All-you-can-fly airline offers flat fee
Netflix of the skies? Surf Air, a California startup, will give customers unlimited access for one price.
Surf Air launched daily flights Wednesday between the Los Angeles and San Francisco areas, giving members unlimited access to its six-seat propeller planes. The cost: $1,650 a month.
Right now, Surf Air is flying only between Burbank and San Carlos instead of directly into Los Angeles and San Francisco. The company plans to add service to Santa Barbara on July 10 and wants to expand into Sacramento, Palm Springs and other California cities later -- and eventually nationwide.
Is $1,650 a month -- plus a $500 one-time initiation fee -- worth it? Surf Air is promising no lines, no waiting, 30-second booking and no fees for luggage, snacks or beverages. It uses small regional airports where parking and security lines are less of a hassle.
The airline might be attractive to executives who would normally charter a plane. The Huffington Post reports that one private plane company, Marquis Jet, charges customers $119,000 for at least 25 hours of flight time. Surf Air asks members to commit for three months and then gives them the option of paying month by month.
"We are to air travel what Netflix (NFLX) was to movies or what a country club is to a golf course," CEO Wade Eyerly tells CNBC in this video. "If you're going back and forth three, four times a month, this is an amazing deal. Not only on price but more specifically on the time that you're going to save."
Not everyone is a fan. When CNBC asked Gordon Bethune, the former CEO of Continental Airlines, about the idea, here's what he said: "This is a tough, tough investment, very very highly speculative. . . . I wouldn't put my pension in the idea, but maybe some other people have more tolerance for risk than I do."
- America beckons more foreign students than ever
- Why Americans hate Sears
- How state beer taxes hike 6-pack prices
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Reports say the generous benefactor behind the huge gratuities is a former PayPal executive.
- Chinese investors are buying up Detroit
- Mega Millions jackpot hits $344 million
- 5 reasons to think twice about a balance transfer card
- Will I have to pay taxes because of a foreclosed home?
- 5 things that won't affect your credit scores
- The 7 deadly sins of winter driving
- 8 questions to ask before Mom and Dad move in
- High deductibles fuel new worries of Obamacare sticker shock
- How to use your credit card to donate to charity
[BRIEFING.COM] The major averages spent the entire session in a steady downtrend, but despite persistent selling pressure, today's losses were limited in scope. The Dow, S&P 500, and Nasdaq shed between 0.2% and 0.3% while the Russell 2000 lagged, falling 0.9%.
The underperformance of the Russell 2000 was likely owed in part to tax-loss selling, which tends to pick up this time of year. Small-caps often feel that pinch in a stronger fashion than large-cap issues since individual ... More
More Market News
John Stumpf acknowledges that growth has been slow, but he says he's still optimistic.