OneFlight's $150 million deposit freeze raises questions about jet card safeguards

OneFlight International has paused flight activity with jet card customers having deposited more than $150 million for future flights they have not yet taken, according to Private Jet Card Comparisons. If OneFlight cannot find an exit, members will lose those funds and become unsecured creditors in any bankruptcy.

Since OneFlight operated as a broker, it likely has few valuable assets such as aeroplanes or parts, leaving customers with limited recovery prospects. Private Jet Card Comparisons reports that other private jet companies have begun targeting OneFlight customers with promotions, some of which make claims about the safety of deposits that do not withstand scrutiny.

Refundability offers no protection in insolvency

One marketing claim emerging since the pause is that refundability protects jet card money. Private Jet Card Comparisons argues this is misleading. While refundability is a useful feature when a company is solvent, it becomes worthless if the operator runs out of cash. "If a company is out of money, your refund request won't mean much. There will be no money to provide refunds," the publication states.

Separate accounts are business practice, not legal protection

The second claim being circulated is that keeping jet card funds in a separate account protects customers. Private Jet Card Comparisons distinguishes between good business practice and legal safeguard. Keeping funds separate and moving them only as flights occur prevents management from spending deposits on marketing and operations—sound practice that prevents misappropriation. However, this does not provide the legal protection some customers believe it offers.

Where accounts are held in escrow, the structure may offer additional protection, but Private Jet Card Comparisons does not clarify whether escrow accounts were standard in OneFlight's operations or whether the distinction matters in practice.

Why broker models tie up more customer cash

The deposit requirement varies significantly by business model. A broker program typically requires between 50% and 150% of the flight value to purchase that flight from a third-party operator six months after a customer joins. On the low end, the broker may have located an empty leg requiring minimal working capital. On the high end, a short-notice flight in the Midwest may be a money loser, or the broker may need to source a recovery flight if the original operator cancels.

By contrast, a jet card seller with an owned or leased fleet may need only a fraction of a trip's cost to fund it, since the operator is already making lease or debt payments for aircraft and hangars, paying pilots and operations staff, inventorying parts, and covering overhead. The reporting does not say which model OneFlight used or how that choice affected its capital requirements.