This strategic acquisition for FlyHouse comes as it prepares to launch its app for customers. By utilising advanced technology, FlyHouse plans to enhance “the overall customer journey” and “simplify” the booking process. The firm says it has a “strong commitment” to offering transparent pricing, real-time availability and streamlined booking procedures.

Jack E. Lambert Jr., CEO of FlyHouse, said: “Acquiring JetASAP is a monumental step forward for FlyHouse. This integration not only enhances our service offerings but also aligns perfectly with our mission to transform the aviation industry. We are dedicated to leveraging JetASAP’s technology and expertise to deliver an exceptional experience for our customers and stakeholders. 

“This acquisition is a game-changer, and we are eager to integrate their platform with our upcoming app, setting new standards in private jet travel. Our goal is to make private jet travel more accessible, transparent, and efficient for our customers.”

Lisa Kiefer Sayer, founder and CEO of JetASAP, has now joined FlyHouse’s leadership team. 

“I can’t wait to jump in and get started,” said Kiefer Sayer. “In the coming weeks and months, I’ll be working closely with the team to scale both the FlyHouse app and JetASAP, building on our solid foundations. Together, we will be stronger and move even faster to reimagine the future of aviation.”

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The “industry-first” membership initiative is targeted at the experienced charter flyer, JetZen founder and CEO Eric Jantzen says the membership will see most value for customers flying 100 hours or more per year. As well as the ability to profit-share, members of the new programme will have access to discounted charter rates and guaranteed availability.

“I always thought if I was going to be flying private, this is exactly what I would have wanted to see,” Jantzen tells CJI. “Private flyers who are hitting over 100 hours per year, they know what planes meet their mission types and they don’t want to be sold something differently. They just want to know where they’re going to go and what time they need to be there. They prefer a system that really streamlines the booking process, none of this jumping from email to text messages to WhatsApp to signing on DocuSign.

“Our goal was to break from the pack and deliver a membership program of true value to real private jet flyers.”

JetZen has rolled out a feature within its program that promptly notifies members of any associated empty legs with their charter trips. Members can then opt to monetise these legs or leave them unoccupied, with all proceeds evenly split 50/50 and issued to the member in the form of flight credits.

“Traditionally, clients are unaware of the repositioning flights, or ‘empty legs’, associated with their charters,” says Jantzen. “Brokers and jet card programs tend to conceal this information, subsequently profiting from reselling these flights at a fraction of the market cost. We believe this practice is not right. If an empty leg exists because of a paying customer, we firmly believe that the customer is entitled to a share of the profits generated from its sale.”

Founded in 2022, the JetZen team has spent the past two years building all its systems in-house, including a booking tool, sourcing mechanism and CRM system.

“We built the system from the ground up. It’s all ours. We have built APIs to feed into operator scheduling software. I have amazing business partners, Muhammet Sivri and Adam Jay, these guys used to build software for Fortune 500 companies and helped to revolutionise the business-to-business insurance landscape.”

Since completion, Jantzen says his life as a broker has changed, becoming “much easier”. Typically, the workflow for brokers involves feeding a long list of requests from clients. A broker might get 10 requests a day and have to reach out to five operators for each request. That is 50 conversations for between five and 10 trips.

“Our system allows you to organise all the conversations based on each trip request. You can pool all of the contracts and just click and drag them over to wherever needed. Then you present options to the client via email, or on the app accessible with any mobile device or computer. When they select an option, the broker gets a notification with what they need to sign. Once that is done, it automatically gets sent to the operator and then it turns into a trip.”

The system is also adept at dealing with the fallout in the event of an aircraft grounding (AOG). “As soon as it happens, it’s just a process. You click a button, it takes all the backup solutions that you’ve harvested from the proposal stage, and you’re off to the races. In those situations time is of the essence, and you can lose an option and a client, in a matter of minutes if you’re not doing the correct thing.”

Headquartered in Fort Lauderdale, JetZen has a global presence with additional offices in Los Angeles and a forthcoming location in Malta opening in the summer of 2024.

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The operator, based at Lanseria International Airport, Johannesburg, South Africa,  said the promotions are part of its plans to expand the company’s international business operations.

According to CFS, Searle has been an “instrumental force” within the company having previously served as client services director. In her new role, Searle will oversee the CFS’s daily operations.

“It is an immense honour to assume the role of MD at CFS,” said Searle. “I am excited to lead our exceptional team and continue driving our business forward while maintaining our unwavering commitment to creating the ultimate aviation experience for all stakeholders.”

Reeves is also the co-founder and former CEO of CFS. His promotion to group CEO will see the executive lead operations of multiple companies within the group, as well as the company’s expansion beyond South Africa.

“I am delighted to take on the role of group CEO at CFS,” said Reeves. “Our focus will be on expanding our footprint internationally, forging strategic partnerships, and leveraging our expertise to create new avenues of growth and success in the business aviation industry.”

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Business jet charter operators with owned fleets have had the opposite experience. Jet Bank, a new corporate aircraft leasing firm, founded by Thomas Garbaccio, wants to change this. 

