From Bloomberg Business and Delta Airlines Press Release:
Delta Air Lines is cooking up what may be one of the most appealing flight upgrades yet: one that allows you to bag a commercial flight altogether and board a private jet.
The new upgrade program, targeted at what Delta calls “high-value customers,” will cost $300 to $800, depending on destination. Beginning as soon as this week, passengers who have achieved elite or “medallion” status in Delta’s SkyMiles frequent-flyer program will be eligible for the upgrade offers. But officials stress that the initial number of private jet flights will be small and focused mainly at Delta’s East Coast hubs.
“This is truly a groundbreaking new approach from both industry standpoints,” said James Murray, vice president of operations at Delta Private Jets (DPJ). “Nobody else can do what we’re talking about doing.”
The upgrades could also help Delta quell one of the thorniest—and costliest—problems in private aviation, known as “empty legs,” or the need to reposition a jet without having a customer headed to that particular location. These inefficient flights account for roughly a third of all private jet flights, despite years of effort by the industry to minimize them. The advent of greater tracking data and new software analytics tools is likely to help private jet operators reduce their empty legs even further, said Erik Snell, president of Delta Private Jets.
Source: Delta Private Jets via Bloomberg
Initially, only Delta’s top customers—those at the highest “Diamond Medallion” level, which is met when people spend $15,000 at Delta and travel at least 125,000 miles or 140 flight segments per year—were going to be invited to purchase the upgrades. But the company has spent several months tweaking its model and decided to expand the pool of potential customers by opening it to people at the lowest elite tier, those who travel 25,000 miles or 30 segments annually, and who spend $3,000. Most of the upgrades will involve travel scheduled the next day, although Delta Private Jets said it would have some flights that offer travelers as much as 48 hours’ notice.
Earlier this year, Delta Private Jets filed for a patent on the scheme of how to transfer passengers from a commercial carrier to a private jet operator. DPJ, a wholly owned subsidiary that calls itself the fourth-largest U.S. operator of private jet flights, has received regulatory approval to fly Delta passengers on 160 domestic routes, although it plans to begin mainly with flights among Atlanta, New York, and Cincinnati/Northern Kentucky International Airport, near the unit’s Erlanger (Ky.) headquarters.
Over time, Delta Private Jets officials said the program might expand, potentially deploying part of the private jet fleet toward regular upgrades on certain routes, complementing Delta’s commercial service. And depending on passenger reception, Delta may begin marketing the option of a private jet upgrade as commonly as it touts airport lounges, first class, and other amenities for the most lucrative travelers. Still, “Delta operates a whole lot more flights than we have [private] airplanes,” Murray said, which means an upgrade to a private jet is likely to remain a niche offering.
Yet, the “empty legs” problem of a vacant cabin won’t ever be eliminated. That’s one reason executives at the Delta unit were keen to see if they could match up routes with their mainline parent and harvest some of Delta’s most profitable customers—many of whom might not have flown privately before but could afford to.
Read the full article in Bloomberg Business…
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Prior to ExcelAire, Mr. Horowitz served as Vice President of Business Development for LISS Technologies Consulting. He was also a Brand Ambassador for both Tempus Jets and Webair Internet Development. A professional golfer, Joe played on numerous professional tours, including PGA Tour Canada and has won professional tournaments worldwide.
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