His well-heeled clients fly to glitzy destinations like New York, Aspen, and Miami. But Jim Segrave continues to operate flyExclusive, his private-jet company, from tiny Kinston, North Carolina, where the population is just over 19,000,
“We’re within a two-hour flight of 70% of our departures, dead in the middle of the Northeast, South Florida, and Atlanta,” Segrave tells Penta. “Facilities are less expensive. And my roots are here.”
Since flyExclusive launched in 2015, it’s grown so steadily that Segrave is planning an IPO before the end of the year. From US$99 million in revenues in 2019, FlyExclusive clocked US$320 million in 2022, projects US$367 million this year, and US$521 million in 2024, the company said in a statement. The company, which offers memberships as well as fractional ownership, owns 95 Citation jets, trains its own pilots, and handles its own maintenance. Depending on the program and aircraft selected, prices range from US$5,800 to US$10,000 an hour, a representative for the company said.
flyExclusive is now the U.S.’s fourth-largest private-jet company, a spokesperson said.
Over the past year, the segment has seen its share of turbulence. In August, Competitor WheelsUp shared “substantial doubt” it could continue operating; fractional-jet player Flexjet canceled its own IPO in April, citing “a less-than-favorable outlook in the equity markets.” Commercial airlines, meanwhile, are facing a shortage of pilots, mechanics, and air-traffic controllers, even as travel soars.
Segrave, who started in his family’s cargo-aviation business before selling his own private-jet business to Delta in 2010, talked to Penta from his Kinston office.
During Covid, many flew private to avoid other people and crowded planes. What’s the main motivator now?
Let’s just say that the airlines are our best salespeople, with cancellations, overcrowded and oversold planes, delays, and a lack of flexibility. The beautiful thing about private jet travel is that once customers fly private, with its efficiency and time savings, it’s very tough to go back. And yes, the fear of catching the virus may have subsided, but in some people’s heads, this is still a better way than flying with masses of people.
Which airports do travelers have access to if they’re flying one of your jets?
It’s typically a reliever business airport, like Farnborough or Briggs in London or Teterboro near New York. It depends on timing. But if you told us your meeting is right next to JFK or LaGuardia, we could still get you there. It’s just more expensive.
Is there ever a cost argument to be made for flying private?
Purely from a cost standpoint, no, you’re not going to get to a place where it makes sense. It’s more about quality of life and what your time is worth. These are highly productive people flying with us. Here’s a good example. Raleigh is the main commercial airport near me. It’s 90 minutes away. I have to show up an hour early for my flight. If you fly an hour to New York, it’s four hours by the time you get on the ground and on your way. If I fly private, I’m in Teterboro in an hour. I can work in the morning, fly, have a lunch meeting, and fly back for dinner with my wife and kids.
Has the pilot shortage affected your business?
The airlines are putting pressure on everyone in private aviation. They increase salaries, so we have to increase salaries, and of course pass that cost on to customers. We can recruit fairly well, but training people is the bottleneck. We’ve brought our training in-house. But the cost of hiring has gone up 25%.
What do your customers value most in the flight experience? Do they want high-end amenities, expensive finishes, top-shelf liquor?
They value safety and the training of our pilots. You can’t compromise on anything from a safety standpoint. Beyond that? They want to leave on time, arrive when they expect to, and fly in a plane that’s clean and cosmetically right. They want the car service in place when they get there. And they want to leave the plane and the airport as soon as possible. They want things to be seamless. They’re paying this very expensive price to manage their time more effectively. One of our values on the wall in our office is “minutes matter.” Once in a while, someone will want crazy catering, or caviar. But that’s rare.
Where have you traveled in 2023?
I’m all over the place. I took the family to Iceland, Norway, and Denmark [earlier this year]. We spent time in the Bahamas and Caribbean this winter. We like to take ski trips out west. I have the same travel patterns as our customers, and I’m often running into them. I do fly myself everywhere we go. I own a Citation jet, and have 10,500 hours of flight time. I’m proud to say my daughter just turned 18 and got her pilot’s license.
Is there a book, a business, or a mentor who’s inspired you?
My dad was a serial entrepreneur. He’s been one of my strongest influences throughout my life, and he’s still a sounding board for me. He’s agreed to serve on the board of directors once we go public. There are also customers along the way I’ve become close with. Everybody’s got something they can teach you. Dad always told me to learn from successful people how they got successful.
The interview has been edited for length and clarity
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