Volato, the Executive Jet Startup, Makes Public Debut Through SPAC
Volato, a pioneering executive jet startup, is set to go public via a special purpose acquisition company (SPAC) in a strategic move to list on the esteemed New York stock market. Partnering with the listed entity PROOF Acquisition Corp I (NYSE: PACI), the anticipated pro forma enterprise value of the combined entity stands at an impressive $261.1 million. Once listed, the company will trade under the ticker symbol SOAR, while retaining the esteemed Volato brand.
Founded in 2021 by the visionary tech entrepreneur Matt Liotta, Volato identified a lucrative niche in providing executive aviation services with small aircraft. The company offers a unique fractional ownership plan, allowing customers to purchase shares in aircraft, ranging from 1/16 to 100% of the total price. Subsequently, users pay an annual management fee, along with a usage-based rate. An intriguing aspect of Volato’s offerings is the opportunity for fractional jet owners to generate revenue by renting out co-owned aircraft to other users.
Liotta shared insights into the rationale behind the company’s focus on Honda Jet operations, stating, “We looked at this space and realized that most executive aviation trips in the US involve less than four people and journeys that are less than two hours long.” The HA-420 HondaJet, a remarkable light business jet with a 1,600-mile range and capacity for up to seven passengers, serves as the backbone of Volato’s fleet. Priced between $5-6 million, this aircraft is an attractive choice for their target market.
Currently, Volato operates 18 Honda Jets, with an additional 23 on order. While Honda Jets will remain prominent in their fleet, the company has also placed orders for Gulfstream G280 aircraft, catering to missions that require a larger jet.
In 2022, during its first full year of operation, Volato achieved an impressive $96 million in revenue, highlighting the company’s strong potential in the market.
Concurrently with the listing, Volato successfully concluded a substantial $48 million series A preferred equity round. Out of this amount, $10 million represents fresh funds infused into the company, while the remaining $38 million stems from previously issued convertible notes that have now been converted into equity.
Despite the business combination, the existing Volato owners will retain an approximate equity stake of 63.5%, affirming their commitment to the company’s continued growth. In response to inquiries about the capital structure, Liotta emphasized, “We are not taking any money off the table,” indicating their dedication to the venture’s expansion and development.
Volato’s decision to go public through a SPAC and its unique approach to executive aviation services underscore its potential for soaring success in the dynamic market landscape. As it embarks on this transformative journey, the company stands poised to make waves in the aviation industry, fueled by its innovative vision and robust growth strategies.