A successful new airline has provoked the ire of its rivals by offering ‘private jet-like’ service at business class prices.
JSX, a Dallas-based carrier, has built up a loyal following of business travelers for its luxury service and affordable prices.
The airline’s CEO and founder, Alex Wilcox – by searching Federal Aviation Administration regulations – learned that public charter planes are subject to less onerous safety and security requirements than scheduled flights.
The ‘loop hole,’ as Wilcox’s detractors brand it, is they just can’t specify flight times or cities, or sell single seats.
Wilcox therefore decided to create two companies that would work in conjunction with one another.
JSX, a Dallas-based carrier, has built up a loyal following of business travelers for its luxury service and affordable prices
The successful new airline has provoked the ire of its rivals by offering ‘private jet-like’ service at business class prices
One would make a flight schedule and sell tickets, and a second would fly the aircraft on specified routes at set times and dates.
‘I spent months without sleep, just looking at all the rules, looking for ways why it couldn’t be done,’ Wilcox told Bloomberg News.
‘Every single person we talked to said, “No, you can’t do it.”‘
However, U.S. regulators signed off on the idea.
‘So we did it,’ he added.
Wilcox founded JSX in 2015, and in less than a decade, the company has gone from operating just 641 flights over six routes, to almost 35,000 over 48.
If the company continues to grow at the current pace, annual revenue will hit $1 billion by 2028, Wilcox told Bloomberg.
Alex Wilcox founded JSX in 2015, and in less than a decade, the company has gone from operating just 641 flights over six routes, to almost 35,000 over 48
Currently, JSX allows customers to book plane tickets online like more traditional airlines. However, the plane leaves from a private hangar rather than an airport.
Wilcox’s company has grown so fast competitors have begun to lobby against it.
Larger airlines have struggled to bring back business travel revenues after the collapse of corporate travel during the pandemic.
Other issues such as safety investigations at Boeing, inflation and rising labor costs have choked the market.
The big airlines ‘don’t want to deal with a new kind of business model,’ Wilcox said.
‘They’re just trying to put us out of business’ he explained.
However, Southwest and American Airlines argue JSX is a potential security issue.
‘If you’re going to be a scheduled carrier, whoever you are, follow the rules for a scheduled carrier,’ Southwest CEO Bob Jordan said.
‘We have decades of proof that accidents have significantly declined and safety has significantly improved. Just follow that standard’ he added.
JSX says it has never had an accident, an assault on its flight attendants or a fight on its planes.
Doug Parker, former American Airlines chairman and CEO, told Bloomberg carriers like JSX should be required to meet post 9/11 standards that were implemented to counter terrorist threats.
‘We know terrorists have their eyes set on commercial aviation, and we’re giving them a perfect opportunity,’ he explained.
Parker told the outlet he raised his concerns with the TSA last year and wants regulators to move quicker on tightening security standards for JSX.
Suggested Transportation Security Administration rule changes and a review by the FAA could introduce problems for the airline going forward.
JSX is one of 19 carriers that could be affected by changes to rules for the model it uses, according to the FAA.
Wilcox said he would appeal any imposed changes that would affect its business model.
‘We would obviously exhaust all of our remedies,’ he said.
He is also banking on the support of his mainstream investors, including JetBlue and United.
‘When someone points a gun at you, you tend to hire bodyguards,’ he said.
Currently, JSX allows customers to book plane tickets online like more traditional airlines.
However, the plane leaves from a private hangar rather than an airport.
Luggage is swabbed for explosives and passengers are required to walk through a weapons detector.
One of the pitfalls is if a flight is delayed, travelers don’t have the convenience of an airport.
Additionally, if a flight is canceled, there’s not always an easy rebooking option.