Vista Global’s deal yesterday with Red Wing that brings it 15 light jets to XOJET is the latest and doesn’t look to be the last
In just over 3 years, we’ve tracked over 50 deals, fundraises, launches, and bankruptcies
(Updated Jan. 11, 2021) The COVID-19 crisis may be bringing the already simmering mergers and acquisitions market for private jet operators and brokers back to a boil.
Two new factors are driving increased interest. Research from McKinsey shows less than 10% of households who can afford private aviation were using it before the pandemic. In contrast, a study by the European VLJ operator shows there are 30 times fewer contact points when flying privately compared to the airlines.
In the past 3.5 years, we’ve tracked over 50 mergers, acquisitions, fundraising announcements, launches, major fleet orders, and bankruptcies involving notable private jet operators and brokers.
While terms are often not announced, clearly, there have been billions of dollars in bets. Not all have worked out, but that doesn’t seem to be an issue.
Vista Global’s XOJET Aviation acquisition of15 Citation V Ultra’s from Red Wing Aviation is just the latest. It’s actually not clear the nature of the structure is not being disclosed. Either way, Vista said it plans to build its U.S. light jet count to 50, so that means more action ahead.
Red Wing was the 19th largest Part 135 in 2019, according to Argus. XOJET ranked third. A sell-sheet shows the light jet operator with $25.8 million in revenue last year and EBITDA of $3.2, or a profit margin of 12.4%.
If historical performance is an indicator of future activity, expect more deals. Seven of the nine largest Part 135 charter operators have been involved in mergers and acquisitions activity in the past 18 months.
Private Aviation Deal Book
Scorecard of Leading Private Jet Charter and Fractional Fleet Operators, and Charter Brokers – Mergers, Acquisitions, Fundraises, Launches, Orders, and Bankruptcies
Who | When | What |
Wheels Up | Jan. 2021 | Wheels Up acquires 59 more aircraft with #9 largest charter operator Mountain Aviation |
Blade Urban Mobility | Dec. 2020 | Blade will become publicly listed on NASDAQ through a business combination with Experience Investment Corp. (NASDAQ: EXPC), a public entity sponsored by an affiliate of KSL Capital Partners. The transaction is expected to close in the first half of 2021. |
Zanite Acquisition | Nov. 2020 | Zanite Acquisition Corp. helmed by Directional principal Kenn Ricci launches IPO priced at $200 million |
Vista Global | Nov. 2020 | XOJET Aviation acquires 15 Citation Ultras and a “majority controlling” stake of #19 largest charter operator Red Wing Aviation |
JetSuite | Sept. 2020 | Exits Chapter 11 |
Zanite Acquistion | Oct. 2020 | Directional Aviation (Flexjet, Sentient Jet, PrivateFly, FXAIR) Principal Kenn Ricci launches Zanite Acquisition SPAC as co-CEO to acquire aviation companies with $200 million+ funding |
Genesis Park | Sept. 2020 | Houston-based SPAC lists private aviation operators as a potential target |
Surf Air | Aug. 2020 | Plans $200 million SPAC via Global Emerging Markets Group |
Wheels Up | Aug. 2020 | Launches whole aircraft sales unit |
Directional | July 2020 | Launches broker FXAIR with plans to access a fleet of 30+ Challenger 300s and Globals exiting Flexjet’s fractional fleet |
Jet Linx | July 2020 | Buys Meridian management and charter business to expand at Teterboro, the busiest U.S. private jet airport |
Wing Aviation | June 2020 | #25 largest charter operator Wing Aviation merges aircraft management and charter business with Western Airways |
Directional | May 2020 | Affirms 2020 launch for Flexjet’s European fractional program is delayed until 2021 |
