January 28, 2025
The Flexjet firm order includes Phenom 300Es, Praetor 500s, and Praetor 600s, plus options for 30 more jets and an extended service agreement.
During the opening of its $50 million operations center and headquarters in September 2023, Flexjet, Inc. Chairman Kenn Ricci teased an upcoming order for new private jets.
The order was announced earlier today and is valued at up to $7 billion.
‘I’m as bullish on private aviation, fractional ownership and Flexjet as I have ever been’
– Mike Silvestro, Co-CEO, Flexjet, Inc.
It is “the largest firm order” in history for both Embraer Executive Jets and the fractional operator.
Included is a firm order of 182 aircraft.
There are also 30 options and an enhanced services and support agreement as part of the deal.
The net effect is that Flexjet’s fleet size will nearly double to around 600 aircraft by 2031.
Flexjet, Inc. Co-CEO Mike Silvestro says the world’s second-largest commercial operator of private jets currently has over 300 aircraft, with around 150 from Embraer.
The deal follows an oversubscribed $550 million bond offering in late December.
“I’m as bullish on private aviation, fractional ownership, and Flexjet as I have ever been,” Silvestro said during an interview last night before the announcement.
Silvestro has been in the corner office since 2008 and entered the industry in 2000.
In 2023, he was honored with the Living Legends of Aviation Lifetime Aviation Industry Award.
Last year, private aviation posted its third-best year ever based on flight hours despite declining for the third straight year.
Its 1.1% year-over-year dip was offset by a 6.5% gain in fractional flying.
Today’s order includes Praetor 600, Praetor 500, and Phenom 300E models.
The Praetor 600 is a super-midsize jet, and the 500 is midsize.
The Phenom 300E series is a light jet.
Deliveries will begin in 2026.
Deliveries this year come from a $1.4 billion order placed in 2019.
Silvestro said, “The vast majority of those firm and option orders” are Praetors.
He called it a reflection of three trends he classified as “younger, larger, longer.”
New customers are starting at a younger age – in their 40s.
Silvestro said that instead of starting in light jets, they are entering bigger aircraft and flying longer segments.
According to the most recent survey of Private Jet Card Comparisons subscribers, 95.8% of Flexjet customers rate its service as Excellent/Very Good, compared to 73.3% for the overall industry of fractional and jet card sellers.
Silvestro said the U.S. will remain the dominant market for customers.
However, Flexjet is looking to expand its geographic customer base.
With the additional aircraft, Flexjet could base aircraft in the Middle East, which Silvestro calls an extension of its European operations.
It has 14 aircraft in its European fleet after launching its fractional program there during the Covid pandemic in 2020.
Reports from Saudi Arabia yesterday said the Kingdom’s civil aviation authority will allow foreign operators to operate domestic flights starting in May 2025.
It is part of a government plan to build private aviation into a $2 billion industry by 2030, supporting 35,000 jobs.
“We are looking very seriously at the best way to serve those Middle East customers,” Silvestro said.
Embraer President & CEO Michael Amalfitano said, “We are delighted with Flexjet’s renewed commitment to Embraer through this comprehensive purchase agreement, which strengthens even further our strategic partnership of over 20 years.”
The OEM boss added, “We are very excited to have many more loyal Flexjet fractional owners enjoy access to our industry-leading Phenom and best-in-class Praetor jets.”
Last year, Embraer delivered 130 private jets, an increase of 13% despite continuing supply chain challenges.
Embraer’s relationship with the company dates back to 2003 with Flight Options.
Ricci founded Flight Options before selling it to Raytheon in 2002 and repurchasing it in 2008.
He then bought Flexjet from Bombardier in 2012, merging the two flight providers and transitioning to the Flexjet brand.
Flexjet CEO Michael Silverstro said, “Now in our 30th year at Flexjet, it seems fitting to extend our rewarding and long-term relationship with Embraer with this historic and groundbreaking firm order.”
Silvestro noted, “The Praetor 600 was so well accepted in Europe, we opted to include it in our North American fleet in 2023, extending our Embraer fleet across two continents.”
Flexjet has launched several Embraer products, including the Legacy Executive in 2003, the Phenom 300 in 2010, the Legacy 450 in 2016, and the Praetor 500 and 600 in 2019.
It received Embraer’s 100th Phenom 300 in 2012 and the OEM’s 1,000th executive jet in 2016.
Silvestro declined to discuss other possible fleet orders, saying he was focused on Embraer today.
Embraer may have beat out Bombardier for the super-midsize part of the order.
A dozen Challenger 3500s, which were thought to be headed to Flexjet, ended up going to rival NetJets early in 2024.
In 2019, Gulfstream announced Flexjet as its North American launch fleet customer for the G700.
Back-of-the-envelope math would suggest if Flexjet expects to have about 600 aircraft by 2031, currently has 300, and has tabbed Embraer for 212 orders and options, it is still in the market for at least 90 jets, not accounting for retirements.
Flexjet, Inc. also owns jet card broker Sentient Jet, on-demand broker FXAir, several MROs, and management companies.
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