CitationShares’ Jet Card Sales Reach Capacity

April 9, 2007, 11:32 AM

One year after CitationShares introduced its Vector jet card, the fractional provider has curtailed sales to “not exceed the capacity to fulfill” charter and owner flights. “We have reached the capacity we targeted way earlier than expected,” according to CitationShares president and CEO Steve O’Neill. “We expected a renewal rate of about 35 percent, but about 75 percent of cardholders are renewing. About 10 to 15 percent of card holders have converted to fractional ownership, and there’s about a 10-percent attrition rate. So I don’t need to keep selling it to new customers. We will turn card sales on and off as we need to.” He declined to say how many Vector cards have been sold. CitationShares currently operates about 65 jets for about 1,000 shareowners, and O’Neill said his company will take delivery of nine more Citations this year and 22 next year. “We’ve also raised our prices by a lot,” he noted. “We have the highest prices in the [fractional] business, because we have the highest level of service, as evidenced by customer-retention data.” He told AIN that the nearly five-year-old company, a partnership between majority owner Cessna and Swiss firm TAG Aviation, “will be profitable next year.”

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