Jet Edge International has introduced its new All Quoted Revenue (AQR) programme. The charter operator said the AQR is a simplified revenue model, compared with traditional structures, which streamlines the charter sales process while increasing revenues for managed aircraft owners.
Charter is traditionally operated on an antiquated pricing structure, wherein aircraft owners are dependent upon a percentage of flight time revenue and other inconsistent, revenue streams, said the company. Often managed firms can have multiple owners who all have different charter revenue terms creating a highly inefficient selling environment for both the charter operator and the owner, it said.
The AQR programme, according to Jet Edge, ensures that managed aircraft owners are participating from all quoted sources, resulting in higher per hour yields and significantly less complexity in the sales quoting and financial reporting process.
“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.”
In January Jet Edge acquired JetSelect Aviation, which operates the largest managed fleet of Challenger 300/350/604/605 business jets in the US. After analysing the two business models, Jet Edge realised that JetSelect was operating under a more efficient selling platform with its owner base. Over the past six months, Jet Edge has worked to enhance the existing JetSelect revenue model, then merged the two, and has launched the new programme across the entire managed fleet.
“The result of our AQR programme soft launch in Q1 [the first quarter] 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 programme during these challenging times,” added Papariella.
Jet Edge’s 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. Furthermore, a number of the Challenger and Gulfstream aircraft are 2020 factory direct additions.
Meanwhile, more information about the AQR programme is available here.