Flyjets launches peer-to-peer exchange for empty bizav seats

Empty legs and partially filled aircraft have long been seen as unavoidable consequences by business jet operators. But Jessica Fisher of Flyjets wants to change that. The company recently launched secondary exchange with a first-of-its-kind marketplace where travellers can buy and sell individual spaces on private jets.

“A lot of our flyers want to book flights from point to point, and they want to share with a group,” explains Jessica Fisher, Founder and CEO of Flyjets. “For example, if someone’s going from Miami  to Teterboro and paid $20,000 for a super mid-size jet,  we provide  a forum for that person to offload extra spaces on the plane and get paid back for it.”

“Many of our customers say, for instance,  ‘There are only three of us on this flight on a nine-seater. Can you offload three spaces and try to make back nine grand in total?’” Fisher notes. The FlyJets platform’s model is similar to StubHub or eBay through an automated system. Buyers will have both “buy now” as well as bidding options available.

The company started off with the marketplace for charter flights allowing buyers to book flights between two locations. Its initial focus was on building algorithms for price discovery eliminating the need for human intervention.

“This exchange was our idea from Day One,” Fisher reveals. “It took us a long time to build because we focused on building algorithms and moving the primary marketplace along first. Now that the marketplace is locked down, we can launch the Exchange.”

While the company wants to connect sellers and buyers, it did not exactly want to be the next Uber for private jets. Instead, Fisher, who has experience in finance and exchanges, said she was focused on creating a true marketplace with exchange and clearing capabilities.

“I wasn’t looking for Uber,” she expalins. “I was looking to build an efficient marketplace and exchange, whether you want to call that TD Ameritrade, eBay or StubHub for charter flights. It was a different mechanism.”

While technology is always welcome, individualised touch remains a key factor when it comes to private aviation. “Charter aviation is always going to be a high personal touch industry. You are never going to not need people – the product is too intricate with too many moving parts,” she states. “Now that we’ve gotten our technology right, we’re of course going to make sure to continue to run a very efficient concierge and sales desk simultaneously.”

Fisher says its all about finding the balance between automation and personalisation. While transactions occur directly between users, Fisher says Flyjets will monitor each transaction to ensure all the parties are vetted and transactions are completed securely.

“Monies associated with  all peer-to-peer transactions  will be kept in escrow until flights actually launch,” Fisher explains.

The exchange will be membership only with early access priced at $1,500 and regular access at around $2,100. Fisher says the cost will cover overhead expenses including vetting members.

“When we onboard someone, we have to do a background check,” Fisher explains. “Given the nature of the aviation industry and security standards, we really want to make sure that we have the team and infrastructure to ensure everyone has a great experience from start to finish.”

The exchange is initially set to launch in North America where the company is based. However, the technology is built to accommodate global expansion, and Fisher is already planning expansion.

“The way our app is built, we can handle point-to-point airports and locations anywhere in the world,” Fisher says. “Once we launch in North America, we can do international flights, flights within Europe, within Asia, etc. There is nothing prohibiting us from moving to different locations around the world.”

That is not the only expansion Fisher has on her mind. She sees broader applications for the exchange technology.

“We’re hoping that these space exchanges and the resales of empty legs and maybe in the future resale of extra jet card hours can be facilitated through our technology,” she notes.

As the private aviation industry evolves, Flyjets’ combination of marketplace dynamics and peer-to-peer functionality could represent the next significant step in making private air travel more efficient, accessible, and sustainable.