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Set Jet, a membership-based private jet charter service in Arizona, announced suddenly it was ceasing operations immediately.
Set Jet sent an email to members on Saturday about the sudden and unavoidable decision. The company said that due to unforeseen changes in aircraft availability, the challenge of finalizing the public offering and securing necessary funding led to the decision to cease service operations immediately.
"This decision was reached after exhaustive deliberation and consideration of all available options, and it is not one that we make lightly," Set Jet said in a statement on its website.
Due to the immediate cessation of Set Jet's operations, all active memberships and booked flights were canceled. Any upcoming billing period would not be charged and any future flights were automatically canceled. The member services are now discontinued and customer service representatives will no longer receive calls or manage member profiles.
"This is undoubtedly a challenging and deeply distressing time for all of us as a community," Set Jet said. "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."
The company was founded by Tom Smith and Trey Smith and is headquartered in Scottsdale, Arizona. Tom Smith was the co-founder of TASER International and served as its President until October 2006. Set Jet has delayed a planned SPAC IPO multiple times and Smith told Private Jet Card Comparisons an investor backed out and the company could not find a replacement. The investor was Coleman Group of London, which announced a proposed SPAC merger in July 2023 and had provided $4 million in financing. Smith told Private Jet Card Comparisons that Coleman Group did not provide the additional $14 million commitment. After losing funding, there is no money to refund customers who paid for future flights.
BNN Breaking reports that Set Jet had 2,899 active members and a revenue of $7 million through the first six months of 2023. The almost 3,000 customers were paying at least $99 per month for the private jet member services. Smith told Private Jet Card Comparisons the most recent Set Jet flight was just two days before the sudden closure.RELATED STORIES:Former Wheels Up leadership forms new brokerageWheels Up unveils corporate program for small, medium-sized businessesWheels Up names new CEOWheels Up stock takes wild ride after $500m lifeline from Delta
In the post-COVID industry, many companies have endured a mighty rise and fall, most notably in the world of private jet charters and memberships. Numerous companies took advantage of the increased interest in private aviation and memberships during the pandemic, but reality has begun to sink in as the market stabilizes and interest fades. Private aviation company Wheels Up went public in 202 and after a quick rise and peak of $11 per share, saw a sharp decline by mid-2023. In August Delta gave Wheels Up a $500 million lifeline and took on 95 percent ownership. Wheels Up has since named a new CEO and board members, unveiled a corporate program for small and medium-sized businesses, and seen former leadership launch a new brokerage and advisory business with an agreement with the company.
Set Jet is the latest private aviation company to see a massive change in the post-pandemic market and industry. The company ceased operations immediately and has issued a statement on its website.