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Halogen Guides : Jets

Flexjet Expands Range, Eliminates Fees


Bombardier Challenger from JimNtexas via FlickrIn a move the company billed as a “double-value enhancement for clients,” fractional private jet provider Bombardier Flexjet has expanded its secondary service area (SSA) and eliminated aircraft remarketing fees.

Flexjet’s primary service area (PSA) is the area (continental U.S. and a 200-mile radius surrounding it) in which Flexjet owners may fly their jets without any added positioning costs. Flexjet owners may buy into an additional program which opens up the secondary service area, where members can fly without incurring any ferry fees. Ferry fees are designed to absorb the cost of repositioning aircraft and crew away from their home base. Flexjet’s original SSA included Mexico, the Caribbean and parts of Canada. The expanded SSA includes all of Canada and Central America, which means that Flexjet owners will be able to fly to destinations as far afield as the Yucatan or the Yukon Territory without added ferry costs. Flexjet owners of Challenger jets can additionally fly to Hawaii and Europe, without accruing additional ferry fees. Flexjet’s fee waiver program follows on the heels of industry leader NetJets, who made headlines last year with a similar program.

One of the banes of fractional jet ownership has been the costs associated with selling a share back to the provider at the end of the contract period, typically five years after the purchase. In addition to the money lost due to the inevitable depreciation of the aircraft, providers charge what can be a hefty remarketing fee as well. The fee, which goes towards defraying the provider’s costs of returning the jet to inventory, typically amounts to four to seven percent of the fair market price of the aircraft.

All Flexjet owners who bought fractions after April 1 of last year are now free to sell back their shares without a remarketing fee, whether they are at the end of their contract or choose to sell off early. Flexjet is the first, and as of now the only, provider to eliminate these remarketing fees entirely. It is expected, however, that other fractional providers will now be under pressure to follow suit.

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