Comparing XOJET/Vista business to others
05-17-2023, 04:54 AM
#21
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05-19-2023, 06:01 PM
#22
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https://www.ft.com/content/57e19c7c-...b-efc6c361873e
Read full article above
To many, Thomas Flohr is a genius who took one look at the private jet industry and thought he could do better. A self-described “asset finance guy”, he started as a first-time jet owner trying to “sweat the asset” and VistaJet was born. Nineteen years later, with hundreds of aircraft, the 63-year-old is an aviation superstar taking on the market leader, Berkshire Hathaway’s NetJets, through audacious dealmaking and bold investment. The question mark hanging over the Swiss entrepreneur’s strategy is whether Vista can turn a profit and support the debt he used to build it. Net losses amounted to $436mn over the past four years, according to company disclosures to bond investors. Total debt more than doubled last year to $4.4bn as Vista’s fleet increased by half to 360 jets, helped by the acquisitions of Air Hamburg, Europe’s largest charter operator, and US-based Jet Edge.
It has also spent billions of dollars on top-of-the-line planes from Bombardier, deliveries that were essential to the Canadian manufacturer through years of government-backed restructuring. Vista’s pitch to customers of its so-called Jet Card is a superior experience, without the inconvenience or expense of maintaining a luxury asset that spends most of its life on the ground. “We’re able to sell a guaranteed-availability model,” Flohr told the Financial Times at his Mayfair sales office, adding that the 365-days-a-year coverage “is better than aircraft ownership”. Vista’s fleet is scattered around the globe like an elite taxi service ready to pick up the next fare. With as little as 24 hours’ notice, customers can travel in one of the Dubai-based company’s 18 Bombardier Global 7500s, the world’s fastest business jet able to fly nonstop from Hong Kong to New York. Subscription sales have supported cash flows. At the end of 2022, customers had paid a total of $831mn up front for hours yet to be flown, but Vista had only $134mn cash left in the bank, according to company disclosures. The combination of debt, net losses and short-term liabilities prompted auditor EY to warn in its opinion on the 2022 accounts that “a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern”.
Read full article above
To many, Thomas Flohr is a genius who took one look at the private jet industry and thought he could do better. A self-described “asset finance guy”, he started as a first-time jet owner trying to “sweat the asset” and VistaJet was born. Nineteen years later, with hundreds of aircraft, the 63-year-old is an aviation superstar taking on the market leader, Berkshire Hathaway’s NetJets, through audacious dealmaking and bold investment. The question mark hanging over the Swiss entrepreneur’s strategy is whether Vista can turn a profit and support the debt he used to build it. Net losses amounted to $436mn over the past four years, according to company disclosures to bond investors. Total debt more than doubled last year to $4.4bn as Vista’s fleet increased by half to 360 jets, helped by the acquisitions of Air Hamburg, Europe’s largest charter operator, and US-based Jet Edge.
It has also spent billions of dollars on top-of-the-line planes from Bombardier, deliveries that were essential to the Canadian manufacturer through years of government-backed restructuring. Vista’s pitch to customers of its so-called Jet Card is a superior experience, without the inconvenience or expense of maintaining a luxury asset that spends most of its life on the ground. “We’re able to sell a guaranteed-availability model,” Flohr told the Financial Times at his Mayfair sales office, adding that the 365-days-a-year coverage “is better than aircraft ownership”. Vista’s fleet is scattered around the globe like an elite taxi service ready to pick up the next fare. With as little as 24 hours’ notice, customers can travel in one of the Dubai-based company’s 18 Bombardier Global 7500s, the world’s fastest business jet able to fly nonstop from Hong Kong to New York. Subscription sales have supported cash flows. At the end of 2022, customers had paid a total of $831mn up front for hours yet to be flown, but Vista had only $134mn cash left in the bank, according to company disclosures. The combination of debt, net losses and short-term liabilities prompted auditor EY to warn in its opinion on the 2022 accounts that “a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern”.
