{"id":8417,"date":"2017-07-06T09:10:40","date_gmt":"2017-07-06T15:10:40","guid":{"rendered":"http:\/\/flightlistpro.com\/private-jet-charter\/?p=8417"},"modified":"2017-07-06T09:10:40","modified_gmt":"2017-07-06T15:10:40","slug":"xojet-charter-fleet-programs-costs","status":"publish","type":"post","link":"https:\/\/flightlistpro.com\/private-jet-charter\/xojet-charter-fleet-programs-costs\/","title":{"rendered":"The Six Principals of Owned Charter – XOJET, Part 2"},"content":{"rendered":"

By Alasdair Whyte,\u00a0<\/b>June 16, 2017,\u00a0<\/span>Corporate Jet Investor<\/em><\/p>\n

\n

Part 1<\/a> was an overview and brief history of XOJet touching on its strategic goals and fleet.<\/p>\n

\n

Part 2<\/strong><\/p>\n

The six principles of owned charter<\/strong><\/p>\n

\"\"<\/a>The majority of aircraft that are used for charter in the US are owned by individuals or companies that make them available when they do not need them. This means that most charter companies do not worry about ownership costs. XOJET is one of a relatively small number of charter operators that own aircraft.<\/p>\n

Despite ownership costs, XOJET CEO Brad Stewart believes that there are benefits from an owned fleet.\u00a0 As a former management consultant, he has identified six principles that an owner-operator needs to be profitable. These are: a closed loop network; a floating fleet; high utilization; direct distribution to customers; dynamic pricing; and scale advantages. Although he highlights that these principles may not work for new aircraft.<\/p>\n

XOJET meets all of these tests.<\/p>\n

More than 80% of passengers on XOJET aircraft come from its own sales team, including its programs. The company says that it sold more than 950 programs in 2016. This program includes Preferred Access (for a refundable $100,000 deposit); Elite Access (guaranteeing availability at 12 hour notice for $200,000 deposit and $8,500 hourly fee including fees and surcharges); and an Enterprise Access for corporates.<\/p>\n

In the last few years, XOJET has also added sales offices in New York and Los Angeles to boost its direct sales. It is also about to open a new office in Palm Beach, Florida. This is on top of its headquarters in San Francisco and an operations centre in Sacramento.<\/p>\n

XOJet and its 41-aircraft fleet are included in the Floating Fleets section of\u00a0FlightList PRO<\/a>‘s multi-search platform along with all 232 floating fleet aircraft and 14 operators. \u00a0Free 30-day trials available\u00a0here<\/a>.<\/em><\/h4>\n

Most of the 20% of passengers that it does not sell directly come from charter bookings made from broker Sentient Jet (part of Directional Capital) and JetSmarter \u2013 both XOJET preferred partners.<\/p>\n

XOJET boosts its utilization by not basing aircraft at one airport and having just two types (this also saves on crew and maintenance costs).<\/p>\n

He believes any owner-operator needs a minimum of 15 aircraft. XOJET now has a fleet of 41 super midsize aircraft (GMJ has another six). In January 2017 TPG also acquired TMC, which had been XOJET\u2019s preferred travel provider for a number of years. TMC has another 55 aircraft. He does not plan to order any more aircraft for XOJET soon.<\/p>\n

He has no plans to launch XOJET outside the US but he is keen to add aircraft management \u2013 something the company stopped focusing on in 2006.<\/p>\n

\u201cWe have clients who are flying a lot and we can help advise them on the pros and cons of owning an aircraft versus program,\u201d says Stewart. \u201cWe have a fantastic platform and can offer owners great service. And it fits into our advisory strength.\u201d<\/p>\n

He says that the company can launch management itself but is also interested in acquiring significant management companies.<\/p>\n

By Alasdair Whyte<\/a>, Corporate Jet Investor<\/em><\/p>\n

Part 2 of 3<\/strong><\/p>\n

\n

Source: \u00a0Ala<\/a>sdair Whyte<\/a>,\u00a0Corporate Jet Investor, 6\/16\/17<\/p>\n

All 41 XOJet charter aircraft are available in the FlightList PRO<\/a>\u00a0multi-search platform which includes all 16,631 charter aircraft and 3,419 charter operators worldwide. \u00a0FlightList PRO is used by the most successful and experienced\u00a0brokers and travel professionals in the industry; 80% of users have arranged charters more than 10 years, 25% more than 20 years.<\/em><\/p>\n

Air Charter Alerts by FlightList PRO, are the latest announcements in the private air charter industry about operators, brokers and charter aircraft, and geared towards active participants in the industry.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

‘
\nThe majority of aircraft that are used for charter in the US are owned by individuals or companies that make them available when they do not need them. This means that most charter companies do not worry about ownership costs. XOJET is one of a relatively small number of charter operators that own aircraft.<\/p>\n

Despite ownership costs, XOJET CEO Brad Stewart believes that there are benefits from an owned fleet.\u00a0 As a former management consultant, he has identified six principles that an owner-operator needs to be profitable . . .<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[43],"tags":[45,56,101],"class_list":["post-8417","post","type-post","status-publish","format-standard","hentry","category-private-aviation-industry-news","tag-air-charter-news","tag-jet-charter-operator","tag-private-aviation-news"],"yoast_head":"\nThe Six Principals of Owned Charter - XOJET, Part 2 - Jet Charter News Alerts, Broker-Operator Directory - FlightList PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/flightlistpro.com\/private-jet-charter\/xojet-charter-fleet-programs-costs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Six Principals of Owned Charter - XOJET, Part 2\" \/>\n<meta property=\"og:description\" content=\"' The majority of aircraft that are used for charter in the US are owned by individuals or companies that make them available when they do not need them. 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