THAT MIGHT BE WORSE THAN WE
THOUGHT.
EITHER WAY, WE HAVE RED HOT
INFLATION, AND THAT FORTUNATELY
DIDN’T STOP US FROM TRAVELING
AND TAKING VACATIONS THIS
SUMMER.
THERE’S A NEW REPORT FROM SKIFT
AND FOUND 53% OF TRAVELERS FLEW
OR DROVE TO THEIR VACATION IN
THE MONTH OF JULY AND NEARLY 60%
OF AMERICANS ARE PLANNING A
VACATION SOON.
BUT THE COMMERCIAL AIRLINERS
CAN’T CATCH A BREAK.
THE PILOT AND AIR TRAFFIC
CONTROLLER SHORTAGES CAUSING
MAJOR DELEAVES AND CANCELLATIONS
ALL SUMMER LONG -- DELAYS AND
CANCELLATIONS ALL SUMMER AND
TRAVELERS ARE ANNOYED AND
COMPLAINTS ROSE 270% ABOVE
PRE-PANDEMIC LEVELS.
THEIR PAIN IS SET JET’S GAIN.
SET JET IF YOU NEVER HEARD OF
IT, MEMBER ONLY PRIVATE CHARTER
JET SERVICES AND BEING BOOKED
SOLID FOR THE LAST COUPLE MONTHS
AND MEMBERS BOARD THE JETS AND
CARRY UP TO 16 PASSENGERS FOR AS
LITTLE AS $99.95 A MONTH.
JOINING ME NOW ON A FOX BUSINESS
EXCLUSIVE IS THE SETJET
COFOUNDER AND CEO TOM SMITH.
TOM, $100 A MONTH, THAT’S IT?
THEN THE COST OF THE FLIGHT;
RIGHT?
>> THAT’S CORRECT.
THAT’S JUST THE MEMBERSHIP FEE
AND THEN IT’S -- YOU HAVE TO BUY
A SEAT ON THE PLANE AND THAT’S
ABOUT $760 FOR OUR SHORT HOPS
HERE BETWEEN THE SOUTHWEST OF
ARIZONA, SOUTHERN CALIFORNIA AND
NEVADA.
LAUREN: THAT’S NOT THAT BAD.
SO IS THAT ONE OF THE REASONS
CAUSE IT’S AFFORDABLE AND YOU
DON’T HAVE TO DEAL WITH ALL THE
HEADACHES YOU’RE SO POPULAR NOW
AND HAVE A BIG WAIT LIST?
>> CORRECT.
BECAUSE WE’RE ACTUALLY GIVING
PEOPLE TIME BACK BECAUSE YOU CAN
SHOW UP 20 MINUTES BEFORE THE
FLIGHT, GET TO TRAVEL IN A
LUXURIOUS LARGE CABIN AIRCRAFT,
$570, YOU’RE NOT SPENDING
MILLIONS TO BUY A PLANE AND TENS
OF THOUSANDS FOR A CHARTER AND
SIMILAR TO FIRST CLASS PRICING
AND GET AN UNBELIEVABLE
EXPERIENCE FLYING OUT OF PRIVATE
TERMINALS ON LUXURIOUS AIRCRAFT
WITH OUR CABIN HOSTESSES AND
IT’S AN AMAZING BUSINESS MODEL.
LAUREN: WHAT ARE YOUR MOST
POPULAR ROUTE S?
>> THE MOST POPULAR ARE SOUTHERN
CALIFORNIA AND LAS VEGAS AND
THEN SURPRISINGLY IS KANSAS CITY
CHIEFSCA BO EVENTHIS TIME OF YEA
FROM LA AND SCOTTSDALE PEOPLE
ARE WANTING TO GET OUT AND IT’S
ALL THIS PENT UP DEMAND FOR
PEOPLE WANTING TO TRAVEL AND
FRUSTRATING GOING COMMERCIAL AND
IT WAS A GREAT OPPORTUNITY FOR
US AND TO SEE THE PEOPLE AND THE
MEMBERS COMING AND WANTING TO
TRAVEL WITH US, IT’S REALLY BEEN
A BOOM FOR US AND PROVIDING THIS
KIND OF LEVEL OF SERVICE IS
UNPRECEDENTED SO WE’RE REALLY
TRANSFORMING THE INDUSTRY.
LAUREN: WOULD YOU SAY THAT YOUR
CLIENTELE IS INFLATION DOESN’T
REALLY AFFECT THEM BECAUSE THEY
HAVE ENOUGH MONEY TO GO AROUND?
AND I ASK THAT WITH RESPECT TO,
I BELIEVE YOU PUT IN A FUEL
SURCHARGE.
IF THAT’S THE CASE, WHAT WAS THE
REACTION TO IT BY THE TYPE OF
CUSTOMER THAT YOU FLY?
>> CORRECT, YEAH, NOBODY
UNFORTUNATELY WAS IMMUNE OR
HAPPY ABOUT THE FUEL SURCHARGE
BUT WHEN PRICES TRIPLED OR
QUADRUPLED, WE HAD TO MAKE AN
ADJUSTMENT AND ADDED A FUEL
CHARGE EARLY THIS YEAR AND GOT
PEOPLE THAT WERE UPSET WITH IT,
BUT THEY UNDERSTOOD.
