Article in Forbes on acquisition of Red Wings Aviation by XOJET wholly owned subsidiary of Vista Global.
Reports are 50 more light jets to be added to RA fleet. Good news for RA
https://www.forbes.com/sites/douggol...3c720f3428b9It was only a decade ago the best minds in business aviation believed the next big market for private jets was China and the Far East. What a difference 10 years does make.
Thomas Flohr's announcement this morning that he is immediately expanding his U.S. fleet with 15 Cessna Citation V Ultra light jets and has plans to grow it to more than 50 indicates around two-thirds of Vista Global's XO and VistaJet branded aircraft could be flying with N-registered tail numbers.
For a company that has made its name by flying billionaires and oligarchs on ultra-long-range jets from places like Almaty and Kinshasa to global capitals like Tokyo and London, the future suddenly looks like it will include a healthy dose of hops from Tulsa to Little Rock.
It's the type of flying that is the backbone of American business aviation, flights under two hours, often connecting cities where it's not efficient to drive, but without nonstop airline flights, making private travel a smart option.
In fact, a press release notes, “XO’s membership base has nearly doubled since April, and its new members, as well as existing customers, are increasingly looking for solutions for their short distance travels. Many flyers, living or working outside the major aviation hubs, are facing firsthand the restrictions resulting from deep reductions in commercial aviation services. A light jet is the perfect solution to travel short distances between underserved locations.”
Each aircraft will be upgraded to match cabin standards of the current XO fleet, the company said.
The move comes
two years to the month after Flohr, VistaJet's founder and chairman, closed on his acquisition of XOJET and its 43 super-midsize jets. He followed that up by buying tech-focused broker JetSmarter.
XO is the result of
merging the charter sales units of the two companies.
Vista Global Holding Limited, Flohr's Dubai-based parent company, restricted by foreign ownership rules, has a minority stake in XOJET Aviation LLC, the
Part 135 charter operator that flies his airplanes that are based here.
Of course, that's the point. Previously VistaJet had to outsource its U.S. registered aircraft operations to a third-party.
Needless to say, Flohr isn't the only one with a bullish outlook about America’s private aviation opportunity. U.K.-based brokers Air Partner, Air Charter Service, and Victor have all been expanding their footprint and the products they offer here.
Doubtless, there will be more overseas interest. McKinsey's recent study claimed less than 10% of U.S. households that can afford the private skies were partaking before COVID-19.
While changes in tax laws under a Biden administration may negate benefits of owning your jet that came under legislation put forward by President Trump, that may only spur interest in membership and charter solutions like the ones XO and VistaJet sell. Expect
more announcements.