XOJET closed 2017 with an impressive nine percent increase in revenue to cap off five years of unprecedented growth.
Chairman & CEO Brad Stewart attributed the strong performance to the company’s intensive focus on three core business competencies: its branded client franchise, the network algorithms and capabilities XOJET uses to optimally deploy its fleet, and its industry-leading flight operations. “We have spent the last few years building our capabilities in each of these core areas of expertise,” said Stewart “they are the foundation for XOJET’s continued expansion.”
Branded Client Franchise
On July 1, 2017 XOJET unveiled XOJET Access Solutions, a new suite of membership programs and one of the most successful product launches in its history. By the end of the year the firm had surpassed its target for new members by nearly 50 percent, underscoring the value clients place on XOJET’s unique model of providing transparent advice and personalized service.
Access Solutions membership opens up an array of privileges through XOJET’s marquee brand partners. In 2017 the company added exclusive member benefits with Pinehurst Resort, Mandarin Oriental, The Private Suite at LAX, Private Medical, Peter Millar, Canyon Ranch and Hertz.
Reflecting XOJET’s positioning as a full service on-demand platform, the charter brokerage expanded by over 30% compared to the prior year. To support this burgeoning demand, the company extended its roster of operating partners to reach over 1,300 approved private jets, adding capability in light, mid and large-cabin aircraft as well as extending geographic coverage throughout North America and Europe.
To better serve its clients in the Southeastern region, XOJET also opened a retail office in Palm Beach, bringing its number of countrywide retail offices to four.
“We have invested heavily in the commercial operation, our vendor network and brand partnerships over the last 18 months,” said James Henderson, chief commercial officer. “The growth of our membership base and surge in charter brokerage are a direct result of this and we expect significant expansion again in 2018.”
The company will launch a new XOJET Elite Access guaranteed rate membership program in first quarter 2018.
Throughout 2017 XOJET’s adoption of artificial intelligence developed in partnership with Noodle.AI greatly improved its dynamic pricing, aircraft utilization and fleet efficiencies. In particular, the demonstrated increase in fleet utilization has further advanced XOJET’s position as the highest utilization operator in private aviation, according to Argus International. “The network advantage supported by our institutional capabilities and machine learning is a true competitive edge,” said Austin Schell, president of fleet operations. “It extends our lead as one of the few at-scale, networked, on-demand operators.” XOJET will continue to invest in advanced analytics and cutting-edge forecasting.
In May 2017 XOJET completed its milestone 200,000th flight after eleven years in operation. Underscoring the company’s uncompromising commitment to safety, the firm doubled the size of its Flight Standards Department to 35 standards captains and eight check pilots and hired new directors of flight standards and safety. XOJET also developed advanced pilot training programs and is the first Part 135 operator in the private aviation industry to implement the Federal Aviation Administration’s Line Operations Safety Assessment program.
The firm also recently completed the purchase of two Citation X aircraft and is planning to expand the fleet with additional aircraft acquisitions in 2018.
“We have built a client service franchise and fleet operation backed by state-of-the-art network algorithms that make us one of the most sophisticated, efficient and profitable companies in the industry,” said Brad Stewart. “The result is a robust, highly scalable private aviation business well-positioned for growth.”
In order to best position XOJET for continued growth and expansion, Perella Weinberg Partners has been engaged as a strategic advisor to explore a range of options that may include a capital raise, merger, sale of the company or a strategic alliance.