In a SEC filing on Tuesday morning, the AMS includes an option for Volato to merge into a wholly owned subsidiary of flyExclusive. This option expires one year from the date of the agreement and allows an option for flyExclusive to purchase Volato during that time.

This comes as Private Jet Card Comparisons reports widespread layoffs at Volato. A source familiar with the situation at Volato confirmed such layoffs and provided FLYING with a letter of termination they received from the company.

• READ MORE: Volato to Drop 5 Leased Jets, Furlough Pilots

“In light of market conditions this year, Volato has been actively seeking ways to improve its operating costs and increase efficiencies,” the letter stated. “As part of that, Volato has been undergoing talks with several private aviation companies and has recently signed a letter of intent (LOI) with flyExclusive. The LOI outlines an immediate move to combine certain operations through cooperative agreements. This strategic move is expected to strengthen our position in the market and provide new opportunities for growth. However, as we transition through this period, it has become necessary to adjust our workforce to better align with our current and future operational needs.”

The letter further stated that the step was part of Volato’s strategy to improve operational efficiency and reduce costs as the company anticipates the delivery of new aircraft and the successful completion of its merger with flyExclusive.

Terms of the AMS

Tuesday’s agreement will see flyExclusive manage flight operations, sales, and expenses of Volato’s fleet, which consists of 13 fully fractionalized aircraft, eight leased aircraft, and four managed aircraft. The goal under the AMS is to transfer aircraft to the flyExclusive certificate, which will occur over the coming months in coordination with the FAA.

“As a fully integrated operator, flyExclusive is well positioned to offer synergistic value to Volato’s clients and deliver enhanced value for our overall growing customer base,” said Jim Segrave, founder and CEO of flyExclusive, in a news release from the company. “Over the years, we’ve made strategic investments to remove industry bottlenecks and grow and maintain a leading, consistent customer experience. We’re proud to welcome Volato’s customers and look forward to offering them access to our growing fleet of light, midsize and super-midsize jets.”

In addition to managing Volato’s retail and wholesale business, flyExclusive will execute flights for Volato’s customer base of approximately 184 fractional customers and 265 block customers until they are moved over to FLYX agreements. 

The release states that this agreement will significantly increase the FLYX direct-to-customer facing business in the United States. FlyExclusive expects approximately $75 million in revenues from Volato—excluding aircraft sales—to transfer to FLYX. FlyExclusive states in the release that it is confident these flights can be executed with minimal additional overhead. 

The AMS will also provide flyExclusive with access to Volato’s technology through a software license agreement.

“FlyExclusive is a proven operator with a robust platform and unwavering focus on the customer experience,” said Volato CEO Matt Liotta in the release. “This agreement provides mutual benefit to both of our companies and, most importantly, our customers benefit by increased flight and service options with the reliable and high-quality service they have come to expect from best-in-class operators.”

Volato did not immediately respond to FLYING’s request for comment.

The post Volato Lays Off Employees During Transition appeared first on FLYING Magazine.

Plans for the transaction were first announced in October 2022. The merger was officially approved by EG Acquisition Corp.’s stockholders at a special meeting held last week. flyExclusive’s common stock began trading on the New York Stock Exchange on December 28.

• READ MORE: FlyExclusive, SmartSky Expands Wi-Fi Partnership Ahead of IPO

“Today marks another milestone in our company’s mission to elevate the private aviation experience,” said flyExclusive founder and CEO Jim Segrave. “We built flyExclusive around the value that minutes matter for our customers, and this principle will continue to guide the disciplined approach that has defined our success in the industry.”

About flyExclusive

Headquartered in North Carolina, flyExclusive offers on-demand charter, Jet Club, and fractional jet services. The company recently secured a $30 million investment from the State of North Carolina to build a new pilot training center and headquarters. The facility is expected to include 10,000 square feet of space for up to five full-motion flight simulators, 14,000 square feet in classrooms and training space, and a 22,000 square-foot air operations center.

