Elite Traveler Spring 2024

elite traveler SPRING 2024 57

measured by charter and fractional fl ight hours. While NetJets, Flexjet and Vista Global are still much bigger entities, what fl yExclusive has accomplished so far has been meaningful to the local community. It currently employs over 800 people at a growing complex of hangars and support facilities that provide maintenance and aviation services to other operators and private jet owners. Its state-of-the-art paint and refurbishment facilities enable it to continually maintain its hardworking fl eet. A $30m grant from the state will enable it to bring pilot training to Kinston as well, something that will create even more jobs. Tommy Sowers, who joined fl yExclusive as president in 2021, says he could immediately feel the impact. Walking in downtown Kinston and wearing logo hats or shirts, he says people he didn’t know would come up to him to ask about job opportunities, tell him how grateful they were for the company’s bet on the region, and sometimes ask if they could just come out to the airport and get an up-close look at those multimillion-dollar machines. Segrave describes the company’s mission as “part of a larger cause.” For customers, Segrave’s second dance has brought a number of innovations to the programs fl yExclusive sells. While it didn’t launch its fi rst jet membership program until 2020 — it previously focused on serving the wholesale market — its Jet Club was quickly winning awards for its innovative approach. Unlike most jet cards, which simply charge a fi xedhourly rate, fl yExclusive charges a daily access fee, and then an hourly rate that is less than half the price of the industry average. That means fl yers who take longer fl ights or make multiple stops on a single day — e ffi cient fl ying for the company — also get the best deals. More recently, it launched Deal Days, which o ff er more savings to fl y on low-demand days and fl exible departure discounts. For customers who just need to leave on a speci fi c day and not a speci fi c time, they can save money if they let fl yExclusive set the departure time. That helps the operator build more e ffi cient schedules. Perhaps the most important fl yExclusive news occurred between Christmas and New Year’s. After a SPAC merger, it is publicly traded on the New York Stock Exchange

The original model was to buy and lease pre-owned aircraft, then refurbish them via the fi rm’sown facilities — a vertical integration — but in 2022, fl yExclusive announced it was entering into the space dominated by NetJets and Flexjet: fractional ownership. It currently has orders and options for nearly 50 airplanes; the fi rst fi ve Cessna Citation CJ3+s arrived at the end of 2023. Like its jet card program, fl yExclusive is taking a di ff erent route. Its program eschews monthly management fees you pay whether you fl y or not. It also entered into an agreement with Jetquity that enables owners to guarantee the residual value of their shares. In traditional models, when the term of your contract is up — generally fi ve years — you sell back your share based on current market rates. That can put owners in a di ffi cult position. For example, while the residual values, as they are called, are currently near historic highs, many owners are choosing to extend their ownership in that aircraft instead of waiting for delayed deliveries of a new jet. On the other hand, after the fi nancial crisis of 2008, when owners were selling, they found what they were getting was far below what they expected. Perhaps the most important fl yExclusive news occurred between Christmas and New Year’s. After a Special Purpose Acquisition Company (SPAC) merger, it is publicly traded on the New York Stock Exchange. Segrave says his goal in being publicly traded is that it ensures fl yExclusive will remain independent and continue its growth in Kinston. “We have

Jim Segrave, fl yExclusive CEO

children whose parents started with me 25 years ago, and my goal is that this is a place where their children can come if they choose.” Once fl yExclusive’s new headquarters and pilot training facilities open — likely in 2025 — Segrave says he would also like Kinston to be a place customers actually visit. He envisions being able to provide simulator experiences and also showcase what CNBC has tabbed as ‘America’s Top State For Business’ in both 2022 and 2023. (It was second in 2021 and third the year before.) In the meantime, you can get a taste of the company’s hometown roots via partnerships with local spirits and snack companies.

fl yexclusive.com