Charter and fractional provider FlyExclusive will bolster its floating aircraft fleet of more than 90 jets with the purchase of 14 midsize Citation XLS Gen2 and super-midsize Longitude business jets from Textron Aviation, the Kinston, North Carolina-based company announced Tuesday at NBAA-BACE 2022. This comes on the heels of plans disclosed Monday by FlyExclusive (Booth 1695, Static AD_405) to go public through a business combination with EG Acquisition, a special purpose acquisition company (SPAC) sponsored by EnTrust Global and GMF Capital.
Deliveries of the eight XLS Gen2s are expected in 2024, followed by deliveries of two of six Longitudes beginning in 2025. FlyExclusive did not detail the terms of the agreement but at list prices the orders could carry a value of upwards of $280 million.
“This agreement reinforces FlyExclusive's rapid growth and further bolsters the company's offerings in the fractional space,” said CEO and founder Jim Segrave. Earlier this year, FlyExclusive announced an agreement to purchase up to 30 Citation CJ3+ light twinjets.
Founded more than seven years ago, FlyExclusive has increased its membership by triple digits and has a retention rate of 94 percent among existing members. For 2022, it estimates a profit of $32 million on revenues of more than $360 million. And in 2023 it expects to more than double its profit to $63.7 million on estimated revenues of $522 million. Last year, the company flew more than 46,000 hours, a more than 46 percent increase from 2020.
“We are excited to enter the public markets through our business combination,” said Segrave, who will remain CEO after the transaction. “This capital, combined with our leadership team’s significant aviation industry experience, will allow FlyExclusive to rapidly grow our workforce [of 800], significantly expand our fleet, and further invest in our customer experience while maintaining our core values and family-first culture.”
Under the terms of the business combination agreement, FlyExclusive’s pre-transaction equity value is $600 million, and the deal is expected to provide up to $300 million in proceeds. That includes $85 million of committed convertible notes and $225 million of SPAC cash in trust, assuming no redemptions.
“FlyExclusive has become one of the fastest-growing providers of premium private jet charter experiences thanks to their world-class leadership team, business model designed to maximize utilization and flight unit economics, and the consistent high-quality service they provide to customers,” said Gregg Hymowitz, CEO and director of EG Acquisition and chairman and CEO of EnTrust Global.