Qatar Airways invests in American private jet charter airline JetSuite
• By securing this investment, the airline plans to grow to 100 aircraft from the current 27
• JetSuite will mainly expand its subsidiary JetSuiteX which offers scheduled private jet services in the West-coast
• JetBlue Airways also increased its existing share in JetSuite
• The magnitude of the investment has not been disclosed, but Qatar Airways’ stake is limited to 25% by U.S. federal law
Corporate Strategy analysis:
JetSuite is a private jet charter airline currently based in Burbank (LA area) focusing on the West-coast’s North-South flow. The airline has plans to move its base to Dallas Fort-Worth (A Qatar destination and American Airlines' main hub). Besides the possibility to charter a full private jet, the airline recently started offering scheduled private jet services under the JetSuiteX brand. The JetSuite fleet exists mainly out of Embraer executive jets, while the current JetSuiteX fleet consists of 5 Embraer 135’s with 30 seats. The fleet growth will enable the airline to expand mainly JetSuiteX's fleet and its network reach in the U.S.A.
According to JetSuite, its unique selling points are the reduction of total travel time by 90-120 minutes by using private jet terminals and its luxury-oriented service offer. The latter fits Qatar Airways’ service proposition. The investment might lead to further partnership through i.e. codeshare agreements and loyalty programs.
After Qatar Airways dropped its attempt to acquire a 10% stake in American Airlines, this is its first investment in an American airline after having invested in IAG and Air Italy (former Meridiana) among others. These investments bring Qatar Airways valuable partnerships and it enables the airline to limit the impact of risks like the recent overfly ban by neighboring countries.
Source:
Forbes
Rgds,Martin.