USA TODAY International Edition
Upstart airline OneJet targets underserved cities
Upstart airline brand OneJet announced Tuesday that it has entered an agreement to acquire Ohio-based Ultimate Jet Charters.
OneJet, a public charter company whose flights are flown by a contract operator, thinks it can make money by offering business travelers non-stop service between midsize markets that lack direct links.
OneJet CEO Mathew Maguire said hundreds of non-stop options have disappeared from such markets as carriers American, Delta and United bulked up through mergers. For most midsized markets, those companies are now focused on funneling passengers through their hubs on one-stop itineraries.
With its smaller planes, Maquire believes OneJet can fill a niche for nonstop routes that would be difficult for hub-focused major airlines to serve with aircraft that are often too big for “point-to-point” service between midsized cities.
“There are about 1,500 routes in total that have emerged in this post-consolidation environment ... that make a lot of sense for this business,” Maguire said to USA TODAY’s Today in the Sky blog.
Now, he’s touting the deal for Ultimate Jet Charters as one that will help OneJet continue that effort.
“We think that presents a pretty ripe segment of the market. And we don’t think there are a lot of companies right now that are scaled to take advantage of it. We have been looking for ways to exploit the growth,” he told Today in the Sky.
“We really saw it as a turnkey way to accelerate the growth of our business,” Maguire said, noting Ultimate’s history of more than 30 years in the business. “Once the acquisition is complete, we will have 20 aircraft immediately. We expect 25 aircraft by the end of the year."
OneJet has added non-stop routes between midsized cities during the past two years. It operates mostly from bases in Pittsburgh and Milwaukee, though it also offers flights on point-to-point routes such as Albany, N.Y.-Buffalo.
In Milwaukee, OneJet secured the backing of influential local aviation executive Tim Hoeksema, former CEO of the defunct Midwest Airlines that once was Milwaukee’s beloved hometown carrier.
OneJet sells seats on flights flown by operator Contour Airlines that are on a mix of 30-seat Embraer E135 and E145 regional jets as well as on seven-seat Hawker Beechjet aircraft.
With Ultimate Jet Charters, OneJet will take over an operation whose fleet currently includes nine 30-seat Dornier and one 30-seat Embraer ERJ135 regional jets. More Embraer planes are on the way.
OneJet says Ultimate Jet Charters will be integrated into its regional network, alongside current operator Contour Airlines, beginning June 4.