The founder and chairman of VistaJet Group Holding Ltd., parent entity of VistaJet (Malta) (VJT, Malta International), has told other investors that his 86% stake can be used to increase the company's liquidity.
In a letter to investors cited by Bloomberg News, Swiss businessman Thomas Flohr said his stake provides “an enormous equity cushion in the business which can be accessed to bolster liquidity.”
VisaJet has reported adjusted 2023 EBITA earnings of USD801 million, down on the 2022 figure of USD841 million. As of December 31, 2023, its total debt stood at USD3.9 billion, up USD133 million on the previous year, while available liquidity was USD270 million.
The 266-strong fleet of VistaJet and subsidiaries such as VistaJet (Germany) (H5, Hamburg Helmut Schmidt) and XOJET Aviation (XOJ, Fort Lauderdale Executive) includes aircraft manufactured by Bombardier Aerospace, Embraer, Cessna Aircraft Company, Dassault Aviation, and Gulfstream Aerospace, 93 of which have recently been or are undergoing refurbishment.
VistaJet operates as a subscription service similar to NetJets Aviation (EJA, Columbus John Glenn, OH). Charging an upfront annual payment under a multi-year contract, Flohr says his company's business model sees VistaJet carrying the entire aircraft asset risk. "While our peers typically offload the asset risk to their clients, we looked at what commercial airlines do, and our balance sheet is no different from theirs."
