Jetquity guarantees FlyExclusive fractional residual; IPO expected Dec. 8

Fractional buyers with FlyExclusive will be able to guarantee a floor residual value for their shares; IPO is expected on Dec. 8.

By Doug Gollan, November 15, 2023

FlyExclusive fractional owners can guarantee a floor on the residual value of their share purchases under an agreement with Dubai-based Jetquity Solutions. At the same time, the fifth-largest U.S. private jet operator by charter and fractional hours is expected to become publicly traded on Dec. 8, per its latest SEC filings.

Jetquity specializes in offering customized solutions to aircraft owners, operators, and fractional ownership programs, ensuring the protection of their investments and enhancing their financial security.

The strategic partnership with FlyExclusive will offer residual value guarantees for more than $350 million in aircraft for the Kinston, North Carolina-based operator’s light jet fleet.

It includes Citation CJ3+ and CJ3 Gen 2 types.

In a prepared statement, Jetquity CEO Asad Rahman said, “Our residual value guarantees will provide FlyExclusive’s clients with a competitive edge and enable them to forecast their financial outlay far more accurately than is possible with today’s market offerings.”

FlyExclusive CEO Jim Segrave added, “Partnering with Jetquity to offer residual value guarantees for our CJ3 aircraft is another way we can offer the best service and value to our customers. This collaboration ensures that fractional owners can invest in our state-of-the-art aircraft with confidence, knowing that their investments are protected.”

It announced its entry into the fractional marketplace in 2022.

Last month, it took delivery of its first fractional Citation light jets.

The program is an option with owners paying Jetquity 3.5% of the purchase price to guarantee a residual value of 50% at the end of their five-year term.

FlyExclusive IPO Date Set

Separately, Segrave tells Private Jet Card Comparisons received final government clearance to move forward with its SPAC-merger IPO. 

Shareholder vote to approve the merger with EG Acquisition Corp. is set for 10 am on Dec. 7.

That means FlyExclusive can ring the bell at the New York Stock Exchange the following day as a publicly traded company.

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