Jet card escrow accounts offer an additional layer of financial security for all parties involved in jet card programmes. By engaging an independent escrow agent, funds are held securely until flight hours have been used, ensuring peace of mind for jet card purchasers, charter brokers, and operators alike.
A "jet card" (a predominantly American term) is a pre-paid programme gives purchasers priority access to private aircraft services without the long-term commitment of owning or leasing an aircraft. Customers purchase a set number of flight hours or a specific monetary value, which they can redeem for flights as needed, often at a lower price per hour than walk-up charter services. In this way, brokers and operators can buy loyalty from charters, and charterers can be rewarded for their loyalty through lower charter costs.
Jet cards offer the convenience and flexibility of private aviation, tailored to the user's travel requirements, with the added bonus of predictable costs and, frequently, streamlined or priority booking processes.
The specific advantages of a jet card will depend on the programme, but jet cards generally provide numerous advantages, including guaranteed aircraft availability and consistent pricing.
Programmes often include discounts on premium services such as in-flight catering and dedicated customer support, either in relation to a specific aircraft, class of aircraft or fleet of aircraft, enhancing the overall travel experience.
Despite their benefits, jet cards carry certain risks. Pre-paying significant sums can expose purchasers to financial loss if the broker/operator becomes insolvent or fails to deliver the promised flights.
There is also the potential for changes in terms and conditions, such as alterations in pricing, aircraft availability, or service quality. Lack of transparency regarding how funds are managed and protected can further compound these risks, leading to uncertainty and reduced confidence in jet card programmes.
Jet cards come in various forms to suit different needs. They can be structured based on aircraft size—light, midsize, or large-cabin jets—or offered as a combination of categories. Some programmes provide fixed hourly charter rates, while others may have dynamic charter pricing influenced by factors such as peak travel times/dates or fuel costs.
Additionally, jet cards may differ in terms of geographic coverage, with some focusing on regional travel and others offering global access.
Traditional jet cards typically involve direct payment to the jet operator or charter broker, with funds used at their discretion to provide flights. These funds are 'prepaid', so generally belong to the operator or charter broker.
While this model offers convenience, it relies heavily on the provider's financial stability and integrity and their ongoing ability to make aircraft available for use. There is often limited protection for the purchaser's funds, and in the event of the operator or broker's financial difficulties, or technical difficulties within the aircraft fleet, purchasers may face challenges in recovering their money or securing the flights and services they paid for.
Increasingly, responsible charter brokers and operators are tending towards implementing escrow-backed jet cards. This introduces an added layer of financial protection by engaging an independent third-party escrow agent to manage the funds.
The prepaid amounts are held in an escrow account in the purchaser's name, and only released to the operator or broker upon the successful delivery of flights.
This arrangement safeguards the purchaser's investment, whilst locking-in the loyalty that makes jet card programmes so attractive to brokers and operators, ensuring that they are compensated fairly, and promoting transparency throughout the transaction process.
In essence, by introducing escrow arrangements, all of the financial risks associated with traditional jet card programmes can be mitigated.
Our jet card escrow accounts are designed to provide secure and transparent management of prepaid funds. As a trusted escrow agent, we hold your funds in a dedicated account, releasing them incrementally as you use your flight hours/credit.
This ensures that your money is protected at all times, offering protection against the insolvency of your broker or operator. Our services are compliant with all relevant regulations, and through our online portal you can check on the balance of your card and all of your transactions at any time, 24/7.
For jet charter brokers, partnering with us enhances credibility and trust with clients. It demonstrates a commitment to financial transparency and customer protection, which can be a significant differentiator in a competitive market.
Brokers can reduce the risk of payment disputes and delays, streamline their financial processes, and focus on delivering exceptional flight experiences. Additionally, it can attract more clients who value the added security an escrow arrangement provides.
Jet operators like that escrow-backed programmes ensure prompt and secure payment for flights. The escrow arrangement reduces the risk of payment defaults and enhances cash flow management.
Operators can operate with greater confidence, knowing that money is available and will be disbursed upon fulfilling their contractual obligations. This can lead to stronger partnerships with brokers and clients, fostering long-term business relationships.
Jet card purchasers gain significant peace of mind from escrow-backed arrangements with all of the benefits of a jet card in the traditional sense, with one key improvement: Their money is protected until they receive the agreed-upon flight services, mitigating the risk of financial loss due to provider insolvency or non-performance.
The transparency of the escrow process builds trust, allowing purchasers to commit to significant prepayments and bulk-purchases of flight hours (and the attendant cost and time savings) with confidence. This security enables them to enjoy the convenience and luxury of the private jet travel experience without undue concern over financial risks.
The jet card escrow process involves an independent escrow agent who holds the jet card money in a secure third-party account for a period of time until it has all been used up.
When a flight is requested and completed, the operator or broker confirms delivery, and the escrow agent releases the corresponding payment to them.
This cycle repeats with each flight until the prepaymentis all used up. The arrangement ensures that payments align precisely with flights provided, but also that the flights are promptly paid for.
Our escrow services prioritise security and transparency at every stage.
Funds are held in segregated accounts with reputable financial institutions (GBP funds are held at the Bank of England), ensuring they are segregated (kept separate) from our own operational funds and safeguarded (not used by the underlying bank for its own investment/lending activity), so they will always be available to the purchaser even in the unlikely event of our own insolvency.
All transaction records are available through our portal, offering clear visibility into the balance and breakdown of any charges.
dospay is a trading name of DOS & Co. Ltd, a company registered in England and Wales with company number 08294966.
DOS & Co. Ltd. is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (FRN: 833374) for the provision of payment services.
All of our escrow and third-party managed accounts are segregated and safeguarded at the Bank of England.
