Orlando, Fla. – At a time when headlines are raging about the constipation of the financial markets and the utter lack of any financing available, especially for fledgling operations, Long Beach, Calif-based JetSuite scored during the NBAA convention when it signed a deal with Mosaic Leasing Limited, an Irish investment fund supporting financing for light jet fleets. The firm is financing a portion of JetSuite's 50-aircraft Embraer Phenom 100 fleet order.
JetSuite, based in California and Nevada, is the largest U.S. customer for the Embraer Phenom 100, for which it also optioned another 50 aircraft. JetSuite plans to commence service in the second quarter of 2009, once it receives the necessary government approvals for Part 135 operations.
It plans to launch from Los Angeles and Las Vegas next year with a fleet of 11 jets and then add two aircraft per month to broaden service in the western United States, Alaska, Canada and Mexico. Next year it expects 12 aircraft and begins the two-per-month delivery schedule in 2010. Like other such operators, JetSuite plans to expand to cover other regions, once it proved the model on the West Coast.
Range for most of its missions will be 1,160 nautical miles making it a regional operator similar to DayJet but without its per-seat, on-demand model. Given the range, its service from its Long Beach base will encompass Washington State, Mexico and Colorado
"Given the economic environment today, we're very pleased to see there's still encouraging financial support for emerging private jet fleets,” said Alex Wilcox, CEO and president of JetSuite. “With this financing, JetSuite is on target to launch in the second quarter of next year."
It was that economic environment that caused JetSuite major trouble before it even started. Having originally chosen Adam Aircraft’s A700, in addition to the Embraer Phenom, the bankruptcy of the fledgling manufacturer caused a year-long delay. JetSuite, known as MagnumJet in 2006 when it ordered 101 A700s in addition to the Phenom fleet order, is financed by Proctor Capital Partners, a private equity firm based in New York.
The business model for the fledgling operator, will manage the aircraft for owners, to whom it will sell whole positions for the $3.5 million cost of the aircraft and to whom it will pay $25,000 monthly, which covers debt service. Owners are able to take the tax advantages. The Phenoms it is ordering include additional equipment such as weather radar which accounts for the premium on the Phenom 100 price. In return, owners will get a minimum of 25 hours with no additional charges such as landing fees and fuel surcharges. JetSuite expects the aircraft to fly 1,000 hours annually.
"We're excited to partner with JetSuite in this new endeavor and thrilled to support their launch next year," said Thomas K. Peterson, director of Mosaic. "Working together with Embraer and Pratt & Whitney Canada, we believe this will be a formidable team!"