Apr 16, 2016, 7:33 am
Last edit by: elitetraveler
JetSmarter is a membership program that allows members to fly on empty legs of private jets (JetDeals) and seats on scheduled private jet shuttles (JetShuttle).
JetSmarter - discussion and experiences
Mar 6, 2019, 10:51 am
#2387
Join Date: May 2013
Posts: 637
I imagine it is just going to be a really lean app company now that can live on for a while with no real use. A few empty legs here and there, a few shared charters, not much else.
Compared to the cash they were hemorrhaging running coast-to-coast charters, they really just need to pay for the tech now if they keep it as is.
Obviously nobody is going to renew memberships, and lawsuits are the big x-factor that could sink the ship.
It just occurred to me that the rare shared shuttle they pull off is wildly lucrative for them. The creator pays full price for the charter, then each additional seat is sold for cash. So in the case of a full shared shuttle (rare) they are likely making 300% margins or more, in exchange for issuing largely worthless "jetsmarter credits." So if they pull of a few of those, a few charters (in all honestly, the app is very easy to use for charters), and maybe a few poor saps renewing their membership, then they can probably chug along for a while.
Compared to the cash they were hemorrhaging running coast-to-coast charters, they really just need to pay for the tech now if they keep it as is.
Obviously nobody is going to renew memberships, and lawsuits are the big x-factor that could sink the ship.
It just occurred to me that the rare shared shuttle they pull off is wildly lucrative for them. The creator pays full price for the charter, then each additional seat is sold for cash. So in the case of a full shared shuttle (rare) they are likely making 300% margins or more, in exchange for issuing largely worthless "jetsmarter credits." So if they pull of a few of those, a few charters (in all honestly, the app is very easy to use for charters), and maybe a few poor saps renewing their membership, then they can probably chug along for a while.
Mar 6, 2019, 1:26 pm
#2388
Join Date: Mar 2018
Posts: 21
The only membership option is now $2,500 a year. It is now a charter market app with a chance of a few shared shuttle options / empty legs from TMC/XO. Similar to what Wheels Up just launched. As a business it makes a lot more sense then before as everything is paid - to me the membership isn't worth it but it is good to keep an eye out on charter flights as the "instant booking" options with TMC or XO are still decently priced and you do not need to be a paying member to book.
Apr 7, 2019, 12:51 pm
#2390
Join Date: Apr 2006
Posts: 469
I’d also recommend you read the Supreme Court’s opinion in Oxford Health Plans LLC v. Sutter, 569 U.S. 564, 573 (2013), specifically Justice Alito’s concurrence:
With no reason to think that the absent class members ever agreed to class arbitration, it is far from clear that they will be bound by the arbitrator’s ultimate resolution of this dispute. Arbitration “is a matter of consent, not coercion,” Volt Information Sciences, Inc. v. Board of Trustees of Leland Stanford Junior Univ., 489 U. S. 468, 479 (1989) , and the absent members of the plaintiff class have not submitted themselves to this arbitrator’s authority in any way.
***
The distribution of opt-out notices does not cure this fundamental flaw in the class arbitration proceeding in this case. “[A]rbitration is simply a matter of contract between the parties,” First Options of Chicago, Inc. v. Kaplan, 514 U. S. 938, 943 (1995) , and an offeree’s silence does not normally modify the terms of a contract, 1 Restatement (Second) of Contracts §69(1) (1979). Accordingly, at least where absent class members have not been required to opt in, it is difficult to see how an arbitrator’s decision to conduct class proceedings could bind absent class members who have not authorized the arbitrator to decide on a classwide basis which arbitration procedures are to be used.
Apr 9, 2019, 2:59 pm
#2392
Suspended
Join Date: Oct 2006
Location: New York, NY
Posts: 557
Some info and questions about how the credits work - it seems they might be usable on JetSuiteX - although not really clear
How do the Resolution Credits work?
Resolution Credits are reserved for Sub-Class 3 and 3A members. Sophisticated Members of the Class can use Resolution Credits for up to 50% of the total cost of a seat purchased on a “confirmed shared flight.” There’s maximum utilization of $6,000 for any single transaction.
The next sentence (below) states “Smart or other types of members can use the Resolution Credits for up to 50% of the total cost of a seat purchase, subject to a maximum of $3,000 for any single transaction.” This seemingly also refers to use on “confirmed shared flights” although it doesn’t necessarily say that.
