Fractional giant says acquisition of London outfit will give it ‘greater strategic control’ over fleet management
Flexjet has acquired London business jet brokerage The Jet Business with the latter’s founder Steve Varsano becoming president of the fractional ownership giant, working alongside its chairman Kenn Ricci.
The Jet Business, set up by Varsano in 2011, is one of the industry’s most prominent business aircraft trading agencies. It claims to have the world’s first “street-level aviation showroom”, with an Airbus Corporate Jet cabin mock-up, used as a client meeting room, visible at times through the window of the Park Lane site.
Under the deal, terms of which are not disclosed, Flexjet will integrate The Jet Business into its existing FXSolutions brokerage entity under a “single global platform” although the former will continue to operate under its current brand.
Ricci’s Directional Aviation Capital bought Flexjet in 2013 after it had been set up 18 years earlier as an arm of Bombardier. Along with NetJets it is one of two players that dominate the fractional and jet card sector.
Flexjet, which has a fleet of more than 340 aircraft with air operator certificates in the UK, Ireland and Malta as well as the United States, says the transaction supports its “accelerating international expansion strategy”. The US company plans to open a private terminal at Farnborough airport this summer, which it describes as its “largest infrastructure project outside the US”.
Along with the Farnborough investment, this appears to be a bid by Flexjet to widen its influence in the business aviation market, particularly when it comes to asset transactions. While operating jets that are part-owned by thousands of customers remains its core business, it says “further integrating aircraft acquisition and disposition capabilities” will give it “greater strategic control over fleet quality, modernisation and lifecycle planning”.
The Jet Business, it adds, “will support the acquisition of aircraft entering the Flexjet fleet as well as the orderly transition of aircraft exiting services, providing market intelligence, transaction expertise and advisory capabilities that further strengthen Flexjet’s long-term fleet strategy”.
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