Each month the Department of Infrastructure (their actual title is much much longer) releases data on the aviation industry.
And one report we enjoy reading is the Domestic airline on time performance report.
The Department measure the departure, arrival and cancellation performance of the major airlines along all domestic routes. This gives us key insight as to why we keep receiving phone calls from potential card holders like George.
Pre covid, when Sydney – Melbourne was one of the busiest air routes in the world we witnessed under half of all flights actually arrive on time (scheduled arrival time + or – 15 minutes).
But we felt that’s unfair looking that far back, so we decided to take a look at the January 2022 performance between Melbourne and Sydney, the results didn’t disappoint.
So how did the airlines perform in January 2022?
Even in January 2022, when the airlines desperately wanted your custom, they could barely get you into Sydney on time, cancelling a quarter of flights.
It’s horrid performances like this that destroyed our card holder, George‘s, schedule.
He wanted to fly to Sydney from Melbourne in the morning and hit the ground running meeting as many partners, investors and clients as possible without the need to spend the night away.
And when he was one of the 25% on average having their flight cancelled, his precise schedule was thrown into chaos.
If you travel frequently, even a couple of times a year, George’s story will be very familiar.
A busy self-made entrepreneur with a young family, George needs to travel for his business and put faith in the airlines as flying by private jet felt a little out of reach.
Like all of us, George was up at 4AM to catch the first flight to Sydney.
Trading the good morning cuddles from his kids for the lonely drive to the airport.
Knowing he would miss school drop offs for queuing with random travellers piling into the same plane.
His plan of attack once on the ground in Sydney was precise and had little margin for error.
Only while enroute to be sent an SMS by his airline that the flight to Sydney was cancelled.
That’s it, no “here’s what we’ll do to fix things”, just a recommendation to call the offshore call centre.
George’s day is now destroyed, meetings need to be pushed where possible and and then there’s the hassle and stress rebooking onto a later flight.
This is how the airlines treat their customers.
The very lifeblood that keeps them in the air, are their largest inconvenience.
A product that revolves around you, a company that adores its card holders.
George could book a four seat light jet, with as little as a few hours notice and know exactly what the cost was going to be via the fixed occupied hourly pricing.
He could now arrive into a private lounge 15 minutes prior to departure. No security, no queues, no hassles. Compared to the chaotic airport lounges, the Fixed Base Operator’s lounge was eerily quiet.
A safe, clean, and reliable jet paired with healthy gourmet catering meant George could hit the ground running, meet those prospects, and close more deals.
And the best part?
George could now get those good morning cuddles, leave his home in Brighton at 7AM for a 7:20AM wheels up out of Moorabbin and arrive at his first meeting in Sydney’s CBD by 9:15AM.
It gets better.
By the end of his busy day, George’s jet will be ready to fly him home in time for dinner.
Imagine having a travel platform that works to your schedule, not someone else’s.
Paying by Amex and Crypto, all of George’s flights are 100% carbon offset as part of his hourly rate.
Time is money, can you afford to be left behind by the airlines?
Interstate border restrictions are crumbling on the East Coast.
And there’s a growing number of travellers who don’t want to wear masks or be forced into isolation after a commercial flight is declared an exposure site.
This is why private aviation is the natural alternative.
But in the past deciding who to book with, what jet to select, confusing pricing options and inconsistent experience can really defeat the purpose of the ‘stress-free’ promise.
We’ve doubled our card holders in the last month, have seen a 500% jump in inbound interest and we are adding more value outside of the flying program.
Three reasons ACCESS will be the talk of the summer.
1. Palatable price point
After the annual membership fee, you only pay for the time you’re physically in the jet. This could be half the cost when compared to chartering with another broker.
Whether you’re flying one way, overnight or staying for five weeks it does not impact the fixed, all-inclusive, occupied hourly rate of $3,995 for the four seat Citation Mustang jet.
The way you book ACCESS flights is unmatched. You can utilise our app, WhatsApp, SMS or email.
Then there’s the experience. A streamlined fleet of jets that look and feel the same, the in-flight meals (included in hourly rate) available to/from major airports is clean and wholesome and caters to all dietary restrictions.
Finally, being able to plan your annual travel budget couldn’t be easier. The only variable you need to consider is the flight duration.
3. Additional value
Our card holders join ACCESS for the flying, but stay for the added value.
We’ve secured member-only rates for the best five star hotels in Melbourne, Sydney, Brisbane and the Gold Coast. Members can also receive discounts on our premium Sydney chauffeur as well.
ACCESS members will soon be able to take their card overseas – but more on that at a later date.