How many Resolution Credits will you get?
Resolution Credits are based on the number of days remaining for your membership on June 18, 2018. The document sites as an example, if a member paid $10,000 for their annual membership and there were 180 days remaining, they would be entitled to $5,000 in Resolution Credits.
For somebody who paid $90,000 for a multi-year membership and 90% of their membership remaining at that point, they would receive $81,000 in Resolution Credits.
What’s a “confirmed shared flight?”
I’m glad you asked. The term “confirmed, shared flight” doesn’t necessarily correspond directly to how flights are described on JetSmarter’s website.
For example, once a crowdsourced flight is confirmed, since it is a shared flight, is that then a “confirmed shared flight” eligible to use resolution credits? Are the JetSuiteX flights eligible?
If the answer to either is yes, it significantly expands the inventory of flights you could redeem the 50% discount that the Resolution Credits provide.
Source:
https://privatejetcardcomparisons.co...ration-filing/
How do the Resolution Credits work?
Resolution Credits are reserved for Sub-Class 3 and 3A members. Sophisticated Members of the Class can use Resolution Credits for up to 50% of the total cost of a seat purchased on a “confirmed shared flight.” There’s maximum utilization of $6,000 for any single transaction.
The next sentence (below) states “Smart or other types of members can use the Resolution Credits for up to 50% of the total cost of a seat purchase, subject to a maximum of $3,000 for any single transaction.” This seemingly also refers to use on “confirmed shared flights” although it doesn’t necessarily say that.
How many Resolution Credits will you get?
Resolution Credits are based on the number of days remaining for your membership on June 18, 2018. The document sites as an example, if a member paid $10,000 for their annual membership and there were 180 days remaining, they would be entitled to $5,000 in Resolution Credits.
For somebody who paid $90,000 for a multi-year membership and 90% of their membership remaining at that point, they would receive $81,000 in Resolution Credits.
What’s a “confirmed shared flight?”
I’m glad you asked. The term “confirmed, shared flight” doesn’t necessarily correspond directly to how flights are described on JetSmarter’s website.
For example, once a crowdsourced flight is confirmed, since it is a shared flight, is that then a “confirmed shared flight” eligible to use resolution credits? Are the JetSuiteX flights eligible?
If the answer to either is yes, it significantly expands the inventory of flights you could redeem the 50% discount that the Resolution Credits provide.
https://privatejetcardcomparisons.co...ration-filing/
Apr 10, 2019, 4:27 am
#2393
Join Date: Mar 2018
Posts: 21
Looks like the rumors were true with Vista buying JetSmarter:
https://www.bloomberg.com/news/artic...=technology-vp
https://www.bloomberg.com/news/artic...=technology-vp
Apr 10, 2019, 9:11 pm
#2395
Suspended
Join Date: Oct 2006
Location: New York, NY
Posts: 557
Is it possible that Clearlake, or whatever the fund that owned JetSmarter may have indemnified Vistajet? It would be hard to understand why you would buy a company with lots of potential liability, especially for a billionaire. I would think some lawyers are happy. Much better to sue a billionaire instead of a company that was nearly bankrupt?
Apr 17, 2019, 11:02 pm
#2397
Join Date: May 2013
Posts: 637
On another note, I feel like Vista is testing the price sensitivity for empty legs. Example: TEB-Antigua on a global right now for $4k/hr. Far less than most that hover around $9k/hr.
Or or it could just be mistake...
Apr 17, 2019, 11:23 pm
#2398
Join Date: Mar 2018
Posts: 21
I would guess they wanted the app technology so they can finally release the XO branded app. If they just bought the technology and combined it with XO it makes a ton of sense. Overnight they have the technology platform to compete with wheels up etc with on demand bookings / crowdsourcing flights and own the fleet to offer guarantee service and availability / customer service.
Apr 18, 2019, 2:00 pm
#2399
Join Date: May 2013
Posts: 637
I would guess they wanted the app technology so they can finally release the XO branded app. If they just bought the technology and combined it with XO it makes a ton of sense. Overnight they have the technology platform to compete with wheels up etc with on demand bookings / crowdsourcing flights and own the fleet to offer guarantee service and availability / customer service.
Apr 18, 2019, 8:50 pm
#2400
Suspended
Join Date: Oct 2006
Location: New York, NY
Posts: 557
Sometimes if you are raising money or want to do an IPO buying a company that fills a gap in your portfolio is a good, short term solution.