Booming business at Flexjet
Fractional ownership company Flexjet has experienced positive 2016 performance results, including a 20% surge in new business in 2016 when compared to 2015. According to a company statement, 2016 also brought significant increases in both referrals and owners coming to Flexjet from its competitors.
Flexjet CEO Michael Silvestro believes this success is in part to be attributed to the company’s recent introduction of the Red Label offering, “which features flight crews dedicated to a single aircraft, highly distinctive artisan interiors and the world’s youngest fractional jet fleet.” He adds: “We are especially enthused that much of our growth has come from owners who formerly were customers of other fractional providers, as well as referrals by existing Flexjet Owners to their friends and colleagues, validating the fresh approach and innovations we have brought to the fractional private jet industry.”
Among the key results in 2016:
- New to the Flexjet family: Business from customers completely new to Flexjet was up 20%
- Record conquest sales: Half (50%) of new business in 2016 came from customers who previously patronized another fractional private jet provider, the highest level ever for such “conquest sales”.
- Referrals up: In the ultimate validation, business generated through referrals from existing Flexjet owners grew 23% in 2016 versus 2015; in addition, owners joining as the result of a referral increased the number of hours they purchased by 60% in 2016.
- Red Label success: One-third (33%) of all Flexjet Owners are now flying under the Red Label by Flexjet premium offering, which launched only in Q4-2015.
Also read: Fifth Platinum rating for Flexjet
- Large Cabin Popularity: In 2016, 100% of the hours available on Flexjet’s fleet of Gulfstream G450 large-cabin aircraft were sold; this paves the way for further G450 deliveries in 2017 as well as new additions to the fleet, including the ultra-long-range Gulfstream G650 in late 2017 and the large-cabin Gulfstream G500 in 2018.
- New aircraft deliveries continue: Flexjet continued to accept deliveries of new aircraft in 2016; in the past 36 months, it has received 55 new aircraft from Gulfstream, Bombardier and Embraer. Deliveries in 2016 included the company’s first Embraer Legacy 450, an aircraft Flexjet introduced to the fractional industry. The Legacy 450 will be the backbone of a midsize-cabin program that is seeing an increase in demand alongside the Bombardier Challenger 350 super-midsize-cabin offering.
Another factor in Flexjet’s success in 2016 was the opening of the first of many Flexjet-exclusive private terminals. The launch facility, at Naples Municipal Airport in Naples, FL, serves Flexjet owners flying in and out of Southwestern Florida. It provides a variety of amenities including sheltered and shaded parking spaces, conference rooms, private workspaces and Wi-Fi access. A second private terminal will open at Westchester County, NY, early in 2017, and others are planned throughout the country.