B727DRVR

Hey all,

Congratulations to XOJET for expanding your fleet types by acquiring Red Wing Aero..

prt135

The same Red Wing Aero plagued with dozens of lawsuits from former pilots?

MinRest

Why on earth would XO by that dump...

chase

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.

shrsailplanes

XO is gonna fly a bunch of Citation V’s now?

chase

I’ve read the posts on APC and other info about RW. My first brush assessment (which is worth zero..6-9 month assessment, much better) is this will be good for XO and RW.

First of all, XO has 51% US ownership and RW will fall under that organizational structure. RW we are told will still operate independently as they do now. Will their tails fall onto the XO certificate in the future, who knows but for now it is a good thing and my reasons are below.

1. I don’t know the purchase price but suspect XO got a good price. Interest rates are at an all time low. Financial institutions found this a good deal to support. Look around at other consolidations in private jet world, consolidation is happening. Previous struggles with RW showed they were cash strapped..owner (creditors) must’ve found the offer OK enough to allow owner/founder to probably slowly transition out. I would expect new leadership within 12 months or less but purely speculating..not uncommon in these type of buyouts.

2. XO when consolidated with Vista Jet suddenly had an “up-sell” options for clients, CL350 or Global. XO had been off loading to other 135 carriers clients who requested light aircraft/less expensive options for flights 2 hrs or less. Not efficient in XO equipment. RW has that equipment and now that revenue will stay in house.

3. New Memberships have increased dramatically since April...yields have decreased according to multiple 135 leaders. Yields on shorter flight are higher and demand is higher due to costs and simply many who use to fly commercially were flying on short haul but don’t want the exposure to Covid. XO didn’t have the type equipment needed to be profitable on shorter routes, but now they do with RA.

4. Plans to purchase 50 more light aircraft shows confidence this market will be around post Covid. Easier to do that with an established 135 company. Plug and play

5. Mx facility. XO will be able to now use a wholly owned subsidiary for some of Mx work..would expect costs to be lower than using our primary Duncan Mx contractor. XO has tie in with JSSI, the Costco in plane service, management, parts and Mx so the RW facility gets that benefit that they didn’t have before.

6. More traffic flowing to RWA...broader marketing ties with XO versus using whatever RWA had before. Plus the ability to have fewer empty legs wit tie ins to Jetsmarter program. Filling empty seats and crowdsourcing.

Lots of speculation above and no inside knowledge other than looking at press releases and public info. Realize RWA pilots in the past have had MAJOR issues with RWA management/ops.

Don’t know current temp of water at RWA but this has the makings of a better future IMHO than the cards tRWA pilots current have in their hands.

It’s been a little over a yr since VJ/XO joined forces but having good leadership at the top, i.e. Kevin Thomas, is a good thing and I suspect he will be closely watching how the RWA ops melds into a solid operation that our clients will see as seamless as they flow between aircraft/personnel.

It would be a foolish investment if that was not the case..lots of self interest into making the RWA brand better.

again you get what you paid for with the drivel above.

chase

Red Wing pilots will and are now. No flow through between plane types laid out or discussed that I’ve seen. Way too early to know full answers on hiring, who will do it or other typical questions regarding hiring, flight ops, scheduling, etc.

The first bricks have laid so the full sketch of the house is known to only a few....and of course keyboard geniuses 😎 who have too much free time😉 on their hand.

1.5 yrs at XO and love it. I call the Oct 19 VJ/XO event as XO 2.0 going forward..this is just another part of the bricklaying of making the XO brand more widely known and appealing to a whole new group of travelers that weren’t there Pre Covid.

Shenzi105

It's 2021 and XO is adding 17 year-olds Citation Ultras to its fleet? Smashing!

prt135

17 years old? Haha. Looks like their average fleet age is around 25 years old based off their website fleet list

Smooth at FL450

Hopefully any RWA employees with stock grants get a smaller shaft job by this deal than all XO employees did.