Jet card

A Private Jet Card is a private aviation product that enables holders to use various different aircraft at agreed-upon fixed hourly rates. Jet cards are offered by large and small fleet operators and charter brokers.^[1] On a jet card's pros list is convenience: Users don't have to exchange contracts or make payments each time they arrange a flight.^[2] There are many as 65 variables between jet card companies, according to Private Jet Card Comparisons, a buyer's guide to jet card programs.

Traditional Jet Card programs are prepaid hours of occupied flight time on a given aircraft or size of aircraft.^[1] Some programs include not only jets, but turboprops. The term “jet card” can also refer to prepaid private jet charter programs that have similar attributes.^[3]

Virtually every private jet provider now offers some form of a Jet Card or membership option. Notable Jet Card providers include Delta Private Jets, Flight Options, Airstream Jets, Marquis Jet (NetJets), Sentient, Jetsuite and Flexjet.^[4][5]

Jet Card History

The first Jet Card was created in 1997 by the founder of Sentient Jet, a charter broker located near Boston. The Jet Card was developed in response to the highly popular fractional ownership programs of the time offered by NetJets and Flight Options. The attraction to fractional ownership and ultimately the Jet Card was the consistency in pricing over charter and the reduced complexity of owning a jet, which were the only other options prior to NetJets. ^[6]

The term “jet card” was devised to create a marketing product for what equates to block on-demand charter.^[7] There are over 250 Jet Card programs on the market, with the number of providers having doubled in the past 10 years.^[8]

Jet cards offering turboprops and piston aircraft instead of jets are increasing. As of June 2018, there are 14 providers that offer turboprop and piston aircraft jet cards.^[9]

Jet Card Types

Jet Cards have evolved from the original card in 1997 which simply made charter pricing more consistent by guaranteeing fixed hourly rates to membership programs which offer free or discounted empty leg/re-positioning leg flights and individual seats on private jet shuttles.

Here are some examples of the varying types of Jet Cards offered today:

• The standard charter-based Jet Card - The most common type of jet card offered by charter brokers and operators. Customers pre-purchase hours or place money on account which is deducted at fixed hourly rates. Flights are sourced through the existing charter market.
• The fractional ownership jet card - Cards from Marquis Jet and FlexJet sell flight time in 25 hour increments on a specific jet type which is sourced from their fractional ownership fleets.
• Owned fleet jet card - Popularized by XO Jet, a charter operator with a fleet of Citation X's and Challenger 300's. The jets are configured similarly to increase quality and consistency. The fleet is backed up using the existing charter fleet during peak travel periods.
• Jets by the seat - A new class which was popularized by JetSmarter offers individual seats on private jets for certain routes after paying an annual membership. The seats can come from empty leg/re-positioning legs and/or shuttle flights which are scheduled private jet shuttles. Additional fees often apply for these seats.

Jet Card Cost

Jet Card purchase prices start at around $50,000.^[10] However, most Jet Card Programs typically run between $100,000 and $500,000.^[11] A new pricing model based on distance flown instead of hours has improved jet size flexibility and lowered the threshold for Jet Card Membership to only $25,000.^[12] Two research studies by Private Jet Card Comparisons show that jet card pricing can often be less than on-demand charter.^[13][14]

In comparing Jet Card cost, in addition to hourly rate, buyer's have to make sure they include the 7.5% Federal Excise Tax, International Destination Surcharges, International Fees, Initiation Fees, Monthly Membership Dues, Annual Membership Dues, Consumer Price Index (CPI) Escalator, Fuel Surcharges, Foreign Fuel Taxes, State Taxes, Airport Taxes and Fees, Customs Fees, Peak Day Surcharges, De-icing Charges, High-Density Airport Surcharges, Special Events (Super Bowl, Kentucky Derby) Surcharges, Diversion Costs, Overnight Fees, Catering, WiFi, Pet Cleaning, Pet Surcharges, Hanger Fees, Taxi Time, Preferred FBO Surcharges, Interchange Fee to upgrade or downgrade the size of aircraft, Flight Attendant, Administrative Fees, Ferry Fees outside of primary service area, Redeye Flight Surcharges. Which fees Jet Card providers include in the jet card prices they quote varies by program. Not all Jet Cards have membership fees and annual dues.^[15]

Developments

Two companies are varying from hours and dollars approach. Kansas City-based Executive AirShare is offering a jet card program that is denominated on a by-the-day basis. Airstream Jets is doing it by miles^[16] with the introduction of a jet card featuring distance-based pricing.^[17]

In 2015, Airstream Jets introduced its Distance Card, which bases its pricing on total miles flown rather than hours.^[18][19]

Some jet card programs offer categories of aircraft - turboprops, light jets, midsize jets, large jets, while other programs offer specific jet types such as the Gulfstream G4 or an Embraer Phenom 300.^[20]

See also

• Private jet
• Fractional ownership of aircraft
• Air charter
• Air taxi
• Business jet

References