Jumpon Flyaways (Jumpon) is a travel service provider that utilizes idle charter airplanes to offer weekend getaways on short notice and at discounted fares. The company operates exclusively with Enerjet, an established charter airline that provides transportation services for people working onsite at the Oil Sands located in Fort McMurray, Alberta, Canada. At Enerjet, airplanes are primarily used during the week for workplace transportation. With limited demand for charter services to Fort McMurray on the weekend the planes previously sat idle (jumpon, 2013). Launched in April 2013, Jumpon is capitalizing on idle assets and providing a niche travel service to a segment of the population that have the means to travel weekends with generally last minute availability. Originally, Jumpon was proposed as a business unit within Enerjet. It was instead launched as a partner under its own company name where its profits and expenses are outside of Enerjet’s balance sheet (jumpon, 2013). Although, the partnership with Enerjet and its charter flight operations is a fundamental dynamic to the potential success or failure of Jumpon, this analysis will focus solely on Jumpon’s market offering and will not assess Enerjet’s business model, operations, or strategy.
2 JUMP ON FLYAWAYS MARKET OFFERING
Jumpon’s objective is to deliver “direct flights during peak times at low prices” (Jumpon, 2013). To deliver on its mission Jumpon operates flights in response to a specific needs of a particular group of consumer demand. Six to eight weeks prior to potential departure, Jumpon advertises an offering to one city at a specific time and at a set price. Once the flight bookings have reached 80% capacity, referred to as the “jump point”, the flight is confirmed (Jumpon, 2013). The model relies heavily on confirmed passengers using their social networks to attract more passengers to book, thus ensuring flights will be confirmed. If the flights do not reach the jump point the flight is cancelled and those who had booked are not charged. To date, the departure city for flights is always Calgary, Alberta, Canada and destinations have largely been domestic flights to popular weekend getaway locations like Vancouver and Kelowna, British Columbia (BC), Canada with one exception to Las Vegas, Nevada, United States. Jumpon has demonstrated significantly lower flight prices in comparison to the traditional airlines operating out of Calgary. Jumpon has demonstrated flight discounts in excess of 50% in comparison to other airlines for the same flight schedule and duration . Since its launch earlier this year Jumpon has offered seven weekend return flights with five of them successfully reaching the jump point. Utilizing preliminary vertical integration, Jumpon has recently expanded its product offering to include extended services such as hotel accommodations and entertainment activities such as ski hill lift tickets and wine tours to supplement the passenger’s vacation.