In addition to building its Red Label offering, Flexjet, Inc. brands Sentient Jet, FXAir are keys to future growth says Chairman Kenn Ricci.
While Flexjet has selected Gulfstream as the platform for its growth in the large cabin and ultra-long-haul private jet segment, it doesn’t necessarily mean anyone should expect a fleet order.
The company expects to grow its fleet to over 600 tails by early next decade, which implies acquisitions beyond those currently announced.
It expects to have around 360 jets by year’s end.
In an interview with Private Jet Card Comparisons, Flexjet, Inc. Chairman Ricci said there is ample opportunity to expand Flexjet’s G700 and G650 fleet via the nearly new pre-owned market.
Comparing the top tier of its Red Label offering – the G650s and G700s – to LVMH’s Cheval Blanc’s ultra-luxury hotels (The private equity firm backed by LVMH Chairman Bernard Arnault recently invested $800 million into the company), he also hinted at what might be in store for Flexjet, Inc., which includes jet card broker Sentient Jet, and FXAir, which sells memberships and ad hoc charter flights.
By the end of the year, he expects to have 30 G650s, including five in Europe.
There are currently three G700s operating, with one more coming by year’s end.
The new flagship has drawn three customers who bought 800, 400, and 200 hours, respectively.
That includes two first-time buyers for the brand, Ricci says.
What’s holding up an order with Gulfstream?
Ricci says, “There’s nothing in it for me.”
He continues, “We can do it by buying two at a time.”
Ricci explains:
‘There are particular needs of a large fleet operator that making a large order requires: maintenance support, engineering drawings, and so on. And so these orders are complicated because they’re not used to doing this kind of thing. I’ve been very vocal to people about wiring diagrams. Years ago, manufacturers came with all the documentation. Today, they hoard it and make you pay for access to it.’
Ricci also said he is not abandoning the Challenger 350/3500 platform, with six or seven of the Bombardier super-midsize aircraft coming next year.
However, the operator will exit its older Challenger 300s.
The Challengers, after leaving the fractional program, serve as backup.
They also provide on-demand lift serving FXAir, Sentient Jet, and the wholesale market.
Back to Flexjet, it expects to take over 20 Embraer Praetor 500s and Praetor 600s next year.
The Praetors come from the $7 billion February order with Embraer.
That included a firm order for 182 jets with options for 30 more.
While most of the attention has been around Flexjet, Ricci says that by building a distinct brand and product profile for both Sentient Jet and FXAir, those brands now have an opportunity for considerable growth.
Sentient Jet is currently around $500 million in revenues, with $50 million in profits, focusing exclusively on jet cards.
FXAir, which has both guaranteed rate and dynamic pricing memberships, as well as ad hoc charter, also has opportunities.
Earlier this year, the company rebranded European broker PrivateFly to FXAir.
It has transitioned the former PrivateFly jet card offering into a program similar to FXAir’s U.S. Aviator and Aviaton + memberships.
Ricci notes that Sentient’s revenues would put it in the top echelon in flight hours if it were an operator.
In North America, Flexjet is second in flight hours behind NetJets, Inc.
While Ricci declined to get into specifics, he did hint that Flexjet, Inc. is going to double down on its strategy of segmenting its offerings.
He has recently been saying he wants to create a proposition like the famed Augusta National Golf Club.
Even if you don’t play golf regularly, you still keep your membership.
How does that translate to a company selling fractional shares in private jets?
The segmentation could seek to make the top-tier offering more differentiated.
Flexjet has been expanding its private travel events.
LVMH may be known for fashion labels Louis Vuitton, Dior, and Dom Perignon champagne, but it also owns the Cheval Blanc and Belmond hospitality brands.
Belmond includes many iconic, unique hotels, luxury trains, river barges, and the like.
Among the notable are Rio’s Copacabana Palace, Hotel Cipriani in Venice, and in the Caribbean, Cap Jaluca, La Sammana, and Maroma.
Its luxury trains include the Venice Simplon-Orient-Express, Royal Scotsman, and Andean Explorer.
LVMH is also a 50% investor in the Orient Express brand, which French hospitality giant Accor is developing after it acquired it from SNCF several years back.
There is a luxury yacht concept, Orient Express Corinthian, currently in the building stage.
Flexjet’s Red Label concept, featuring dedicated pilots and design-led LXi interiors, focuses on super mid private jets and larger.
A Louis Vuitton interior is currently targeted for a G700 to be delivered in 2027.
Beyond that, Ricci says growth at the top of the Flexjet brand provides an opportunity for the Sentient and FXAir offerings, and further delineates Flexjet’s entry-point options, currently the Phenom 300 light jet and midsize Praetor 500.
Flexjet has also been expanding its own private terminals.
Ricci indicated a need to enhance ground experience more broadly.
He told Aviation Week that when customers “get bad catering and bad line service” at FBOs, it “reflects poorly on what we’re trying to do to deliver high-end service.”
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