FlyExclusive also announced last October that it had added the 100^th jet to its fleet, which is made up of Cessna Citation Encores, Citation Excel/XLSs, Citation Sovereigns, and Citation Xs. According to the company, the October delivery makes it the second-largest operator of Cessna Citations in the world. FlyExclusive’s most recent purchase agreement with Textron Aviation covered options for up to 30 Cessna Citation CJ3+ jets.

The post FlyExclusive Finalizes SPAC Merger appeared first on FLYING Magazine.

Scott Donnelly, Textron’s chairman and CEO, told investors on his earnings call that despite supply chain challenges still affecting Textron’s business, its manufacturing segments generated higher operating profits than last year.

Demand Still Strong

The Textron Aviation division contributed $1.2 billion of the revenue, which was $14 million less than the third quarter of 2021. The company said that due in part to lower Citation jet and pre-owned volume, but that favorable pricing and higher market value helped offset some of that loss. Textron Aviation delivered 39 jets in the quarter, down from 49 for the same period last year, and 33 commercial turboprops, down from 35 in last year’s third quarter. 

That generated a segment profit of $139 million for the quarter, which is $41 million more than last year. During the quarter, the company welcomed major orders that boosted sales. Last week, Fly Alliance agreed to purchase up to 20 Citations. FlyExclusive also said it would ramp up its fleet ahead of a SPAC-IPO through a purchase agreement for up to 14 more Cessna CJs, eight Citation XLS Gen2s, and six Citation Longitudes.

• READ MORE: FlyExclusive, SmartSky Expands Wi-Fi Partnership Ahead of IPO

The company said its Textron Aviation backlog at the end of the quarter was now worth $6.4 billion. 

New Distribution Center

Textron Aviation announced yesterday that it broke ground on its distribution center expansion project in Wichita, Kansas, which will contribute to keeping that division running smoothly. 

“This expansion will provide additional space for warehouse storage, customer support analysts, and office,” the company said in a statement.

Vertical Division and New Technologies

Meanwhile, at Bell, the vertical lift division, Donnelly shared that during the third quarter, regarding commercial orders, Bell delivered 49 helicopters, 16 more than last year’s third quarter. Bell’s segment profit and revenue, however, were notably down as a result of lower military orders. The company said it was specifically related to the H-1 program that had lower aircraft and spares volume as that program winds down. Either way, it generated an $85 million profit on $754 million of revenue, compared to the last third quarter, which was $105 million on $769 million of revenue. The company said Bell’s backlog at the end of the quarter was valued at $4.9 billion. 

As for the segment generating much new buzz, Textron eAviation, which is focused on bringing sustainable technologies to market, reported third-quarter revenue of $5 million and an $8 million segment loss. The company said those figures represented the operating results of its new Pipistrel unit, along with research and development costs for the new technologies it plans to launch. 

• READ MORE: Textron Completes $235 Million Purchase of Pipistrel

During the recent National Business Aviation Association-Business Aviation Convention & Exhibition in Orlando, the company unveiled its Nexus eVTOL model aircraft. 

“Our updated design reflects our ongoing investment in the underlying research and development supporting Textron’s long-term strategy to offer a family of sustainable aircraft for urban air mobility, general aviation, and cargo with special mission roles,” Donnelly said.

The post Supply Chain Woes Hurt Textron Q3 Deliveries appeared first on FLYING Magazine.

The news comes as the Part 135 operator also expanded its partnership with SmartSky Network, the fast-growing air-to-ground (ATG) inflight connectivity provider. During the  2022 National Business Aviation Association’s Business Aviation Convention and Exhibition (NBAA-BACE) held in Orlando last week, the companies teamed up to display SmartSky’s latest technology onboard a flyExclusive jet, following the installation of the ATG hardware on a series of Cessna Citation Xs at flyExclusive’s facilities in Kinston, North Carolina.

In a joint interview with FLYING, the CEOs of both companies discussed their partnership, the expectation of inflight connectivity, and, broadly, flyExclusive’s planned IPO.