We have a huge vision for this program far beyond what you see today, so get in early and enjoy the offering at todays price point.
To maintain sound availability over the summer we will be capping our memberships so if you’re interested in joining the program please reach out via the link below, or apply via the app.
“Wheels up” is a phrase used in aviationto describe the transition from take off landing gear down configuration, to airborne configuration with landing gear, or wheels, retracted. It’s a phrase that evokes progress, speed, and of being on a journey.
Thus, it’s fitting for a pioneer in business and private aviation to be named as such. Wheels Up was founded in 2013 by three New York-based founders. Their founding goal was, and still is, to reinvent private flying through a “revolutionary new business model that delivers the safest, most consistent, and highest -quality aviation solution.” This article explores what that means to members and travellers, the pioneering journey that Wheels Up continues to track, and the company’s leadership in shaping an industry.
“You can’t fail, you pivot.”
Kenny Dichter, Wheels Up Founder & CEO
Wheels Up is a leader in private aviation. And, the brand and legacy it forges only makes sense by looking at its founder, Mr. Kenny Dichter. A successful entrepreneur and businessman, Kenny Dichter made his first millions in 1998 through the sale of his college-founded Alphabet City Sports Records, a label focused on songs often heard in sports stadiums and arenas. In 2001, Dichter co-founded Marquis Jets, the world’s first fractional card private jet program. By 2007, the business was turning over USD700 million per year with 3,500 customers, selling private jet access in 25-hour allotments. That same year, Dichter predicted that Marquis Jets would grow into a billion-dollar business within three years.
In 2010, Warren Buffet’s Berkshire Hathaway subsidiary company, NetJets, acquired Marquis Jet. Marquis Jets’ innovative, accessible, and flexible ‘jet card’ model bolstered NetJets’ fractional ownership business model. Within two years, NetJets proceeded to place the largest aircraft order in private history, for up to 275 Bombardier aircraft, valued at over USD17.6 billion.
“Rule Number One: Never lose money.
Rule Number Two: Never forget rule one.”
– Warren Buffett
Although the 2010 sales terms of NetJets’ acquisition of Marquis Jet weren’t disclosed, it’s probable that Dichter’s 2007 prediction was realised, with NetJets reporting significant sales increase that year. Today, both Marquis Jets and NetJets continue to operate, with the latter the clear private jet fractional ownership industry leader.
Growth
After selling Dichter took a ‘break,’ founding the highly regarded and cult-like Tequila Avión. Pernot Ricard, the premium liquor portfolio company, increased its ownership of the esteemed tequila brand to a majority holding over a few years.
“I thought you were in that Avion Tequila deal?” – HBO’s Entourage
In 2013, Dichter along with two co-founders, returned to aviation entrepreneurship with the launch of Wheels Up. The co-founders simultaneously announced their management team along with a USD1.4 billion order for 105 Beechcraft King Air 350i turboprop aircraft. In disrupting and creating new markets, Wheels Up’s business model was premised on a membership / on-demand business model, servicing non-hub commercial services.
Since founding, Wheels Up has gone from strength to strength in under a decade. Within a year of launch the company had over 1,000 members and close to 40 aircraft (King Airs and Cessna Citation jets), and by 2019 the company had over 5,500 memberships (individual and corporate) and owned nearly 100 aircraft.
Importantly, Wheels Up continues to succeed through challenging the industry’s norms through Dichter’s entrepreneurial attitude, manifested in business model adjustments. Although founded on an entirely new premise of membership-based flying access, in 2018 Wheels Up announced a new flight sharing membership offering, Wheels Up Connect. The goal of Connect was to “democratize private flying” by further reducing the unit cost to access the benefits, efficiencies, and economics of business jet aviation. Despite Wheels Up closing 2020 with 10,995 active members and USD690 million in revenue at the end of 2020, they estimate that “90% of people who can afford to fly privately don’t,” or more than a million people in the US, and forecast their 2021 annual revenue to grow to USD912m
The last several years have seen Wheels Up manoeuvering to capitalise on this untapped blue ocean of private aviation travellers. In 2019, the same year that Wheels Up announced their goal of 16,000 active members by 2021, the company started a strategic acquisition spree to bolster their charter operations and membership management platform. Acquisitions included included the Travel Management Company (TMC Jets); Avianis, a B2B communication platform for operators and brokers; Gama Aviation Signature, the largest Part 135 charter operators in the USA; and Mountain Aviation, the largest Cessna Citation X fleet charter operator in the United States.
