Successful new airline that offers private jet-like levels of service at far lower costs is slammed by profit-hungry established rivals who claim it risks falling victim to terrorists

A successful new airline has angered its rivals by offering ‘private jet-style’ services at business class prices.

JSX, a Dallas-based airline, has built a loyal following among business travelers for its luxurious service and affordable prices.

The airline’s CEO and founder, Alex Wilcox, discovered by searching Federal Aviation Administration regulations that public charter aircraft are subject to less stringent safety and security requirements than scheduled flights.

The “loophole,” as Wilcox’s opponents call it, is that they simply can’t specify flight times or cities, or sell individual seats.

Wilcox therefore decided to set up two companies that would work together.

One would create a flight schedule and sell tickets, and a second would fly the plane at set times and dates on specific routes.

“I didn’t sleep for months, just looking at all the rules, looking for ways why it couldn’t be done,” Wilcox said Bloomberg News.

“Everyone we talked to said, ‘No, you can’t do that.’

However, US regulators have signed off on the idea.

“So we did it,” he added.

Wilcox founded JSX in 2015, and in less than a decade the company has gone from just 641 flights over six routes to nearly 35,000 over 48.

If the company continues to grow at its current pace, annual revenue will reach $1 billion by 2028, Wilcox told Bloomberg.

Wilcox’s company has grown so quickly that competitors have started lobbying against it.

Larger airlines are struggling to regain business travel revenue after the collapse of business travel during the pandemic.

Other issues such as Boeing safety investigations, inflation and rising labor costs have choked the market.

The major airlines “don’t want to deal with a new kind of business model,” Wilcox said.

“They’re just trying to put us out of business,” he explained.

However, Southwest and American Airlines claim that JSX is a potential safety issue.

“If you’re going to have a scheduled service, no matter who you are, follow the rules for a scheduled service,” said Southwest CEO Bob Jordan.

“We have decades of evidence that accidents have significantly decreased and safety has improved significantly. Just follow that standard,” he added.

JSX says it has never had an accident, an attack on its flight attendants or a fight with its planes.

Doug Parker, former chairman and CEO of American Airlines, told Bloomberg that airlines like JSX must comply with post-September 11 standards implemented to counter terrorist threats.

“We know that terrorists have their eyes on commercial aviation, and we are giving them a perfect opportunity,” he explained.

Parker told the outlet that he raised his concerns with the TSA last year and wants regulators to take faster action in tightening security standards for JSX.

Proposed changes to Transportation Security Administration rules and a review by the FAA could spell trouble for the airline in the future.

JSX is one of 19 airlines that could be affected by rule changes for the model it uses, according to the FAA.

Wilcox said he would appeal any imposed changes that would affect the business model.

“We would obviously exhaust all our remedies,” he said.

He also counts on the support of his regular investors, including JetBlue and United.

“When someone points a gun at you, you tend to hire bodyguards,” he said.

Currently, JSX offers customers the option to book airline tickets online, just like more traditional airlines.

However, the plane takes off from a private hangar rather than an airport.

Luggage is checked for explosives and passengers must pass through a weapons detector.

One of the pitfalls is that if a flight is delayed, travelers don’t have the convenience of an airport.

In addition, if a flight is canceled, there is not always an easy rebooking option.