Company Profile: XO JET
XOJet offers on-demand aviation services to individuals and customers in private equity, finance, media and entertainment. Its services include on-demand fixed price charter services and membership programs.
XOJet is a private jet charter company and is owned by TPG Capital and Abu Dhabi based Mubadala, two large private investors. It was founded in 2002 in California with the aim of providing an alternative to private jet ownership for its clients but still provide the flexibility and options that come with owning your aircraft. XOJet is the 3rd largest private jet provider in the United States, the biggest ones being Netjets and Flexjet.
XOJet headquarters are based in Brisbane, California and the company has offices in New York City, Sacramento, San Francisco and Los Angeles. Its current CEO is Bradley Stewart.
XOJet owns a fleet of about 50 Citation X and Challenger jets and through partnership agreements, has access to 1000 more that include Hawkers and Gulfstreams that its Customers have direct access to. The company serves its customers by connecting up to 22,000 airport pairs across North America, including the Caribbean. The business model of XOJet includes owning their own aircraft, which according to them, allows them to offer much lower rates to its clients than the competition.
XOJet offers on-demand aviation services to individuals and customers in private equity, finance, media and entertainment. Its services include on-demand fixed price charter services and membership programs. The membership options include Select Access, Preferred Access, Elite Access and XO Jet Enterprise. Select Access is the entry level program for travellers who usually fly less than 25 hours each year. Preferred Access is the flagship program for those who fly more than 25 hours a year. Elite access is the fixed rate access solution which requires a minimum deposit of $200,000 and provides you the highest level of access to aircraft from 3 categories. They also provide services for private jet ownership and leasing.
XOJet has partnerships with many entities, from luxury resorts to lifestyle companies and airlines, which its members get access to, many times on a trial basis.
History, expansion, and growth
The company was founded in 2002 and today it has about 300 employees with revenues of around $35 million.
While the cost of private aviation has gone down substantially in the past 10 years, it still remains a service for folks with extremely deep pockets or the big corporations. The economics of private aviation can be volatile with a couple of companies like Beacon and Blackjet going bankrupt in 2016. In the beginning and up until 2013, XOJet was offering fares at below cost but that business model wasn’t very sustainable. What started off as flat rate has now disappeared and the rates have since gone up. In 2016, the company declared financial results stating that they had finally turned profitable with 41% increase in EBITDA.
The company has been awarded to be one of the top companies to work for in the SF Bay area and has also been called the one of the fastest growing startup in the United States.