Private Jet Access Cards

Jesse Itzler describes creating a private jet membership model that found a gap between full ownership and charter flights. The model offered 25-hour jet cards that worked like debit cards for private jet access, partnering with NetJets to use their planes.

Key Points:

• Market Gap Identified:

  • Only 2-3 ways existed to fly private in the 1990s:
    • Buy your own plane ($50M+)
    • Join fractional programs (5-year commitment)
    • Charter flights (questions about reliability/safety)
  • Found white space for people wanting ~25 hours/year without ownership commitment

• Business Model:

  • Sold 25-hour jet cards working like debit cards
  • Initially leased time on NetJets planes with no long-term commitment
  • As company grew to 4,000 members, began buying own planes
  • Average customer spent $235-250k per year

• Partnership Strategy:

  • Partnered with NetJets who owned/operated planes
  • Started as pure marketing organization with markup on hours
  • No risk as NetJets carried all initial paper/capital requirements
  • Evolved to buying own planes once cash flow established

• Growth:

  • First year revenue ~$200M
  • Grew to $1B+ annual revenue
  • Expanded to 4,000+ members
  • Eventually sold to Berkshire Hathaway/NetJets