The underlying logic behind Wheels Up aggressive growth is simple – the company needs aircraft (supply) to meet the untapped private aviation demand. Dichter told Forbes earlier this year that the company will continue to serve the wholesale market and supply the growing demand for members. To fund this exponential trajectory, Dichter has executed what appears to be an astute two-stage plan.
The first stage saw Delta Private Jets, Delta Air Lines’ private aviation subsidiary, merge into Wheels Up and bringing Delta’s 70 aircraft into Wheels Up’s fold in 2020. This merger saw Delta Airlines take a majority stake in Wheels Up, and granted them a board seat.
The second stage of strategic funding is a shrewd twist on Dichter’s previously reported preference to pursue an initial public offering (IPO). In February, the company announced a special-purpose acquisition company (SPAC) merger with Aspirational Consumer Lifestyle Corporation. By merging with a SPAC, Wheels Up is expecting to achieve an “enterprise value of about USD2.1 billion,” and cash proceeds of USD790 million, without negotiating the traditional IPO process.
The winner is…
Having a successful, proven, serial entrepreneur in Kenny Dichter, who is clearly passionate about general and private aviation, and recognises its unrealised potential, is an incredible opportunity for the industry. Travellers benefits through new and more accessible means of transport, at improved value; while the aviation industry benefits from positive disruption, bringing about improvements and progress.
Wheels Up are an industry leader, and Kenny Dichter an incredible change agent.
The changes come along with price increases to the entire network. These were necessary to help combat rising costs, less-predictable demand and to help activate more private jet flights in a shared environment.
Fly to Adelaide by private jet
As a result of the changes we have included Adelaide and Cooma as new destinations.
Adelaide will be accessible from Melbourne and Sydney airports.
Cooma will be a seasonal option from Sydney perfect for Winter.
To take advantage of these changes you need to be part of Airly’s SHARED program.
First of all download and register the Airly private jet app. Then you can apply for membership.
Airly is proud to announce more than 300 members have now joined our SHARED program. This program is Australia’s first and only private jet membership.
About Airly’s private jet membership
Launched in 2019 the SHARED program enables members to initiate or opt into shared flights onboard private jets for the cost of business class.
Members are free to initiate the flights they need via the Airly private jet app at no cost. Once a flight is initiated the alert goes out to others on the SHARED program and invites them to opt in.
Routes along the SHARED network include Sydney – Melbourne, Sydney – Ballina / Byron Bay and Sydney – Gold Coast.
With ongoing border instability we’ll be launching new seasonal routes in the future including Sydney – Cooma, Melbourne – Mount Hotham and Brisbane – Hamilton Island.
The perks of the SHARED program are best described by Lee Teirney, one of our first SHARED members, who loved the concept so much he joined the team in 2020 as VP of Membership and Experience.
As an Airly member having access to shared flights meant that I could have the convenience of flying private for a fraction of the cost, and non of the hassle of a crowded Airport. Also having the opportunity to meet a wide range of like minded people.
Lee Teirney – SHARED member and now VP Membership & Experience
We’re thrilled to be working on a new product that will completely revolutionise private jet charter. The introduction of this new product will also have benefits for members on the SHARED program as well.
After facilitating 11 flights in 2020 we want to see more members initiating flights, and most importantly, activate at least 4 SHARED flights per month.
To learn more about our SHARED program click here.
While the travel industry has taken a massive hit from the coronavirus pandemic, the number of people using Aussie private jet startup Airly has risen.
Airly, which launched in 2016, is an app-based service where members can book flights on a private jet – either by opting-in to an existing flight, or initiating a new one.
Co-founder Luke Hampshire told Business Insider Australia the service had been busy during the fourth quarter of 2019 until the bushfires hit and travel started declining. Then the coronavirus pandemic struck, initially causing a decline in usage.
But, in recent months, that has changed. Hampshire said usage on the app is up 80%, with the company doubling its membership numbers over the last three months.
Hampshire said flights over the past two weeks have been above average with June “looking very busy”.
“We’re in one of the best positions globally from the COVID perspective,” Hampshire said. “We’re very nimble. We’re able to move quickly, we see the demand, we see the interest [and] we can apply that model to what’s required. Whereas the airlines are slow-moving. They have a lot of assets, they have a lot of moving parts that take time to scale up.”
How Airly works
Hampshire describes Airly as a service that merges the perks of private travel with the predictability of commercial flights. “The big goal has always been how can we make private [flights] accessible and affordable to more sophisticated travellers,” he said.
Airly doesn’t require users to pay ongoing membership fees.