Elevate Holdings | June 2020 | Private Jet Services subsidiary signs as exclusive charter sales agent for iAero’s 35 VIP Boeing 737-400s |
JetSuite | April 2020 | Files for Chapter 11 leaving SuiteKey jet cardholders out $50 million |
Wheels Up | March 2020 | Buys #1 ranked charter operator Gama Aviation Signature |
FlyExclusive | March 2020 | #8 ranked charter operator buys Gulfstream operator Sky Night |
Victor | March 2020 | Management buys broker after parent company goes into receivership |
Wijet | Feb. 2020 | European VLJ operator closes and liquidates |
Surf Air | Feb. 2020 | Buys charter platform BlackBird Air and renames itself Surf Air Mobility |
Alyssum | Feb. 2020 | Charter broker Victor parent enters administration |
Jet Edge | Jan. 2020 | #7 largest charter operator buys charter operator JetSelect |
Wheels Up | Dec. 2019 | Buys #4 operator Delta Private Jets; Delta Air Lines values its 27% stake in Wheels Up at $240 million |
Air Partner | Dec. 2019 | Buys Redline Assured Security |
XJC Aviation | Dec. 2019 | U.K. operator placed into administration |
Elevate Holdings | Nov. 2019 | Private Jet Services Group subsidiary buys The Flight Exchange |
Qatar Airways | Oct. 2019 | Qatar Executive unit places $1 billion + order for Gulfstream G700s |
Directional | Oct. 2019 | Flexjet unit places $1 billion + order for Gulfstream G700s |
Directional | Oct. 2019 | Flexjet unit places $1.4 billion order for Embraer Praetor 500s, 600s, and Phenom 300s |
Directional | Oct. 2019 | Launches charter payment platform Tuvoli |
Wheels Up | Sept. 2019 | Buys tech platform Avianis |
Wheels Up | Aug. 2019 | Raises $128 million in Series D from Franklin Templeton, T. Rowe Price, and Fidelity Management at $1.1 billion valuation |
Alliance Aviation | July 2019 | Former Dumont executives launch broker and operator Alliance Aviation |
Wing Spirit | July 2019 | Hawaiian start-up charter operator orders 15 HondaJet very light jets |
Wheels Up | June 2019 | Buys #9 operator TMC Jets |
Vista Global | June 2019 | Merges XOJET and JetSmarter brokerages to form XO |
Elevate Holdings | June 2019 | Private Jet Services Group creates Elevate Holdings and launches charter operator Elevate Jet |
Vista Global | May 2019 | Refinances $550 million of senior unsecured bonds |
BlackBird Air | May 2019 | Raises $10 million from New Enterprise Associates |
JetCard Plus | May 2019 | Jet card broker closes, leaving Treasury Secretary Steve Mnuchin with a 200k loss |
Jet Linx | May 2019 | Buys Elliot Aviation’s management and charter business |
Vista Global | April 2019 | Buys tech-led seat-sharing broker JetSmarter |
Jet Edge | Jan. 2019 | Raises $60 million from Solace Capital Partners |
PrivatAir | Dec. 2018 | European operator enters receivership |
Surf Air | Dec. 2018 | European subsidiary enters liquidation |
NetJets | Oct. 2018 | Announces order with options for 325 private jets from Textron’s Cessna division |
Directional | Sept. 2018 | Buys fast-growing U.K.-broker PrivateFly |
Vista Global | Sept. 2018 | Buys #3 operator XOJET Aviation fleet and commercial operations; becomes minority owner in Part 135 operator |
VistaJet | Sept. 2018 | Raises $200 million from Rhone Capital, forms Dubai-based Vista Global Holding |
Ultimate JetCharters | Aug. 2018 | Announces acquisition by OneJet is off |
Jet It | Aug. 2018 | New entrant launches HondaJet fractional ownership program |
Wijet | June 2018 | Places U.K. subsidiary Blink into receivership |
ImagineAir | May 2018 | Atlanta-based Cirrus SR22 air taxi shuts down without warning |
OneJet | May 2018 | Announces it will acquire Ultimate JetCharters for a combined fleet of 25 aircraft |
Directional | April 2018 | Buys Italian charter operator and management company Sirio |
