In 1999, Nathan McKelvey launched an online exchange for jet charter pricing, taking an industry that was formerly managed via paper forms into the Internet era. Originally launched as BidJetCharter.com, the firm later changed its name to CharterAuction.com and then acquired its current Jets.com domain name.

McKelvey’s firm, now branded as Jets International, recently announced 1001% growth between 2001 to 2005, from $1.5M in net revenues to $17 million.

BusinessWeek Online recently featured the on-demand charter company as an example of post dot-com bust success stories (article):

After travelers log on to his site at jets.com and enter their desired itineraries, the system sends alerts to plane operators, who then submit bids on the flights. Frequent flyers can put up to $100,000 in an interest-bearing escrow account to pay for their travel and can set a maximum price they are willing to pay for a particular trip. The site also tracks and displays safety and quality-of-service information. McKelvey’s 24-employee company gets a cut of each winning bid.

In 2005, it booked about 3,000 flights and brought in revenues of $17 million. In the past year, Barbara Wolfe has used the site to book seven trips, mostly to the Caribbean. “I used to call several firms and get phone calls or faxes back. It was just too time-consuming,” says Wolfe. “I just love the Internet.” No doubt McKelvey feels the same.

Jets International also offers special rates on one-way trips, citing over 1,300 available deals in a recent newsletter.

Helium Report categorizes Jets International as a “Defined Fleet” broker – a firm that restricts their sourcing to a well-defined network of chater operators. In contrast, an “Open Fleet” broker offers a greater pool of aircraft and relies on the assurance of FAA certification or third-party ratings firms rather than a close business relationship.

To read more about the 8 different business models for private aviation, request our Decision Guide to Private Jet Travel (60-page PDF).