EBACE Show News - May 21, 2008 - (Page 61)

EBACE 2008 VistaJet’s Bing Chen has made the biggest purchase ever of Bombardier jets—60 with options—and is buying the Skyjet International charter service to boot. VistaJet Buys Bombardier Jets and Skyjet When VistaJet announced on Monday that it was expanding its business into the Asia Pacific region, it was an important step for the rapidly growing European company. VistaJet utterly eclipsed that news on Tuesday with two revelations: It has made the biggest firm order ever of trol of Skyjet International.” Asked ‘why Skyjet?’ Bing responded, “With the greatest respect to the other operators out there, there was no other company that had the characteristics VistaJet needed.” Things now are moving swiftly. VistaJet says 2008. By 2012 VistaJet and Skyjet together hope to be flying 100,000 hours per annum. “Skyjet International gives us some much-needed and immediate access to a new market and a network. We will keep the two brands—VistaJet and Skyjet—although our final plan for that is still emerging. We will maintain the existing operations in Farnborough—that’s important and we want to expand it. Salzburg will be more of a back office and the legal headquarters will be in Switzerland. “We are definitely committed to expanding both our operations and our fleet and to establish physical presences elsewhere in the world.” Specifically, the company is looking to expand in Russia, China, India and across Asia. Says VistaJet chairman and owner Thomas Flohr, “We are in a fast-consolidating industry, and it’s all about scale. In Asia, for example, there is no one operator with a properly established foothold. Now VistaJet will do that.” —Robert Hewson “VistaJet has already demonstrated steady and speedy growth to become the dominant force in Russia/CIS and Europe. Given the need to further expand our business model, our fleet and our geographical presence, we are acquiring and will take full control of Skyjet International.” —Bing Chen, CEO, VistaJet Bombardier business aircraft, and it is acquiring Bombardier’s globe-spanning Skyjet International charter service. The Skyjet International buyout is a gamechanging move for VistaJet that catapults it into the biggest of big leagues. VistaJet becomes the second largest private jet company outside North America. Moreover, its current fleet of about 30 aircraft (all owned) will be more than doubled by Tuesday’s purchase of 35 new aircraft. Including 25 additional options, the total deal is worth $1.2 billion. Through Skyjet International, VistaJet also gains access to a worldwide charter fleet of over 900 aircraft and an enormous new customer base. Skyjet International has operations in the UK, Dubai and Hong Kong. Sixty-four different operators make their aircraft available to Skyjet International—one of them used to be VistaJet! Show News spoke to VistaJet CEO Bing Chen about the almost unbelievable expansion his company is tackling head-on. “VistaJet has already demonstrated steady and speedy growth to become the dominant force in Russia/CIS and Europe. Given the need to further expand our business model, our fleet and our geographical presence, we are acquiring and will take full con- that an MoU on the Skyjet International acquisition already has been signed, and it will fully acquire Skyjet by June 30 “at the very latest,” stressed Bing. VistaJet is less forthcoming on how much Skyjet International cost to buy, or how the deal has been financed. Skyjet International never was a direct income generator for Bombardier. Instead it was a ‘shop window’ that exposed potential customers to Bombardier business aircraft and helped boost sales by channelling new buyers into the company. Skyjet International’s strategy was to deliver constant break-even growth for Bombardier, but clearly VistaJet will need to energize Skyjet to become a real earner. Says Chen, “We have a solid track record and market share already, so we will look to synergies with Skyjet to increase that. We already have 60 aircraft in terms of ‘hard assets,’ but Skyjet International now gives us a scalable platform with better operational efficiencies.” Chen noted that VistaJet’s anticipated revenue for 2008 will be $150 million and his company will fly about 15,000 hours. “On the basis of Skyjet’s current booked, firm commitments, it will double our business at the very minimum.” During 2007 Skyjet International flew about 12,000 charter hours, with 14,000 predicted for VistaJet’s New Jets VistaJet has signed firm orders for 35 new Bombardier jets worth $1.2 billion: 11 Challenger 605s, 11 Learjet 85s and 13 Learjet 60XRs. VistaJet becomes the largest customer for the new all-composite Learjet 85. The Swiss-headquartered company also has signed options for another 25 aircraft, which, if taken up, would triple the size of its current fleet. Deliveries are due to begin by the end of 2008 or early 2009. By 2012 VistaJet expects to have a fleet of nearly 100 aircraft, according to chairman and owner Thomas Flohr. The current VistaJet fleet includes the Challenger 850, 604/605 and 300, Learjet 40XR and 60XR, and Global Express XRS. In 2010 the company will take delivery of three Airbus ACJs. —RH www.aviationweek.com/shownews May 21, 2008 61 http://www.aviationweek.com/shownews

Table of Contents Feed for the Digital Edition of EBACE Show News - May 21, 2008

A318 Elite is on a Roll A Circle Around London P&WC Deliveries Triple Avanti Sees Sales Shift RUAG Eyes Needy Cabins Global Gets Even NICEr Embraer Beefs Up Support Honeywell ‘Virtual VFR’ Signature Europe Grows Gestair Seeks to Double Aero-Dienst Turns 50 Gama Doubles in Size All is Not Woe with Oil Ocean Sky is Aggressive

EBACE Show News - May 21, 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.