Private aviation's aspirations to democratize the skies have taken a nosedive as Set Jet, a Scottsdale-based private jet service, abruptly ended its operations. The company, which once boasted a membership-driven model offering seats on luxury flights, cited "the unavoidable reality of ceasing all service operations." Existing customers will find their memberships canceled, with no further billing cycles to be charged, according to 12 News.
The blow came after an investor from Coleman Group of London pulled their financial commitment. Set Jet, which promised to make private travel more accessible, failed to secure the additional $14 million from their investor needed to keep flying. In a crushing update, CEO Tom Smith said, "It is with profoundly heavy heart that I must inform you of a significant and unexpected development regarding Set Jet’s operations," as per Private Jet Card Comparisons.
Memberships at Set Jet started at a monthly fee of $99, with individual seat prices ranging from $750 to $1,550, a concept that allowed travelers the luxury of private terminals without owning a jet. The convenience and exclusivity this model presented seemed to have its market, as SEC filings indicated the company had 2,899 active members as of June 2023. Revenue through the first half of that year was reported at $7 million, only slightly down from the previous year. However, an operating loss of $5.5 million did little to assuage the fiscal turbulence. Smith, prior to founding Set Jet, was no stranger to success having started Taser with sales reaching a billion dollars, as reported by Private Jet Card Comparisons.
As for the members who have paid for future flights, they are left grounded with no immediate recourse for refunds. Smith's solemn announcement indicates an end to what was once billed as an aviation revolution, leaving members and employees to deal with the fallout of a soaring dream that ultimately failed to take flight.
