US company wants to provide value to private travellers by leveraging buying power
Private jet travel start-up Jumpjet plans to launch operations from 12 US cities in late May, offering low-cost business jet alternatives.
"We're like a destination management club or a Costco for private jets," says Jumpjet founder and chief executive Will Ashcroft. Costco is a US company that offers discounts on merchandise by leveraging the buying power of a large number of members. Ashcroft has been in the aviation business for 12 years, focusing primarily on the executive charter business in helicopters.
Jumpjet's target members are the estimated 55-62 million US airline customers (10% of travellers) who are more interested in convenience than price, says Ashcroft. The model calls for signing up enough members to give Jumpjet the ability to buy "lift" at discounted prices. Ashcroft says the minimum number of members needed to launch service from the 12 initial cities, including Atlanta, Denver, New York and Seattle, is 500 members. As of 21 March - three days after going public with its plans - Jumpjet had secured over 50 members.
The company's lowest-price yearly plan costs $1,500 a month plus a $500 sign-up fee. It allows the buyer two round-trips a month with up to three non-paying guests per trip. Fourteen days' notice is required.
Aircraft types, provided by White Plains, New York-based charter company Private Flight Group, range from the Cessna CJ1 light jet to the VIP Boeing 757. Members must be approved by the US Transportation Security Administration on sign-up as part of the company's security plan, and guests must be cleared to fly by the TSA 48h before a flight.
By comparison, Sentient, a competing company, charges as much as $4,300 an hour for a light jet, $6,000 an hour for a medium-sized aircraft and more than $10,000 an hour for a heavy business jet like the Boeing Business Jet. Flights can be booked with as little as 10h notice.
Source: Flight International