“We don’t want people paying for not using us,” Hampshire said. “So basically we can get members in now with no ongoing fees, let them check the app out, let them initiate a flight risk-free, get them on board and get them flying.” It was a decision the company made once the coronavirus pandemic set in, as a new way to provide value for its members.
Once you download the app and apply for membership, you get to either opt in for an existing flight or initiate a flight.
“What happens is that it sends out a notification to all the other members that the flight’s been initiated,” Hampshire explained. “The big difference for us is that you’re not paying for the whole jet, you’re just paying for what you need. And then we rely on other members to get on board, get involved and to book as well.”
Cost-wise, a flight from Melbourne to Sydney or Sydney to the Gold Coast flight costs $1295 a seat each way.
Most of Airly’s customers are business owners
Airly isn’t a scheduled operation. The company had considered it as a business model in the past but never went ahead with it.
“What we feel is the best option is to let our members decide when they need to go,” he said. “Ironically, they tend to be at similar times, which is helpful. It means you can get more than one group of members on a round trip.”
“Members who didn’t know each other prior to the flight actually become strong connections by the end of the flight,” Hampshire added.
Most of Airly’s current customer base are business owners. “Essential travel hasn’t stopped,” Hampshire said.
He explained that there was a period of time during the start of the pandemic when everyone was isolating – something Airly was advocating for as well. No one was flying through March and part of April before travellers started returning, especially business owners who have to travel to each of their business locations.
“It’s quite a contrast to everyone expecting work from home and Zoom to take over,” Hampshire said. “We’re still seeing those business owners needing to get from A to B.”
As a charter flight company, Airly is capable of doing global flights, including repatriation trips all the way from Europe. However, the company’s core focus is its shared flights – mainly from Sydney to Melbourne.
While Airly can provide charter flights for one-off destinations, its shared flights aim to capture the most popular routes. They do seasonal flights to destinations like Byron Bay and the Sunshine Coast, as well as options later in June for the snow season.
The company considers itself a supplementary service rather than a competitor to commercial airlines
Airly has coronavirus preventative measures in place
Airly uses the Embraer range of aircraft – a four-seat option called a Phenom 100 and the eight-seater Phenom 300. Hampshire said having these planes provides consistency for passengers because “we don’t want to be throwing 10 different aircraft at members.”
The eight seat Phenom 300
“They’re the perfect jet for us,” Hampshire said. “They’re capable of carrying a lot of luggage, they’re extremely economical, they’re the most carbon efficient jet available in Australia and it’s just a very comfortable ride for your one to two to three-hour flights.”
Hampshire also went through the measures Airly is taking to prevent coronavirus on flights.
Each passenger is required to provide a 14-day travel history before the flight. On the day of the flight, there are temperature checks at the door, and passengers are encouraged to use hand sanitiser. On shared flights, you’ll be required to use face masks, especially when there’s more than one group of members boarding.
While Airly had under 100 members for “a long period of time” through 2019, it now has more than 180 members. It wants to become the first point of call for people looking for a flight.
“The big goal now is to aggressively expand with our investors and keep increasing flights and as borders open we get Australia moving,” Hampshire said. “Right now it’s business travellers [and] we can’t wait until we can start moving leisure travellers around again.”
Airly’s vision has always been to make private jet travel more accessible and affordable.
Unfortunately some things about COVID-19 are here to stay for a while, hand washing, hand sanitiser, social distancing, DYI projects, work from home and restricted travel options.
On the other hand, restrictions are easing and if the furthest you have travelled in recent days is the letterbox, no doubt some of you are itching to get going and get your business moving again.
What precautions can you take to ensure you stay safe while travelling?
Wearing a mask on planes
Temperature checks at airports
Social distancing on planes such as buying a second seat
Cleaning your seat armrests and tray tables
Travel on a private jet for the same price as business class.
Our new membership structure makes private air travel more affordable so you can.
Upgrade to an Airly Membership in-app now with no ongoing fees.
In these uncertain times our new private jet membership with no ongoing fees gives you something to rely on.
With Virgin under a cloud and Qantas operating at 5% of its pre-pandemic capacity commercial flights are scarce, making it hard for you to get to where you need to go to get your business up and moving again.
A membership with Airly gives you access to shared flights on private jets across the eastern seaboard at a price that is comparable with business class.
To support Australian businesses we are waiving all membership fees until July and our new membership structure will have no ongoing fees.
So whether you need travel for yourself or for your entire team Airly will have a private flight solution for you, from single seats to a whole plane.
To learn more about our membership click the image below.
And if you think our program is perfect for you, apply in-app!
