and businesses seeking private aviation services. They provide flexibility, convenience, and the peace of mind of fixed hourly rates.

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Private Jet Cards And Memberships