Extremely interesting and exciting stuff on AmEx's WishList this year...

http://mywishlist.amexnetwork.com/in...il-taf-teaser#

Interesting how the MSRP on the flight is showing $171,367. If that's how much it is to operate one flight, the break even point at 150 seats would be $1142.45 per ticket. A round trip would reduce it to $571.22 per ticket per flight.

Is it just me or does that MSRP seem rather high?

Nevertheless, still something cool to win.

saw that the other day... how did they estimate the value to be: $171,367

--Russ

I'm glad it doesn't make sense to some one else. The numbers I showed above were just the breakeven point based on the $171,367. Now, if the profit is built in, those are still pretty high price tags on seats, still. Then again, like you said Russ, what is it based on?

The cost of operating would obviously vary depending on flight duration/destination/fuel load/etc. Additionally, we are not so sure what that prize includes. The $170,000+ figure, which does seem high, might include a built-in vacation at a 5-star property for x amount of people. This holiday promo from AmEx has always been cool, but I never paid much attention to it. This year, I will be watching it much more closely!

$171,367 isn't necessarily the cost of operating the private flight, it's the MSRP (Manufacturer's Suggested Retail Price), basically what they think they should get for it - definitely with profit wrapped in there. Companies do this all the time - come up with prices that their goods/services should be valued at for prize valuation purposes. And it's not considered 'false advertising' or whatever because this particular service doesn't have a public market for it, and therefore, an artificial price can be set (for instance, this wouldn't work if it were a TV or something, because there's published prices of TVs...not for private B6 flights). In fact, it may even be an advertising thing, so they can say to potential customers who want a private trip (media, sports teams, etc...) - 'look, see! american express values it at this price! we can't charge you less than that...'

They actual cost of the flight is much likely much less than that, and would obviously vary depending on where the trip goes (fuel costs, crew time, repositioning costs, etc...).

you beat me by a few seconds with your post... not sure what its based on, but I doubt that a vacation at a 5 star hotel is included, they would have mentioned it on the site as they normally do, jetBlueNYFL.


I've tried the Amex Wish List a few years ago when they had a BMW Z4 for $5k... needless to say I'm still driving a Ford today.

--Russ

If this is unlimited (fly anywhere) then I assume you estimate the maximum value, the costing of that would require a great deal of financial assumption. A private flight from NYC to BOS would probably be a great deal less than SEA to FLL. You would have to think this is costed to allow the flexibility to fly anywhere JetBlue flies.

Welcome to FT! You pose a very good point in regards to what territory the free flight would cover. I would assume anywhere in the jetBlue system.

I'm still trying to figure out if this is a sweepstakes or one of those bidding things.

You all are definitely right about the destinations and what's included with the "MSRP" package, sadly I cannot shed any light on this. What I do know is that there are pricing guidelines on chartering an E190 or A320 for a flight, but the cost is much closer to the actual cost of the flight.

Typically a prize of that value will come with a 1099 to the IRS for the MSRP. Even if you claim to the IRS that the value is only $100,000 there are still taxes for whichever tax bracket you're in that would need to be paid.

You would have to be insane to go on the Jetblue private jet.
You'll be paying taxes out of your #$%

OK, this helps explain it, here are the T's and C's.
The $171,367 number includes $60K to help offset taxes.


One (1) �JetBlue Airways Private Flight� (�JetBlue Prize�). JetBlue Prize includes a roundtrip coach class flight for up to 150 passengers on JetBlue Airways (�Flight Prize�). Approximate retail value (�ARV�) of Flight Prize is $111,367.00, depending on place of departure, destination, and flight dates. Winner is responsible for state and federal income taxes that apply to the JetBlue Prize, as well as air taxes and fees noted below. $60,000.00 will also be awarded to help offset expenses and taxes on the JetBlue Prize. Total ARV of JetBlue Prize is $171,367.00. Flight Prize is subject to applicable laws, regulations, and operating authority as required by the Federal Aviation Administration, Department of Transportation, and any applicable foreign country. Winner must execute standard JetBlue charter contract before Flight Prize will be awarded. Failure to agree to terms and execute contract will result in forfeiture of Flight Prize. Winner is not permitted to sell seats or otherwise accept consideration for seats on Flight Prize. Flight Prize must originate from an airport served by JetBlue (excluding airports served by Codeshare or Alliance Partners) to any other airport served by JetBlue within 2,700 statute air miles. No stopovers are permitted except for JetBlue operational reasons. Flight must be booked at least 60 days prior to desired date of scheduled departure. The flight must be completed no later than November 19, 2008. The following blackout dates apply and travel may not take place on those dates: February 14, 2008-February 24, 2008, March 13, 2008�March 31, 2008, April 17, 2008�April 27, 2008, June 20, 2008�July 14, 2008, July 15, 2008�August 18, 2008. The outbound and return flights must be no more than 7 days apart. Once flights are booked, Winner may not make any changes to the flight schedules. If Winner cancels outbound flight, return flight, or entire roundtrip flight, Winner forfeits all rights to Flight Prize and Flight Prize will not be rescheduled although the remainder of the JetBlue Prize will be awarded. All flights are subject to aircraft availability. Flight will be operated at JetBlue�s sole discretion using an Airbus 320 or an Embraer 190 depending on the number of passengers, aircraft availability, and operational reasons. JetBlue reserves the right to substitute different aircraft at any time depending on operational needs. Winner agrees that JetBlue�s Contract of Carriage, Tariffs, and charter contract will apply to Flight Prize. If Winner books flight to an international airport served by JetBlue, each passenger is responsible for (a) paying taxes, including Passenger Facility Charges of up to $9.00 each way, September 11th Security Fees of up to $5.00 each way, a Federal Segment Tax of $3.40 per domestic segment (a segment is a takeoff and landing) and international government fees and taxes of up to $75.90 each way depending on the destination; (b) complying with all requirements regarding documentation (passport, visa, etc.), and (c) providing to JetBlue at least two weeks in advance of the outbound scheduled flight required information for Advance Passenger Information Screening for U.S. Customs and Border Patrol. Failure to comply with any of these requirements or applicable laws or regulations will result in JetBlue denying boarding and may result in forfeiture of Flight Prize. Standard JetBlue provisioning (assorted snacks and drinks) will be provided. Alcohol is provided to passengers 21 years of age or older at an extra cost to the passenger. Extra catering is not included. Flight Prize flight is not eligible for TrueBlue Points, denied boarding compensation, or compensation under the Passenger Bill of Rights. Winner and guests must have all necessary identification and/or travel documents required for travel. If any of the Winner's guests is a minor, he/she must be accompanied by parent or legal guardian who must sign and return all required documentation. As a condition for travel, Winner must return to Sponsor a Release of Liability provided by Sponsor, executed by each passenger (or if a passenger is not of the legal age of majority in his/her state of residence (�minor�) their parent or legal guardian) within 10 days of booking the Flight Prize and prior to ticketing.

Kudos for the cash included to cover taxes. Certainly removes the taxman's bite for winning the prize.

It certainly also makes the MSRP a lot more reasonable also.

Certainly a cool prize and a great way to impress your friends.