Private jet company Flexjet is listing on the stock exchange, aiming to expand its fleet, network of private terminals and its geographic footprint amid growth in the market for business jet travel.
Flexjet, which offers a subscription-based service and a fleet of over 235 aircraft, will merge with a special acquisition company called Horizon Acquisition Corporation II, and list on the New York Stock Exchange under the ticker symbol “FXJ”.
Private jet flying boomed as a result of the COVID-19 pandemic, with people using it as a way to get quickly and safely to places amidst a lack of commercial flying. In 2022, the long lines seen at airports have also tempted some travelers to try out private flying to avoid flight delays and cancellations.
Flexjet, which competes with companies such as NetJets, Vista and Wheels Up, estimates its revenue will jump to $2.3 billion in 2022, from $1.7 billion in 2021. Profits are also expected to grow this year, to $288 million, from $184 million in 2021.
“Having capital and currency will position us to expand market share at an accelerated pace in an opportunistic environment,” said Kenneth Ricci, Chairman of Flexjet. “We will parlay our existing profitability and use that as a launch pad to accelerate our growth into the next chapter. We are making this decision at a time when we believe the marketplace is expanding at a more aggressive rate.”
Flexjet’s fleet in the U.S. includes the Embraer Phenom 300 and Praetor 500, the Bombardier Challenger 350, and the Gulfstream G450 and G650. Flexjet’s European fleet includes the Embraer Praetor 600 and the Gulfstream G650.
The transaction implies a pro forma enterprise value for Flexjet of approximately $3.1 billion and is anticipated to close in the second quarter of 2023. The company plans to use the proceeds from the deal to “fund fleet, program, and geographic expansion, as well as significant infrastructure expansion, including maintenance support facilities and private terminals.”