The private jet provider has created a new membership program designed directly for corporations. It offers six categories of aircraft all at a fixed hourly price, available with as little as six hours’ notice.
Key Features
This Corporate Program offers all the benefits of a typical Magellan membership or jet card, but with nuances for corporate requirements. The key features include:
- Fixed rate access (including fuel) to 6 aircraft categories
- 6-hour call out
- Guaranteed availability
- No peak or black-out days
- Average aircraft age of 10 years or newer
- Simultaneous access to multiple aircraft
- 24/7/365 In-office support (staffed by Magellan's Flight Support team of FAA certificated pilots)
- Guaranteed wi-fi on mid-size aircraft and larger
- Complimentary catering
- Guaranteed recovery
- Monthly reporting aligned with compliance and other organizational requirements
- Quarterly score card meetings to ensure continual satisfaction
John Amato, Vice President, Aviation Consulting Group at Magellan, said it can work for companies in a variety of circumstances. He gave examples of a company buying or selling their own aircraft where the program fits in to fill any potential gaps. Or if a company needs supplemental lift, this program could be an ideal solution. “You could think of it as an insurance policy that includes rental” said John Amato.
Hourly Rates & Fees
There is an initial membership fee to join the program of $25,000, then subsequent annual renewals are $15,000.
The hourly rates start at $6,050 per hour on light jets such as the Phenom 300 or Lear 45XR, and go up to $16,500 on long range jets such as Gulfstream 500/550/650 or Global 5000/6000. As noted in the bullets above, these rates include catering and all fuel costs, but do not include federal excise taxes (FET, currently 7.5%).
The full hourly rates are shown below:
“Our corporate members know the value of getting to critical events in a way that is purely private and on the aircraft that allows them to be most productive,” said Anthony Tivnan, president and co-founder of Magellan Jets. “Whether for an IPO road show or touring manufacturing facilities in hard to reach locations, our team’s experience managing the details allows our members to focus on their business instead of on logistics.”
The 6 hour call time is certainly very aggressive and comparable to the large fractional companies, which typically offer 4 hour notice periods to their owners.