November 8, 2024
‘[W]e cannot guarantee the ability to refund all or any portion of your balance,’ Volato is telling Insider clients.
Insider jet card members requesting refunds from Volato have received letters warning the 2021 start-up is “at risk of not being able to continue as a going concern.”
Volato has 265 jet card customers, according to previous statements.
JetSuite’s 2020 bankruptcy saw some Suite Key members receiving less than one cent on the dollar.
The email notes the Insider jet card was marketed as an as-available program.
In other words, it did not guarantee the availability of aircraft.
‘While we understand you may have previously requested a refund or might wish to request one in the future, we cannot guarantee the ability to refund all or any portion of your balance.’
– Volato email to Insider members requesting refunds
According to the letter, “The Insider program is an as-available program, and as of September 1, Volato no longer has flight availability due to our new agreement with FlyExclusive.”
It notes, “To continue providing you with flight availability and to offer an alternative to the risks associated with a Volato refund, FlyExclusive has agreed to options that allow you to receive a full flight credit applicable to a FlyExclusive program.”
The Volato email adds, “We recognize that transferring your balance to FlyExclusive may not be your preferred choice, but we strongly believe this is the best recovery option for all Insiders to retain value.”
Read the full email below:
The Insider program is an as-available program, and as of September 1, Volato no longer has flight availability due to our new agreement with flyExclusive. To continue providing you with flight availability and to offer an alternative to the risks associated with a Volato refund, flyExclusive has agreed to options that allow you to receive a full flight credit applicable to a flyExclusive program.
While we understand you may have previously requested a refund or might wish to request one in the future, we cannot guarantee the ability to refund all or any portion of your balance. The company has secured creditors who must be paid ahead of any unsecured Insider accounts. Additionally, as stated in our recent public filings, Volato is at risk of not being able to continue as a going concern.
We recognize that transferring your balance to FlyExclusive may not be your preferred choice, but we strongly believe this is the best recovery option for all Insiders to retain value.
If you would like to discuss your options to move your funds to FlyExclusive, please reach out and we can set up a call with a representative
Following the aircraft management agreement with FlyExclusive earlier this month, Volato said it would continue.
However, it would focus on its Vaunt empty-leg program and sell fractional shares for aircraft currently on order.
Today, Vaunt’s website posted a notice saying, in part, “You may experience a temporary decrease in flight activity within Vaunt.”
Volato had previously said FlyExclusive would be adding its empty-leg flights.
Last week, Volato reported that Honda Aircraft had terminated that HondaJet fleet order agreement.
A Volato representative declined to comment beyond saying most Insider members were taking the matching funds offer from FlyExclusive.
It was one of three options presented to Insider members.
Additionally, they could request a refund per the terms of their jet card agreements.
READ: Refundable Jets Cards – The Good And The Bad
Volato had blamed widening Q2 losses on costs associated with scaling up, its IPO, and delays in aircraft deliveries.
“[O]ur ability to fully capitalize on our operational strengths was impacted by ongoing delays in plane deliveries. We are optimistic that as plane deliveries resume and are fully sold, our enhanced operations will help advance our path to profitability,” Volato Founder and CEO Matt Liotta said in announcing the Q2 results.
Volato ended H1 2024 ranked North America’s 17th-largest charter/fractional operator, with flight activity up 11.1% per Argus.
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