Global charter operator VistaJet (Stand 490) expects its fleet to grow by more than 20 percent to 96 aircraft by the end of 2022, while in the Middle East, it saw a first-half increase of 153 percent in company flight hours against 76 percent in North America and 41 percent in Europe, compared with the same period in 2020.
VistaJet chief commercial officer Ian Moore attributed an increased number of flights in and out of the region to Dubai’s perfect placement for connecting east to west. “We felt that being physically located in Dubai helped us put a stake in the ground as Vista Global," he explained. "Being in Europe or the U.S. sends a message that you’re just fixated on those markets. Being Dubai-based enables us to have a good, neutral view of how the world’s going to grow.”
He sees some of the world’s biggest growth markets surrounding Dubai, with Asia, India, and Africa all nearby.
VistaJet saw a doubling of new Middle East members in the first half of 2021, compared with the first half of 2020. “The majority of that is on the back of conversations that we’ve been having even pre-pandemic, where people waited until around the second half of 2020 to make a decision, and then decided to move this year due to a more positive outlook on where they see themselves, their business, and where they need to fly,” said Moore.
The company plans to take another 10 Challenger 350s and another nine Global 7500s by the end of next year. “We’re looking at a 20 to 25 percent increase in our fleet in the next 15 months," he said. "That’s [significant growth] in a fleet that’s already near enough to 80, with the VistaJet look and feel. With our total deliveries, we’ll have 96 aircraft by the end of next year under the VistaJet brand—and over 200 in the full Vista Global group fleet.”
As of October 8, VistaJet had a fleet of 76 aircraft and expected that figure to grow to 80 by the end of that month, encompassing 22 Challenger 305s, a new 604, ten 605s, and six 850s, along with six Global 5000s, 29 Global 6000s, and six 7500s. Parent Vista Global's fleet grew over the same period from 190 aircraft to 194.
Moore said VistaJet had seen its business jet charter model blossom during the coronavirus pandemic due in part to the collapse of commercial aviation and to the desire for safety and security of flying privately. "We think there’s a continued and accelerated spread of shared ownership, [through] utilizing global fleets and experience," he noted. "That’s what’s driven particularly VistaJet’s growth over this time.”
The VistaJet program concentrates on the full aircraft ownership user or even a full lease. Several acquisitions have now combined to boost the company’s effectiveness. Recently acquired Fort Lauderdale, Florida-based XO provides private charter and individual seats.
“On the XO side, that’s where the rest of the acquisitions are, with Red Wing Aviation, Talon Air, and Apollo Jet,” he said. “JetSmarter was merged into XO. It is really about creating a digital marketplace with a very efficient, fast, slick, fleet that we can use to underpin the digital market. Red Wing is really the light-jet provider of the XO arm, and Talon Air also helps us on the aircraft management side.”
AIN asked Moore to comment on changing tastes in the Middle East, given the region’s historical aversion to charter. “I would have to differentiate our business model from charter as a starting point,” he said. “What we’re seeing now is previous aircraft owners wanting to have slightly less visibility."
He identifies a market that, perhaps 10 years ago, showed more reluctance to participate in a shared ownership model. “Now, because we’ve got past that [obstacle] of providing a guaranteed service that’s consistent in its luxury and tailored service, we’ve broken that taboo. I think that’s something that’s reflected in the numbers,” he said.
A Middle East generation long associated with full aircraft ownership was reaching a slightly older age and often had up to five family members looking to fly. Rather than buy more aircraft, they looked for a product elevated over charter, which continued to be a very “choppy and inconsistent” market. At that top end, they were looking for absolute consistency.
“We feel very comfortable at the moment with the demographics in that client base, coming from not just a millennial-type category, but actually previous aircraft owners who would now like to have a fleet of aircraft available to them without having to pay for an entire fleet,” noted Moore. “Also, because of the further globalization of the world, many people have kids that are at school in the U.S. or a business that’s opened up in Africa. They have different places they need to be, and having a fleet that can mix and match the right aircraft to a mission has become more popular. We’ve seen a healthy mix of new and older or more mature customers that have had aircraft on ownership before, but see the merits of having a shared solution that feels like their own—and that’s what we provide.”
VistaJet is showing one of its Global 7500s on the static display line at the Dubai Airshow. Moore calls it an aircraft that connects continents “far more directly, efficiently, and luxuriously” than any other in the marketplace. The company expects to have added another eight of the jets by the end of the year.
“That’s helped drive our flights, but also memberships and subscriptions," he said. "We’re very positive about what the Middle East can bring, mainly because we’ve got new people joining the company and new people coming into the industry as a whole. Such a positive outlook drives future demand.”