New Trends in Inflight Connectivity

Jim Segrave, founder and CEO at flyExclusive said one reason it was important to work with SmartSky was that the company has “delivered dependable and secure connectivity that not only enhances the passenger experience, which offers the ability to live stream and conduct high-quality video calling but also provides real-time data transfer to and from the aircraft.”

SmartSky’s CEO Dave Helfgott said that is in part because the company has engaged in connectivity research, funding, and building a network for nearly a decade. Then the pandemic came along, private aircraft sales boomed, and SmartSky was a direct benefactor of customer demand for Wi-Fi on board.

Helfgott explained that as the work-from-anywhere trend advanced and more people got access to private aviation, the idea of Wi-Fi not being on board was less of a question. Segrave agreed—”The expectation of whether or not you have it is 100 percent. If you don’t have it—they don’t want to charter your plane.”

Then, on top of that, is reliability.

“It’s amazing how upset customers get if the [Wi-Fi onboard] doesn’t work,” Segrave explained. “They’re bent out of shape. So, reliability is a big factor for us.”

Is Gogo losing its Spot?

To be fair, FlyExclusive already had another Wi-Fi provider on board some of the other aircraft in its fleet through Gogo, the market leader in ATG solutions. Yet, when it started to add SmartSky’s solutions to its jets in March, it meant replacing some of Gogo’s antennae from some of the FlyExclusive aircraft.

Assuredly, it also marked another chapter in a contentious relationship between SmartSky and Gogo. In February, SmartSky sued Gogo, alleging that Gogo’s 5G product infringed on four SmartSky patents. Though that issue is sorted out, Segrave said the change was just to diversify the business. 

“Instead of having all your eggs in one basket, let’s diversify,” Segrave said. “What SmartSky is doing is exciting to me, directionally, and I think the industry needs what they’re providing, which is some other service.”

How Does Starlink Compare?

So how does SmartSky make its service reliable, and what does it think about new market entrants like Elon Musk’s Starlink satellite offering disrupting the market?

“There’s no one pure-play solution,” Helfgott said. “Satellites are good at broadcasting data. So, if you want to get a lot of bandwidth to an aircraft, and it’s a big aircraft—because it needs larger antennas—in that case, satellites are a good idea.” However, Helfgott points out that the typical customer, for the most part, doesn’t require all that data. “For most aircraft, like those in the super-midsize category, air to ground is the best option.”

That explains why the partnership with flyExclusive also makes sense because, as Segrave points out, the Citation fleet is one of the most prolific. Earlier this year, in February, Textron Aviation said it delivered its 8,000th Citation.

• READ MORE: Textron Aviation Delivers 8000th Cessna Citation

Added to that, Helfgott explains that delivering reliable Wi-Fi to a fast-moving business jet is more complex than it seems. Using the Citation as an example, which Helfgott calls a “fast airplane,” the CEO explains just how difficult it is to do what his company does. 

“You can’t just take traditional 4G or 5G technologies, or even satellite technologies, and hope they’re just going to work on an airplane going that fast,” Helfgott said. “You need to adjust for the extended coverage. Handovers are happening nearly every 10 seconds because you’re going so fast. So, just thinking you can throw up a network and it’s going to work in aviation is a terrible idea.”  

Road to IPO

As for going public via a SPAC, Segrave says he’s not worried about the trend where SPAC companies have been struggling. Instead, he views it as a growth opportunity because, unlike others who’ve used that financing mechanism, flyExclusive’s operation isn’t “speculative.”

In other words, Segrave says he’s strived to build a responsible business since launching in North Carolina less than ten years ago in 2015. Aside from investing in customer experiences, he said the company has tried to become vertically integrated, for instance, by doing its required maintenance in-house. They’ve also done that with pilot training. 

• READ MORE: The Aviation Business Trend of 2021? SPAC Mania

It will be more challenging than it looks, though, because there is plenty of competition. The week before, Flexjet also announced its own SPAC-IPO, joining Wheels Up (NYSE: UP) already in that space. Then, there are the privately owned but well-funded Berkshire Hathaway’s NetJets, Inc. and Vista Global’s VistaJet and XO.

