JetSmarter

JetSmarter was founded in 2012 by entrepreneur Sergey Petrossov,[5][6] whose idea made him one of Forbes' "30 Under 30" business leaders of 2016.[7][8] In August 2012, the beta version was launched and tested among a closed group of private aviation users. After testing proved successful, Petrossov sought and received substantial venture funding to expand JetSmarter's scope.[9]

In June 2015, JetSmarter announced its new European headquarters in Zurich, Switzerland. In early 2016, it launched flights within Europe.[10][11] JetSmarter has offices in Zurich, London, Moscow, Dubai, Riyadh, and Fort Lauderdale.[12]

On February 16, 2017 the President of Jetsmarter, Edward Gennady Barsky, resigned after he was arrested at the Broward Financial Center, site of the company's headquarters. He was charged with five counts of grand theft by embezzlement by authorities in Contra Costa, California.[13]

On September 5, 2018 a JetSmarter shared charter flight from Las Vegas to New York had to make an emergency landing in North Platte, Nebraska, after a passenger threatened other passengers and the crew. The flight eventually continued to New York.[14]

On April 10, 2019, Dubai-based Vista Global said it had made an agreement to acquire JetSmarter adding it to its aviation portfolio, which includes VistaJet and XOJET. Vista said it would maintain JetSmarter's office in Ft. Lauderdale where its digital team is based. [15]

On June 27, 2019, Vista Global announced it had combined JetSmarter with its XOJET subsidiary rebranding the combined entity as XO, powered by JetSmarter technology. [16]

According to Business Insider and TechCrunch, JetSmarter has raised $20 million from the Saudi Royal Family, American rapper Jay-Z, American serial entrepreneur and investor Wayne Chang,[17] and investment bank Goldman Sachs Capital Partners.[12][18][19]

In December 2016, JetSmarter announced it had raised an additional $105 million at a $1.6 billion valuation. The company said this will fuel international expansion and add at least 80 more routes to its existing 50 routes.[20][21][22]

In August 2017, JetSmarter said it raised an undisclosed amount of institutional capital from Clearlake Capital Group, LP, Leucadia National Corporation and existing investors. It said it would use the money to expand services, including routes and flight frequency.[23]

JetSmarter flight services include a mix of shared and private flights:

• Seats on existing jetpooling flights starting around the same price as commercial.[24] However, many flights are priced two to four times higher than commercial airlines.[25]
• On-demand shared flights sometimes can be purchased for less than the cost of traditional charters; fliers specify how many seats they need, and then earn flight credit by allowing JetSmarter to sell empty seats to other fliers.[24] However, unlike the typical on-demand charter, buyers can't cancel or change flight times and in some cases the shared charter prices are more or similar to a traditional charter where one has the entire aircraft, according to an analysis by Private Jet Card Comparisons.[25]
• On-demand private flights backed by a low-price guarantee
• Helicopter transfers in select cities, which are now on a paid basis
• Empty-leg flight deals, or repositioning flights. The JetSmarter app allows passengers to search for and set up alerts for empty leg flights leaving their chosen cities.[26]

JetSmarter has 3,000 private jets and 2,000 free empty legs per month.[27] In January 2016, Chicago Tribune reported JetSmarter launched app-based private charter service in Chicago, using Midway International Airport as its access point.[28] Adding to its services, the company offers helicopter transfers in select cities. The fastest growing profession of JetSmarter customers is Self-Employed individuals (56%), including personal trainers, fashion stylists, designers, chefs, image consultants and event planners. That fact is supported by the apps reviews and customer assessment.[29]

• Membership – $4,950/year membership fee offering unlimited ability to book seats on existing flights as well as create shared or private flights across the globe [30]

In May 2018, JetSmarter announced it would have a fleet of 20 JetSmarter branded aircraft by the end of the year. The aircraft will be managed and operated by JetEdge, a Part 135 operator. It also said it had eliminated free shuttles and for new members, it had eliminated free flights under three hours. The company also said it was providing integration via SAP Concur to attract more corporate travel business.[31]

In June 2018, JetSmarter announced for the first time it would allow non-members to book seats on its scheduled private jet flights as well as start shared flights. It also said flight starters can now sell seats they can't use on shared charters to non-members via a function on the JetSmarter app.[32]

JetSmarter partners with various air carriers that span the range of the private charter industry.[33][34] Partnerships include Pernod Ricard,[35] Vertis Aviation,[36] and SportStar Relocation.[37] All of these partnerships lead the service aspect of JetSmarter where the company looks to utilize its travel offerings for different markets. The company has also partnered with Jet Edge and Air Hamburg to cater to its global community of private jet fliers.[38]

In 2017, The Verge reported that management of JetSmarter offered free flights to its reporters if an article was posted within five days of the flight.[39] According to the reporter if the story did not appear within that timeline, the reporter's credit card would be charged $2,000.[40]

In August 2018, a Los Angeles-based former member of JetSmarter filed a lawsuit seeking at least $2 million in damages from JetSmarter after the company refused to renew his membership. He alleged misleading advertising on social media from Kim Kardashian and Petra Nemcova as well as deceptive sales tactics.[41] In the same month, JetSmarter agreed to an undisclosed settlement after a New Jersey coupled filed a lawsuit alleging deceptive sales tactics. Their lawsuit included a text message from a JetSmarter sales representative promising free flights they allege were never provided.[42]

In January 2019, CNBC aired an investigative report on JetSmarter, titled "Tailspin". JetSmarter tried to be the Uber of private jets, now it faces lawsuits, losses and security questions. The business news channel also published a letter from JetSmarter's general counsel attempting to quash its investigation. The report includes a video of a JetSmarter flight that was diverted by a passenger making terroristic threats.[43]

• Official website