“Business aviation is about 20 years behind commercial aviation finance. If you look at the airline industry, well over 50% of the fleet is on lease,” Garbaccio tells Corporate Jet Investor. “This is because your fleet is a great way of unlocking equity to continue your business expansion.”

Garbaccio launched FTAI Aviation – a specialist commercial aircraft engine leasing company more than 10 years ago. It is now listed on the NASDAQ under the ticker FTAI with a $2.9bn market cap.

Jet Bank has raised $250m in launch equity, which he says will allow it to finance more than $500m in aircraft by adding moderate debt. He says that this is just the start. “The plan for us now is to get a few deals under our belt,” said Garbaccio. “We will be approaching charter operators who are looking to free up to $100m in cash and say, we can help you do that.”

Jet Bank’s core product is pure operating leases. Operators will sell their aircraft to the company and then lease them back for three to five years or longer. At the end of the lease, operators can simply return the aircraft. Jet Bank will either re-lease or sell the aircraft.

Jet Bank can also help charter operators find aircraft for sale and then buy and lease them to the operator.

Garbaccio is not concerned that Jet Bank is launching at the peak of the business jet market. “The markets are softening and more inventory is coming to the market, but this also makes it a good time to enter. Residual values will fall on some aircraft but it is a case of picking the right ones. OEMs are also raising prices,” he says.

Jet Bank is not the first operating lessor to target business aviation. But its focus on operators who rely on aircraft for revenue is different. It is not looking to compete with banks or other financiers on deals for individuals or corporates. “We want to encourage other lessors to look at business aviation and bring institutional capital to business aviation,” he says. 

If Jet Bank is successful, charter operator finance teams can look forward to new options. And some good meals.

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The Florida-based company plans to help operators strengthen their balance sheets and improve their liquidity positions by acquiring their aircraft on a sale-and-leaseback basis. With the newly raised funds and its Private Equity partner, Thomas Garbaccio, CEO and founder, Jet Bank told Corporate Jet Investor that with moderate leverage, the firm has up to $500m “of firepower” available to invest. 

“This significant financial boost supports Jet Bank’s primary objective of supporting charter operators in their pursuit of expansion and growth,” said Garbaccio. “This infusion of capital empowers operators to seize new opportunities, serve more clients, and broaden their reach in the competitive charter aviation industry.” 

Garbaccio said that until now, one of the only ways charter operators have been able to grow is by finding fractional or private owners and M&A activities. “What Jet Bank brings to the market is if you have an older fleet of aircraft and you want the place deposit on a brand-new type, we’ll buy your aircraft and lease it back for three to five years,” he said.

Jet Bank can purchase multiple aircraft in a single transaction, eliminating the lengthy and uncertain process of individual aircraft sales, continued Garbaccio. This means operators can free up cash while maintaining full control over the assets and use that money to either expand their business or reduce debt. “It’s similar to an equity investment, but without diluting the shareholders, whilst improving the balance sheet and the operating financial performance,” said Garbaccio. 

With aircraft values and interest rates rising financing has become an expensive ordeal. which could stagnate growth for charter carriers, said Garbaccio. “Our operating lease focuses solely on the assets, eliminating the requirement for additional guarantees,” he added.  

“We take away the major down payment required through purchasing, we take on the residual risks of the assets, and we give away the operational control of the asset to the operator for a predetermined period.” This enables operators to efficiently expand their fleets, achieve aircraft commonality, and realise substantial economies of scale in maintenance and pilot requirements.  

There are key lessons that business aviation can learn from commercial aviation, he claimed. “Business aviation is about 20 years behind commercial aviation in finance terms because it’s smaller and they aren’t the same means available to the private jet industry. Bonds or structured financial products are only available to the larger players with sizeable financials,” he said.  “Whilst if you look at the airline industry, well over 50% of the fleet is on lease. Because your fleet is a great way of unlocking equity to continue the business expansion.”

Following the equity raise with its partner, the new aircraft financing company is taking on clients looking to expand their fleets. “The plan for us now is to get a few deals under our belt,” said Garbaccio. “We will be approaching charter operators who are looking to free up to $100m in cash and say, we can help you do that.” 

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As part of the acquisition, Nick Barrows, founder, 3B Aviation joins Florida-based FlyUSA as the president of Acquisitions and Management. The firm employed ten pilots and managed 13 aircraft on behalf of more than 25 private owners prior to the acquisition.

“We are excited at the opportunity to expand our aircraft acquisition and management services on behalf of our more than 700 on-demand charter clients across the country,” said Barry Shevlin, CEO FlyUSA. “With the expansion of our team to include 3B Aviation founder and president Nick Barrows and his staff, we are now even better positioned to assist our clients who are looking to acquire their own aircraft.”

Based in Clearwater, Florida, Shelvin added that the firm’s new president of Acquisitions and Management is a highly experienced pilot and flight instructor. He also managed the first aircraft that Shelvin ever bought.

“I’ve always been impressed with Barry’s approach at FlyUSA, including using technology to improve customer experiences,” said Barrows. “Joining the FlyUSA team is a great opportunity – both for myself and for our experienced team of pilots. I believe this merger gives us the opportunity to really offer a much broader range of services to our valued clients.”