Even with his best efforts, Segrave admits, “there’s a lot of pressure.” He says that’s because FlyExclusive employs more than 800 workers, which the CEO says means the decisions the company makes have the potential to affect thousands of people—but he’s optimistic. 

“From our standpoint, the way we’ve grown this business is by investing in the customer experience. If we can pull it off in this market, it might put us in a really good place,” Segrave said.

The post FlyExclusive, SmartSky Expands Wi-Fi Partnership Ahead of IPO appeared first on FLYING Magazine.

Four of the aircraft included in the agreement are firm orders, with options to buy another 16 aircraft. 

“Fly Alliance set out with the goal of improving the private charter experience, so it only makes sense to bring the Citation XLS Gen2 into their fleet,” O’Bannion said. “The latest version of our popular midsize jet features comfort and productivity upgrades while retaining the model’s winning combination of performance and efficiencies.” 

Presently, Fly Alliance’s managed and charter aircraft fleet, which includes six Hawker 800XP aircraft, is based in Florida in Orlando, Stuart, Palm Beach and Miami, as well as in Providence, Rhode Island. When they take on the XLS Gen2, it will be the company’s first Citation.

Cessna Citation XLS Gen2

The Cessna Citation XLS Gen2 is Textron’s latest Citation 560XL midsize jet update. Over the past 25 years, Textron has delivered more than 1,500 XLs to customers. According to Textron, the Gen2 can fly at speeds up to 441 knots with a range as far as 2,100 nm. It has a takeoff field length of 3,600 feet and can climb to FL450 in just 30 minutes. 

Textron revealed the Gen2 at the 2021 National Business Aviation Association – Business Aviation Convention & Exhibition in Las Vegas. Textron said that the Gen2 achieved FAA-type certification in May and began deliveries.  

“The Fly Alliance acquisition of up to 20 brand new aircraft from Textron Aviation expands our product offering to our members and customers,” Kevin Wargo, CEO of Alliance Aviation Group, said. Wargo also said the company intends to build its fleet to 100 aircraft in the years ahead. 

The post Fly Alliance To Buy Up To 20 Citations From Textron appeared first on FLYING Magazine.

Based in Kinston, North Carolina, flyExclusive is the third-largest Part 135 charter operator in the United States. The company operates a fleet of 85 light to heavy jets, including Citation X, Citation Sovereign, Citation Excel/ XLS, Citation CJ3, and Citation Encore aircraft models.

“We continue to innovate in the marketplace with a fully owned and operated fleet and a vertically integrated business model that redefines what it means to fly private,” flyExclusive founder Jim Segrave said in a statement.

“FlyExclusive customers now have it all. They now have the choice of our Jet Club, Fractional, and Partnership programs. With flyExclusive Fractional, private flyers can purchase a fractional share in a brand-new Cessna Citation CJ3+ and unlock a world of possibilities for consistent, world-class private jet experiences on our versatile fleet.”

Adding to the Fleet

Textron Aviation’s president and CEO Ron Draper welcomed the deal and celebrated his company’s ongoing partnership with flyExclusive in an announcement Wednesday. 

“We appreciate customers like flyExclusive, who see the value in operating a broad range of jets from the Citation family,” Draper said in a statement.

“The operating economics of Citations, combined with the global network of service and support available through Textron Aviation, ensures continued productivity and enjoyment throughout the ownership experience.”

Segrave said the deal will help his company continue to grow and take advantage of the market’s strong demand for private air transportation. 

“We are proud to continue our relationship with Textron Aviation as we bring the CJ3+ into our esteemed fleet,” Segrave said. “The addition of these new CJ3+ aircraft will allow us to expand our capabilities to support our continuing growth as one of the industry’s largest private jet charter operators,” he said.

FlyExclusive is the second-largest owner-operator of Cessna Citation aircraft in the world. 

Delivery of the new jets is expected to begin in 2023 with five aircraft, and flyExclusive will have an option to purchase additional aircraft for deliveries through 2025. 

In the light jet segment, the single-pilot CJ3+ offers seating for up to nine passengers and can fly a range of 2,040 nm.

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