VistaJet Chairman Rejects IPO, Cites Growth
VistaJet Group Holding is not planning an initial public offering (IPO) at this time, according to founder and group chairman Thomas Flohr. Speaking on Dubai Eye 103.8 News radio, Flohr firmly stated, “Right now, it’s not in the plan,” dismissing recent speculation that linked a possible IPO to a fundraising effort involving convertible preference shares.
A Bloomberg report recently suggested that VistaJet Global might consider raising funds by selling convertible preference shares to a consortium led by Singapore-based RRJ Capital, one of Asia’s largest private equity firms. The report tied the potential IPO to the broader demand for private jet chartering. However, Flohr made it clear that while VistaJet remains open to exploring the right opportunities for the company, an IPO is not on the horizon. He emphasized his satisfaction with the current structure, noting that he still owns about 84% of the company. “We will always look at alternatives for the company,” Flohr added, “but right now it’s not in the plan.”
In addition to addressing IPO rumors, Flohr responded to a Financial Times report stating that VistaJet’s cash reserves had dipped to USD62 million—the lowest level since 2020—due to a decline in the sales of flying hours. According to the report, the number of flying hours purchased in advance fell by 10.5% in the nine months leading up to September 2024 compared to the previous year. The decline was attributed to reduced travel by VistaJet’s ultra-wealthy clientele. The FT report also highlighted that the company had accumulated USD4.5 billion in debt from aircraft purchases and acquisitions of rivals, and it was seeking up to USD1 billion in new financing. This came after a debt increase in 2023 to USD3.9 billion, an uptick of USD133 million from the previous year.
Flohr was quick to dismiss these negative portrayals as part of “a campaign against VistaJet” with a hidden agenda. “Let’s focus on the real facts. And the facts are: the company continues to grow. People are spending money,” he insisted. Flohr highlighted that VistaJet experienced strong growth in 2024, with a 20% increase in new members, reaching approximately 1,300. He noted a significant shift in the market as ultra-wealthy clients move away from full aircraft ownership toward a flexible subscription model that VistaJet offers. Under this model, clients pay an upfront annual fee under multi-year contracts, a strategy that has contributed to a positive cash flow when excluding remaining payments from acquisitions made in 2022 and 2023.
Founded 21 years ago with just 25 business jets, VistaJet now operates around 360 aircraft worldwide. The group holds its own air operator certificates in Germany and Malta, and it further expands its presence in the United States through partnerships under the Vista America brand. Flohr’s remarks come amid a broader discussion about evolving client preferences and financing strategies in the private aviation market.
Despite recent reports hinting at financial pressures and an impending IPO, VistaJet Group Holding remains committed to its current private structure. With robust growth, an expanding member base, and a clear strategic focus on its subscription model, VistaJet is well positioned to continue leading the private jet charter industry while maintaining its strong financial and operational foundation.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com