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Led by founder and CEO, Ethan Levy, the start-up pledges to “change the game”, by developing a cost-effective charter solution for passengers. The leadership team includes co-founder and executive vice president, Jonathan Downs and chief operating officer, Jacob Stepnowski.

“Our journey began with a shared vision to make private jet travel more affordable, transparent, and accessible to a wider audience”, said  Levy. “We combined our passion for aviation, extensive industry knowledge, and dedication to exceptional client service to create Tidal Jets, a game-changer in the industry.”

The firm began from the founders’ previous experience in the private aviation charter sector, with the trio citing high pricing and “excessive fees” as being a driving factor to create a new solution.

Levy added that the firm has partnered with powdered hydration company, Liquid I.V to distinguish Tidal Jets from its competitors. Owned by Unilever, Liquid I.V. claims to use “smart hydration technology”, that surpasses the hydration effectiveness of water. Tidal Jets will offer this to its clients in flight.

“This is particularly beneficial for long-haul or transatlantic journeys, as it offers the perfect combination to stay hydrated before boarding, during mealtime, and after waking up prior to landing,” said Levy. “It helps reestablish balance and keeps passengers feeling refreshed for their upcoming plans.”.

Tidal Jets will hold a launch party in Miami on July 14th.

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The expansion represents a continuing five-year growth trend in this category. This year, the operator plans to bring its global fleet to more than 270 aircraft (excluding helicopters). So far in 2023, Flexjet has added the Embraer Praetor 600 to its North American fleet, as well as a Bombardier Challenger 350 (pictured) in its super midsized private jet offering.

“Together with the existing Embraer Praetor 500 and Challenger 350 aircraft flying in our fleet, the addition of the Praetor 600 and the Challenger 3500 has given Flexjet the industry’s leading offering of mid- and super midsized aircraft,” said DJ Hanlon, executive vice president, Sales, Flexjet. “The aircraft available to travellers within this offering present mission versatility that is unmatched by any other private aviation provider.” 

Flexjet said that the Praetor 600 is the “backbone of its growing European fleet” and its introduction to the US fleet reflects the jet’s success in Europe. The North American fleet also includes the Embraer Phenom 300 and the Praetor 500 and 600; the Bombardier Challenger 350 and 3500; and the Gulfstream G450 and G650.

Hanlon added that investment in Flexjet’s mid- and super midsized fleet in North America has been vital to meet the growing demand for coast-to-coast travel in the US. The firm also plans to invest in personnel, with the hire of 388 additional flight crew members and 338 aircraft maintenance technicians expected in 2023.

“Our ability to fly our aircraft owners on these in-demand aircraft today, and not at some distant time in the future, is further validation of our forward-looking approach,” said Hanlon.

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XO reports a 26% surge in mobile app downloads Q1 YOY — travellers can book an entire jet almost anywhere in the world, anytime, or a single seat on a shared flight, in seconds just by reaching for a mobile device.

In the last month, the XO mobile app reported a 34% surge in searches for flights to Aspen — from all over the world — highlighting a growing interest in Aspen as a year-round destination. In response to this increasing demand, XO is expanding how travelers can fly to and from Aspen.

Starting from June 15th and extending through Labor Day, XO is offering three round-trip shared flights per week between New York and Aspen on a Gulfstream G400. Each aircraft is outfitted with 14 captain’s chair seats — starting at $2,995. XO Members enjoy the benefits of priority access and earn up to 4% in loyalty credit with every flight.

Lynn Fischer, chief marketing officer at XO: “Our Members recognise XO for the value and superior end-to-end experience we provide. By combining unique data intelligence, technology-driven solutions, and distinctive 24/7 service, we can meet the needs of every private aviation flyer.”

As the private aviation industry continues to evolve, XO is constantly trying to enhance the travel experience and redefine what is possible for its clients.

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Company CEO Eymeric Segard said that after two years of “post-pandemic unsustainable growth”, the European business aviation market is experiencing a major decline in activity.

“Our industry is highly cyclical and exposed to macro swings, we are not surprised by this slowdown in Europe. We had largely anticipated this situation, but nonetheless remain very concerned by this new market,” said Segard.

According to Guillaume Launay, head of Sales, LunaJets, the private jet charter operator reported a 40% revenue growth of $150m and a record 1,250 new clients last year, despite a slowdown since August.

“However, from January our revenue and bookings have decreased by 3% which is disappointing but well above market average,” said Launay, adding that the firm’s summer pre-booking level has been later than usual too.

This has meant that pricing and availability are better than last year, however. “We now predict a return to normal after the chaotic Summer 2022 due to airport and supply issues have abated significantly,” said Launay.

For Segard, the slow start for LunaJets comes as a warning of things to come for the whole of business aviation.

“Low-interest rates, merger and acquisitions and corporate activities at all-time highs are clearly behind us, as we foresee a hard landing for our industry with potential supply dislocation risks if conditions remain,” said Segard.

There are similar predictions coming from elsewhere in the industry. Last week, Global Jet Capital, the business jet financier forecast a fall in pre-owned aircraft transactions in 2023.

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