Jet Edge International, the global leader in private aviation, has introduced its innovative All Quoted Revenue (AQR) program. This simplified revenue model streamlines the charter sales process while increasing revenues for managed aircraft owners.
The industry has traditionally operated on an antiquated pricing structure wherein aircraft owners are dependent upon a percentage of flight time revenue and other inconsistent, incremental revenue streams. In many cases, managed firms can have multiple owners who all have different charter revenue terms. The complexities of having variable charter agreements across a fleet creates a highly inefficient selling environment for both the charter operator and the owner. This can result in scenarios where the charter operator and owner may not be aligned. The All Quoted Revenue program ensures that Jet Edge managed aircraft owners are participating from all quoted sources, resulting in much higher per hour yields and significantly less complexity in the sales quoting and financial reporting process.
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“For the past two years, Jet Edge has been focused on streamlining all aspects of its charter model with the intention of providing higher revenue yields per hour to our aircraft owners and aligning ourselves further with an efficient selling environment that is easy to understand,” comments Jet Edge International CEO Bill Papariella. “We want to eliminate any scenario where the operator is not aligned even if that means giving greater yield to the owner on a per charter basis in return for a simple and complex-free selling and reporting process.”
With the acquisition of JetSelect Aviation in January, which operates the largest managed fleet of Challenger 300/350/604/605 business jets in the country, Jet Edge was able to analyze its respective platforms and merge the best practices of each company. Jet Edge realized that the JetSelect CEO, Robert Austin, was operating under a much more efficient selling platform with their owner base. Over the past six months, Jet Edge optimized the existing JetSelect revenue model, merged the two entities, and institutionalized the new program across the entire managed fleet.
“The result of our AQR program soft launch in Q1 has been the addition of 16 new managed aircraft, which represents the largest single fleet increase in any given year for Jet Edge. The fact that we surpassed our historical annual fleet addition target in less than six months has validated the model for our valued aircraft owners and entire staff who worked tirelessly on implementing the AQR program during these challenging times,” comments Bill Papariella, Jet Edge International CEO. “As charter activity continues to rise, I am confident the All Quoted Revenue Program will provide significantly increased yield to our aircraft owners and allow us to operate with the sales efficiencies that create positive outcomes.”
Jet Edge 2020 highlighted fleet additions include: five Challenger 350/605s, a G280, two G550s, a Legacy 650, a G650, a Hawker 900XP, a Gulfstream G450 and a handful of Gulfstream GIV-SPs. A number of the Challenger and Gulfstream aircraft are 2020 factory direct additions.
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