RUNWAY GUIDE: WHAT IS A PRIVATE JET SUBSCRIPTION?
MARCH 9, 2023
Having the freedom to fly with spontaneity, conduct last-minute or location-sensitive business, or even split time between a few favorite destinations is true travel luxury. But if guaranteed access coupled with recurring regular payments is your preference – it may be worth looking into the subscription side of aviation.
Whether you want to call it a jet membership, a private jet subscription, fractional ownership, or a monthly jet lease – at Flexjet, it all means unparalleled access to an ultra-modern fleet of premium aircraft. Discover how our program structure delivers the best aspects of both ownership and lease philosophies.
WHAT IS A JET LEASE?
As a global leader in subscription-based private aviation, Flexjet frequently answers nuanced questions regarding parameters, programs, and pricing within a rapidly evolving aviation industry.
A quick way to differentiate between these two jet programs is by remembering that leasing a private jet is remarkably like the fractional ownership experience; however, lease participants do not pay the ownership-level prices upfront.
Private jet subscriptions, like a jet lease program, usually offer access to flight time in 3–5-year agreements or on an ‘as-needed’ basis; however, they price at an all-in hourly rate.
Clients in this model still pay Monthly Management Fee and Occupied Hourly Rate in addition to a deposit and monthly lease payment that some find more approachable. It’s an ideal solution for those still testing out the benefits of this innovative approach to travel.
At Flexjet, our aircraft leasing program offers the advantage of purchasing a jet share while maintaining comfortable liquidity. Flexjet’s innovative Versatility PlusTM lease program allows you to customize your annual flight hours to align with the actual number of flight hours you require each year.
However, aircraft models and cabin classes within shorter-term programs or jet charter options can rarely be guaranteed in a high-demand market.
THE COUNTRY CLUB MODEL
When it comes to the subscription-based, recurring business model, many are comfortable with the concept in shared spaces, a favorite magazine, a gym, streaming entertainment services, or even your favorite restaurant or coffee place. On a slightly larger consumer level, we have the structure of a country club.
This country club analogy is beneficial when relating to a private jet subscription. Each requires a monthly installment payment or ‘dues’ to access recreation facilities, dining, club services, events, and more.
Although it’s the golfing (or flying in our case) that drives most membership and access, there is more offered. It’s entirely up to the member to take full advantage of the parameters within their account, and individuals are responsible for their entire monthly due regardless of the utilization level.
These establishments are partly successful because of their recurring, commitment-based cost structure and strong retention practices – the same principles that help establish a successful aviation provider.
Flexjet has adapted to popular subscription-based models that make it easier to attract new members at a time when other providers are still coping with significant reductions in inventory or even facing extensive service backlogs.
Outside of private jet lease programs – the Flexjet fractional ownership program provides many benefits including Red Label by FlexjetTM, guaranteed access, global fleet interchangeability, crews dedicated to your tail number, exclusive luxury interior designs from our LXi Cabin CollectionTM, and much more.
If you are ready to explore the best that luxury private jet travel has to offer, Flexjet’s private aviation experts can provide you with everything you need to make a truly informed decision. To discover more about our Red Label program, contact our team via our website or call us at (866) 309-2214.