VistaJet Founder Proposes Utilizing His Majority Stake to Enhance Company Liquidity

Thomas Flohr, the founder and chairman of VistaJet Group Holding Ltd., which owns VistaJet (Malta), has proposed leveraging his 86% ownership stake to improve the company’s liquidity. In a communication to investors referenced by Bloomberg News, the Swiss businessman described his share as a substantial equity buffer that could be tapped to strengthen the company’s financial position.

VistaJet, known for its subscription-based private jet service akin to that of NetJets Aviation, reported adjusted EBITA earnings of $801 million for 2023, a slight decrease from $841 million in 2022. As of the end of 2023, VistaJet’s total debt was recorded at $3.9 billion, an increase of $133 million from the previous year, with available liquidity standing at $270 million.

The company’s extensive fleet includes 266 aircraft across its various subsidiaries, such as VistaJet (Germany) and XOJET Aviation. The fleet features models from leading manufacturers like Bombardier Aerospace, Embraer, Cessna Aircraft Company, Dassault Aviation, and Gulfstream Aerospace, with 93 of these aircraft either recently refurbished or currently undergoing refurbishment.

Flohr highlighted the unique business model of VistaJet, where the company assumes full asset risk associated with its aircraft, contrasting with competitors who often pass this risk onto their clients. “While our peers typically offload the asset risk to their clients, we looked at what commercial airlines do, and our balance sheet is no different from theirs,” he stated. This strategy positions VistaJet similarly to commercial airlines in terms of financial structure, focusing on robust asset management and client service continuity.