JetSuite/JSX | April 2018 | Announces undisclosed investment from Qatar Airways and JetBlue |
Dumont | Mar. 2018 | Acquires 27 Dassault Falcon 2000s from NetJets to be delivered through 2019 |
Wijet | Feb. 2018 | Orders 16 HondaJet very light jets to replace Cessna Mustang fleet |
Victor | Jan. 2018 | Raises $18 million from BP Ventures and BBA Aviation; forms Alyssum Group as a holding company |
PrivateFly | Nov. 2017 | U.K.-brokers buys U.S. broker Bird Dog Jets |
Wheels Up | Oct. 2017 | Wheels Up raises $117.5 million from AccorFidelity, T. Rowe Price, NEA and others |
Stellar Labs | Oct. 2017 | Raises $26.3 million in Series A equity financing to develop a real-time charter booking platform |
Apollo Jets | Fall 2017 | Broker with an estimated $100 million + revenues; undisclosed with Talon Jets, 16th largest Part 135 operator |
Victor | Sept. 2017 | Raises $10 million from BP Ventures |
Zetta Jet | Sept. 2017 | Bombardier Global Express operator files for Chapter 11, then 7 amid fraud charges |
StarJets International | Sept. 2017 | Blue Star Jets co-founder Ricky Sitomer acquires Advanced Defense Technology in a reverse merger |
VistaJet | Aug. 2017 | Raises $150 million from Rhone Captial |
JetSmarter | Aug. 2017 | Raises undisclosed funding from Clearlake Capital Group, L.P., and Leucadia National Corporation |
Wheels Up | July 2017 | Secures $90 million in debt financing from KKR |
Stratajet | June 2017 | After raising $8 million to develop realtime charter bookings, Stratajet shutters |
Surf Air | June 2017 | Buys Texas-based shared flight operator RISE |
Summary by 5 Largest Private Aviation Groups
Based on Private Jet Card Comparisons‘ ranking of top for-hire private aviation companies (2019 Part 135 and Part 91K flight hours data from Argus).
NetJets (1)
- Orders and options for 325 midsize and super-midsize aircraft from Textron Cessna from the unit of Berkshire Hathaway, which includes Executive Jet Management, the second-largest Part 135 operator
Wheels Up (2)
- Multiple fundraises
- Acquires TMC Jets, Delta Private Jets, Gama Aviation Signature
- Acquires tech platform of Avianis
- Launches of Aircraft Sales group
Directional Aviation – OneSky Flight (3)
- Principal Kenn Ricci fundraises separate SPAC targeting aviation acquisitions
- Acquires Italian AOC Sirio and U.K.-broker PrivateFly
- Launches premium charter broker FXAIR
- Launches charter payment platform Tuvoli
- $1 billion + orders for Gulfstream and Embraer private jets
Vista Global Holding (4)
- Multiple fundraises from Rhone Capital and refinances bonds
- Acquires XOJET Aviation and JetSmarter
- Launches XO by combining retail brokerages of JetSmarter and XOJET
- Undetermined transaction with Red Wing Aviation
Jet Linx Aviation (5)
- Acquires aircraft management and charter businesses from Elliott Aviation and Meridian
- Opens bases in Austin, Boston, Chicago, Minneapolis, and New York (Teterboro)
On the sidelines (so far)
U.K.-based charter broker Air Charter Service, which claims annual revenues of nearly $700 million, has been adding offices around-the-world. PlaneSense, a seller of fractional shares on the Pilatus PC-12 and PC-24, has been growing organically by adding its jet program. Solairus Aviation (ranked 7th), Mountain Aviation (10th), Airshare (11th), Clay Lacy Aviation (12th), Jet Aviation, a unit of General Dynamics (13th), Corporate Flight Management, known as Contour Aviation (14th), and Aero Air (15th) are other large players so far not involved in any transactions that have been reported during the past three years. 18th ranked Nicholas Air, which sells jet cards and fractional shares earlier this year, said it was adding two new Phenom 300s.
5 comments
Comments are closed.