FlyExclusive inked a deal to take over the management services for Volato’s fleet, as well as much of the fractional ownership and charter provider’s business. Under the agreement, FlyExclusive will manage flight operations, sales, and expenses of Volato’s 13 fractional aircraft, eight leased aircraft, and four managed aircraft.
Volato has operated the largest HondaJet fleet in the U.S., and recently added the Gulfstream G280 to its fractional fleet, logging some 1,000 hours per month and more than 12,000 total flight hours in 2023.
The agreement comes as Volato recently cut five aircraft from its fleet in a move the company has characterized as part of “ongoing efforts to enhance operational efficiency and profitability,” as well as on the heels of the company’s quarterly financial report indicating a net loss of $34.3 million in the first six months of this year.
Over the next several months, FlyExclusive plans to transfer Volato aircraft to its operating certificate and in the interim will execute flights for Volato’s base of about 184 fractional owners and 265 block customers, along with servicing the retail and wholesale business.
Ultimately, the company anticipates that the fractional agreement and block-time customers will enter new agreements directly with FlyExclusive.
The agreement also provides FlyExclusive with access to Volato’s technology through a software license agreement. This includes providing Volato’s Vaunt software subscription customers with access to a large portion of FlyExclusive’s empty-leg flights.
"As a fully integrated operator, FlyExclusive is well-positioned to offer synergistic value to Volato’s clients and deliver enhanced value for our overall growing customer base,” said Jim Segrave, founder and CEO of Kinston, North Carolina-based FlyExclusive, which provides charter, fractional, and jet card services. “Over the years, we’ve made strategic investments to remove industry bottlenecks and grow and maintain a leading, consistent customer experience. We’re proud to welcome Volato’s customers and look forward to offering them access to our growing fleet of light, midsize, and super-midsize jets.”
FlyExclusive said the agreement will significantly increase its direct-to-customer facing operations and immediately be accretive to both its top and bottom lines. Excluding aircraft sales, Volato’s revenues are approximately $75 million, FlyExclusive noted.
“FlyExclusive is a proven operator with a robust platform and unwavering focus on the customer experience,” said Matt Liotta of Volato. “This agreement provides mutual benefit to both of our companies and, most importantly, our customers benefit by increased flight and service options with the reliable and high-quality service they have come to expect from best-in-class operators.”