Flexjet yesterday scrapped plans to go public through a combination with special purpose acquisition company (SPAC) Horizon Acquisition Corp. II. In October, the fractional ownership provider announced the agreement to go public with Horizon with the expectation that the transaction would conclude by mid-2023 and result in proceeds to help fund fleet, program, and geographic expansion. The board of directors for both companies had approved the proposed deal.
Flexjet chairman Kenn Ricci, however, said the company believed the decision to terminate at this point was in the best interests of the aircraft share owner customers, employees, and stakeholders, and stressed the move would have “no impact on growth initiatives we have launched during the past several years.”
Todd Boehly, chairman and CEO of Eldridge and chairman, CEO, and CFO of Horizon, added that he anticipates continuing the long partnership the company has had with the Flexjet management team and respects the decision. “We are glad that Flexjet and Horizon were able to agree to the termination in a manner that is fair,” he said.
Flexjet, meanwhile, will remain “opportunistic” to the capital market and other available opportunities, the company said. “In 2022, we outperformed the financial targets provided at the start of the SPAC transaction and continue to deliver significant cash flows and compelling year-over-year growth,” said Ricci. “Our position of strength gives us the flexibility to access the public markets at the appropriate time.”
The company outlined a growth agenda for 2023 that includes taking delivery of an additional 37 aircraft that will bring its fleet to 270 aircraft by year-end, excluding helicopters. These additional aircraft will bring the number of new aircraft that Flexjet has taken since the first quarter of 2021 to 88.
Growth plans also include additional private jet terminals, reinforcement of the maintenance network and facilities, and a new headquarters complex in Cleveland, Ohio, with an operations and control center. Flexjet also cited further acquisitions, such as its recent Constant Aviation purchase, as well as possible expansion of its helicopter operations in Europe, the U.S. Northeast, South Florida, and London.
As a result of this activity, Flexjet hopes to add 388 flight crewmembers and 338 maintenance technicians this year, part of its ambition to increase employment by 1,400.
“Changing course midstream is not the easiest path, but I have always respected our team for having the discipline to do just that,” added Ricci. “We will remain nimble and alter course if necessary to ensure we are always doing what is truly in the best interest of our business.”