Leveraging its technology, JetSmarter matches supply with demand by buying unusued "aircraft hours" in bulk and distributing them through its app. JetSmarter says the load factor on its flights is more than 90 percent, which cuts costs for users and increases efficiency.
With the new deal, members of JetSmarter will now have access to more empty legs, so when a private jet needs to get from one city to another for a purchased trip, its members can ride for free.
"This is the first time a leading private jet owner-operator like XOJet has exclusively committed its fleet to a digital player," Brad Stewart, XOJet's CEO told CNBC. "This represents the continued evolution of the private jet industry towards fully integrated, on-demand solutions and away from fractional models."
The partnership comes after a string of challenges this year have proved how volatile the economics of private aviation can be. Beacon, which offered unlimited flights between Boston and New York, for a monthly fee, went bankrupt, while BlackJet, an on-demand private jet service, backed by Uber co-founder Garrett Camp ceased its operations in May.
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