Private aircraft operator Flexjet announced today that it will partner with special purpose acquisition company (SPAC) Horizon Acquisition Corporation II to become a publicly-traded company listed on the New York Stock Exchange. The two companies held a joint investor conference call this morning to discuss the transaction, noting that Flexjet's membership consists largely of aircraft owners who fly between 50 and 200 hours a year versus Wheels Up's base of primarily ad-hoc passengers who fly less than 25 hours a year.
In addition to the Flexjet brand that offers fractional jet ownership and leasing, the company also operates Sentient Jet, which focuses on jet cards; FXAir and PrivateFly, with their on-demand charter programs; and Sirio, which specializes in full aircraft ownership. Combined, the company’s fleet includes 254 aircraft ranging from the Embraer Phenom 300s to the Gulfstream G650; it also includes 19 helicopters.
The company has projected revenue of $2.3 billion for 2022, and proceeds from the transaction are expected to fund fleet, program, and geographic expansion along with improvements in infrastructure such as maintenance facilities and private terminals.
“Having capital and currency will position us to expand market share at an accelerated pace in an opportunistic environment,” said Flexjet chairman Kenneth Ricci. “We are making this decision at a time when we believe the marketplace is expanding at a more aggressive rate."
The boards of directors of both companies have approved the proposed deal, which is expected to be completed by mid-2023.