Arizona-based hop-on charter Set Jet suddenly ceased operations Friday saying it ran out of money after several delays in issuing a SPAC IPO. The company had 2900 members who paid as little as $99 a month and could get seats for $750 to $1,550 on flights throughout the West and to Cabo San Lucas using Challenger 850s that seated 13 to 15 passengers. An investor backed out on a $14 million commitment Friday and that was the last straw.
The company was planning a major expansion to Texas and the East Coast after going public but instead disappointed hundreds of customers. “This is undoubtedly a challenging and deeply distressing time for all of us as a community,” CEO Tom Smith said in an email to customers and staff. “We understand the incredible impact this decision may have on you, and we grieve alongside you for the loss of the service and experiences we have all shared over the years.”
“We understand the incredible impact this decision may have on you, and we grieve alongside you for the loss of the service and experiences we have all shared over the years.”
Yeah, I’m grieving too.🤦♂️
As I mentioned in another comment, flying has never been “cheap”, and it appears that trying to deny that truth can only last for a very short time.
Too many people forget the most basic rule of business: More cash needs to come in than goes out. This especially seems to be forgotten west of the Rockies.
Condolences to the rank and file workers who are now without their jobs.
Visited their expansive booth at Barrett-Jackson Auto Auction in Scottsdale 3 weeks ago.. Lots of pretty pictures and bold statements of affordable personal jet travel. I even brought home the postcard flyer “for further study”… Realized premise was too good to be true, and glad to find this affirmation. Do feel sorry for both customers and employees, but defying the laws of economics has always been a challenge…
“As little as $99 a month?” So, $99 times 2900=$287,100. What with the cost of doing business with jets it’s no wonder they ran out of money.
Plus $750 to $1,550 per ticket.
I guess they will just have to fly on Soutwest, now.
Baggy Shorts, No Belts, Flip-Flops endorsed.
I’m reminded of the old joke about the company that was losing $1 on every sale but they were going to make it up in volume.
That is a daily occurrence, especially among the young. It just doesn’t go away. You would think people would learn from predecessor’s. They don’t. It just never happens. They really screw it up (until they go out of business) for people who do know what they’re doing.
Problem there is that if you are a large company, too large to fail according to some government bureaucrats, just file chapter 11 bankruptcy. The mainline airlines have been doing that for years, some more than once. I’m guessing that is what is taught these days in business schools.