Thomas Flohr, CEO of Vista Global (Red Wing falls under VG), said the daily bookings for VG exceeds capacity by 30%.
The excess must be off-fleeted to others. Before RW acquisition that off-fleet for light jet requirements could've gone anywhere but the likelihood that those requirements would come directly to RW makes sense. Memberships in VG/XO travel programs increased 3x in 2020. Many of those were done at low or zero initial fees unlike pre-Covid.
When they come up for renewal, some may balk at paying the renewal annual fee but instead of losing them outright, VG/XO will have an affordable entry point for them with RW aircraft which will be at a lower cost per hour. The customer doesn't lose his "private jet" status but now flies with RW.
Some will leave, some will stay with VG/XO and others will choose a more budget friendly option with RW...having light jet options allows VG/XO to capture more money instead of it going out the door to competitors.