IT WAS ACROSS -- IT’S NO MATTER
HOW YOU TRAVEL, THE COST OF
EVERYTHING WENT UP AND INFLATION
CERTAINLY HIT US AS WELL.
LAUREN: WHAT WAS THE FUEL
SURCHARGE?
HOW MUCH HIGHER WAS IT?
>> IT WAS ON A PER SEAT BASIS A
COUPLE HUNDRED IN SOME CASES BECAUSE IT REALLY WAS, YOU KNOW,
BECAUSE IT REALLY WAS, YOU KNOW,
ALMOST TRIPLED OR QUADRUPLED
DEPENDING WHERE WE WERE GOING
AND LANDING INCREASES.
LAUREN: THAT IS A BIG INCREASE
WHETHER YOU HAVE THE MONEY OR
NOT.
I’M CURIOUS IF AT SOME POINT
PEOPLE SAY, I CAN’T AFFORD THAT
AND CHOOSE NOT TO.
THE PRICE OF X, Y OR Z IS
EXORBITANT AT THIS POINT.
>> YEAH, WE DON’T LOCK THEM INTO
LONG-TERM CONTRACTS.
THE MEMBERSHIP IS MONTHLY IF
THEY CHOOSE THEY’RE NOT GOING TO
TRAVEL.
WE’RE GOING TO CAP BECAUSE WE
WANT OUR MEMBERS TO HAVE THE
ABILITY TO TRAVEL.
A LOT OF MEMBERS ARE STILL, EVEN
THOUGH THEY MAY NOT TRAVEL,
THEY’RE HOLDING ONTO THE
MEMBERSHIPS, WHICH IS WHY
THERE’S WAIST LIST IN CERTAIN
AREAS AND LOOKING AT CONTINUING
TO EXPAND AND GROW AND THAT’S,
YOU KNOW, ONE OF THE NICE THINGS
WHILE THERE’S A LOT OF FOLKS
STRUGGLING RIGHT NOW, OUR
BUSINESS IS EXPANDING AND WE’VE
HAD NINE STRAIGHT QUARTERS OF
TOP LINE REVENUE GROWTH AND GOES
BACK TO STARTING PRE-PANDEMIC IN
DECEMBER 2019 AND THERE’S A
DEMAND FOR THE TRAVEL THAT WE’RE
PROVIDING.
LAUREN: WHAT ABOUT YOUR PILOTS?
I MEAN, EVERYONE’S COMPLAINING,
YOU CAN’T GET A PILOT -- ENOUGH
PILOTS TO FLY WHERE PEOPLE WANT
TO GO.
A MAJOR PROBLEM RIGHT NOW.
I PERSONALLY LIKE AN OLDER
PILOT.
I SAY, OH, GRAY HAIR, THAT MEANS
HE HAS EXPERIENCE.
I MIGHT LAND SAFELY.
ARE YOU HAVING ANY ISSUES
GETTING TALENT, GETTING PILOTS
AND FLIGHT ATTENDANTS?
>> YES, IT IS AN ISSUE.
LUCKILY I DON’T HAVE TO DEAL
WITH THAT DIRECTLY.
OUR CHARTER OPERATOR DOES AND WE
WORK HAND-IN-HAND WITH THEM AND
PILOT SHORTAGES AS WELL AS
SUPPLY CHAIN ISSUES EVEN ON
AIRCRAFT PARTS HAS BEEN AN
ISSUE, BUT WE’VE BEEN FAIRLY
SUCCESSFUL AT NAVIGATING THAT
AND BEING ABLE TO PROVIDE THE
SERVICE TO OUR MEMBERS, BUT IT’S
TOP OF MIND WE’RE ALL FOCUSED ON
AND LOOKING AT WAYS TO ATTRACT
TALENT, THE OLDER CREW AS YOU
SAY THAT WE WANT TO MAKE SURE
PEOPLE FEEL COMFORT AND WILL ON
THESE LARGE CABIN AIRCRAFT, THEY
CERTAINLY DO.
LAUREN: QUICKLY, TOM, THE FRENCH
TRANSPORT MINISTER IS WEIGHING
THE IDEA OF TAXING PRIVATE JET
USE BECAUSE THEY WANT TO CUT
DOWN ON, YOU KNOW, CARBON
EMISSIONS AND THE LIKE.
IF SOMETHING LIKE THAT WERE TO
HAPPEN, OR BE FLOATED HERE, HOW
DO YOU THINK YOUR CLIENTS WOULD
RESPOND?
TAXING THEM TO FLY PRIVATE?
>> YEAH, UNFORTUNATELY I THINK
THERE’S GOING TO BE A LOT OF
PUCKER-BACK TO THAT BECAUSE
WE’RE -- PUSHBACK BECAUSE WE’RE
MORE SPREAD OUT IN THE UNITED
STATES THAN THEY ARE IN EUROPE,
AND IT’S THE WAY OF TRAVEL YOU
HAVE TO SPEND AN ENTIRE DAY
DRIVING VERSUS FLYING AND PEOPLE
AREN’T GOING TO STOP TRAVELING
SO I THINK THAT WOULD BE A TOUGH
ROAD TO HOE HERE IN THE U.S..