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Gilt-Edged Gas Pumps: The Jet Set Gets a Break

Gilt-Edged Gas Pumps: The Jet Set Get a Break A private jet membership program is slashing fuel costs for customers, and others may follow. By: Robin Goldwyn Blumenthal; Barron’s

Cheap oil is giving a lift to ritzy travel. Magellan Jets, which makes private jets available through a membership program, has cut its clients’ fuel charges by 16%, and rivals may follow suit. It’s a big cut, reducing the charges by nearly $125 an hour, to $777. For a six-hour flight from New York to San Francisco, customers now pay $750 less.
Private-jet travelers have been demanding such cuts, says Magellan CEO Joshua Hebert. Though the price of jet fuel is off only 9% in the past 12 months, customers wanted dramatic reductions like they’d seen at gas pumps, Hebert says. “Every Monday morning in our sales meeting, the biggest concern that we were hearing from customers was the cost of fuel,” he adds.

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