A membership-only fixed-base operation (FBO) to be built at Denver, Colorado’s Centennial airport is aiming to turn the traditional revenue model based on fuel sales on its head.
Xjet Club plans to aggregate the purchasing power of its members to provide them with significant fuel and other savings, while charging a premium for its state-of-the-art hangars and luxury clubhouse amenities.
Membership of Xjet Club, which plans to begin construction of its first FBO at Centennial in the fourth quarter for completion late next year, will also allow owners to use each other’s aircraft, and the company will offer charter management and jet-card back-up to members.
“We aim to get them out of fractional and cards [and into the club],” says chief executive Josh Stewart.
Membership will be limited to 30 aircraft, and Xjet is aiming for a range of aircraft types to provide the most flexibility, says Stewart. The members’ combined purchasing power will enable the club to offer savings on fuel, training and insurance, he says. The company has also applied for its Part 135 operator’s certificate so it can generate revenue for members by chartering out their aircraft.
Financing for the Centennial FBO is being provided by a single private investor who will also be a member, says Stewart, who adds that Xjet is already scouting for a second location on the US West Coast.
A US East Coast membership-only FBO is also in the plans, and Stewart believes “the power of the club could work on Europe, by reducing the cost of operating a business jet”.
GRAHAM WARWICK/WASHINGTON DC
Source: Flight International
