Costco, Wheels Up bring private jet memberships to the masses
A 12-month private jet membership costs $17,500
Costco will be selling private jet memberships through a new partnership with a private aviation firm called “Wheels Up.”
“We’re democratizing private aviation. We’re bringing it from tens of thousands to millions and if you’re going to democratize aviation, who better to partner with than Costco,” Wheels Up founder & CEO Kenny Ditcher told FOX Business’ Kristina Partsinevelos on Wednesday.
COSTCO'S DELIVERS BIG SPECIAL DIVIDEND
Although the year-long membership costs $17,499.99, it also comes with a $3,500 Costco Shop Card and $4,000 worth of flight credit. The Wheels Up fleet includes more than 300 private aircraft as well as more than 1,250 partner aircraft.
“Exciting times for our business and what was once a luxury is now an essential,” Ditcher said.
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Ditcher went on to say that the "dynamic" pricing model allows for "very simple" travel. He estimated that a member can fly to Boston from New York for “less than $5,000" on a private jet.
“You can get to Boston, all 8 seats, less than $5,000. So if you’re thinking about bringing the family up to Boston, you’re talking about $400-$500 a seat which is easy to do. If you’re going down to Florida, $12,000-$15,000 depending upon when and where,” Ditcher explained.
“We have dynamic pricing. If you have flexibility, you’re going to get strong pricing,” he said.
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FOX Business' Ann Schmidt contributed to this report.