05-19-2023, 06:03 PM
#23
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05-19-2023, 06:48 PM
#24
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The article is behind a paywall. From what I saw on the video the CEO seemed to do a good job of rebuttal but then who knows. Kind of sounds like Wheels Up, both have taken on too much debt. Even Warren Buffet said WU's customers with pre-paid hours "are likely to be disappointed". Of course he owns NetJets so isn't an objective source.
https://www.ft.com/content/57e19c7c-...b-efc6c361873e
Read full article above
That article is behind a paywall.
To many, Thomas Flohr is a genius who took one look at the private jet industry and thought he could do better. A self-described “asset finance guy”, he started as a first-time jet owner trying to “sweat the asset” and VistaJet was born. Nineteen years later, with hundreds of aircraft, the 63-year-old is an aviation superstar taking on the market leader, Berkshire Hathaway’s NetJets, through audacious dealmaking and bold investment. The question mark hanging over the Swiss entrepreneur’s strategy is whether Vista can turn a profit and support the debt he used to build it. Net losses amounted to $436mn over the past four years, according to company disclosures to bond investors. Total debt more than doubled last year to $4.4bn as Vista’s fleet increased by half to 360 jets, helped by the acquisitions of Air Hamburg, Europe’s largest charter operator, and US-based Jet Edge.
It has also spent billions of dollars on top-of-the-line planes from Bombardier, deliveries that were essential to the Canadian manufacturer through years of government-backed restructuring. Vista’s pitch to customers of its so-called Jet Card is a superior experience, without the inconvenience or expense of maintaining a luxury asset that spends most of its life on the ground. “We’re able to sell a guaranteed-availability model,” Flohr told the Financial Times at his Mayfair sales office, adding that the 365-days-a-year coverage “is better than aircraft ownership”. Vista’s fleet is scattered around the globe like an elite taxi service ready to pick up the next fare. With as little as 24 hours’ notice, customers can travel in one of the Dubai-based company’s 18 Bombardier Global 7500s, the world’s fastest business jet able to fly nonstop from Hong Kong to New York. Subscription sales have supported cash flows. At the end of 2022, customers had paid a total of $831mn up front for hours yet to be flown, but Vista had only $134mn cash left in the bank, according to company disclosures. The combination of debt, net losses and short-term liabilities prompted auditor EY to warn in its opinion on the 2022 accounts that “a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern”.
Read full article above
That article is behind a paywall.
To many, Thomas Flohr is a genius who took one look at the private jet industry and thought he could do better. A self-described “asset finance guy”, he started as a first-time jet owner trying to “sweat the asset” and VistaJet was born. Nineteen years later, with hundreds of aircraft, the 63-year-old is an aviation superstar taking on the market leader, Berkshire Hathaway’s NetJets, through audacious dealmaking and bold investment. The question mark hanging over the Swiss entrepreneur’s strategy is whether Vista can turn a profit and support the debt he used to build it. Net losses amounted to $436mn over the past four years, according to company disclosures to bond investors. Total debt more than doubled last year to $4.4bn as Vista’s fleet increased by half to 360 jets, helped by the acquisitions of Air Hamburg, Europe’s largest charter operator, and US-based Jet Edge.
It has also spent billions of dollars on top-of-the-line planes from Bombardier, deliveries that were essential to the Canadian manufacturer through years of government-backed restructuring. Vista’s pitch to customers of its so-called Jet Card is a superior experience, without the inconvenience or expense of maintaining a luxury asset that spends most of its life on the ground. “We’re able to sell a guaranteed-availability model,” Flohr told the Financial Times at his Mayfair sales office, adding that the 365-days-a-year coverage “is better than aircraft ownership”. Vista’s fleet is scattered around the globe like an elite taxi service ready to pick up the next fare. With as little as 24 hours’ notice, customers can travel in one of the Dubai-based company’s 18 Bombardier Global 7500s, the world’s fastest business jet able to fly nonstop from Hong Kong to New York. Subscription sales have supported cash flows. At the end of 2022, customers had paid a total of $831mn up front for hours yet to be flown, but Vista had only $134mn cash left in the bank, according to company disclosures. The combination of debt, net losses and short-term liabilities prompted auditor EY to warn in its opinion on the 2022 accounts that “a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern”.
05-20-2023, 06:55 PM
#25
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