Why Jet It Failed

Jet It sent a letter to employees saying everyone is terminated, and the company is shutting down.

Craig Fuller

Friday, May 26, 2023 at 06:40 PM ET

Verified

Prior to the grounding, Jet It was the largest operator of HondaJets in the U.S. [Courtesy: Jet It]

Key Takeaways:

Jet It abruptly ceased operations and shut down, initially claiming safety concerns about HondaJets but later revealing severe financial insolvency as the true cause.
Fractional aircraft owners are now burdened with Jet It's unpaid expenses for fuel, maintenance, and storage on their aircraft, while vendors like maintenance shops and Honda Aircraft are owed significant amounts.
The company's demise was due to an unsustainable business model, characterized by unsustainably low client rates, heavy reliance on new fractional sales that eventually dried up, and chronic failure to pay vendors, leading to operational disruptions and legal issues.

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Buying a fractional share of an airplane is supposed to make personal jet aviation effortless, but for Jet It clients it has become a nightmare. On Monday, May 22, Jet It fractional owners were told that their airplanes were being grounded because of safety concerns about the HondaJet.

At the time of the grounding, Jet It claimed that it was taking the action out of an abundance of caution in light of an incident with a HondaJet. The airplane ran off the end of a runway in South Carolina. Jet It CEO Glenn Gonzales told owners that he was concerned about the safety of the aircraft and wanted to understand the reason that HondaJets were more susceptible to runway excursions than similar aircraft.