Moody's completes periodic review of ratings for Flexjet, Sentient Jet parent

By Doug Gollan, April 25, 2021

Moody’s Investor Services announces completion of a periodic review of ratings of One Sky Flight, LLC, the parent of Flexjet, Sentient Jet, FXAIR, and PrivateFly

Moody’s Investors Service has completed a periodic review of the ratings of One Sky Flight, LLC. It includes other ratings that are associated with the same unit. OneSky includes Flexjet, the second-largest fractional provider, leading jet card provider Sentient Jet, plus on-demand charter brokers FXAIR and PrivateFly.

The review was conducted through a portfolio review discussion held on April 19. Moody’s reassessed the appropriateness of the ratings. It considered the context of recent developments and the financial and operating profile of similarly rated peers.

The review did not involve a rating committee. Since 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action. It is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review. Hence ratings were not impacted by this announcement, according to Moody’s.

Key rating considerations for Flexjet, Sentient Jet

Moody’s said One Sky Flight’s B3 corporate family rating reflects low financial leverage, strong liquidity, and a well-established position as a leading provider of private aviation.

In the rating, the agency also considers the cyclical nature of demand for transportation by private jet. It notes private aviation has remained robust during the coronavirus pandemic. That has translated to a healthy set of credit metrics. It also recognizes the company’s successful cost control and good operating performance in the face of Covid headwinds.

This document summarizes Moody’s view as of the publication date. It will not be updated until the next periodic review announcement. That will incorporate material changes in credit circumstances (if any) during the intervening period, it said in the release.

A Moody’s report from last August pegged OneFlight annual gross revenues at $1.6 billion for the year ending June 30, 2020. The company is majority-owned by management through Directional Aviation, alongside Eldridge Industries, LLC, Resilience Capital Partners, and other co-investors. Its fleet as of mid-2020 was 165 aircraft.

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