Story ID: 103
Flexjet Postpones European Expansion, Citing Covid-19
By: Chad Trautvetter
Caption: Flexjet planned to announce a “significant expansion” in Europe two weeks ago at what would have been EBACE 2020, but Covid-19 pushed it to next spring.
Word Count: 315
Flexjet had planned to announce a “significant expansion” in Europe last month at what would have been EBACE 2020, but the Covid-19 pandemic has caused the company to postpone the announcement until next spring, company CEO Mike Silvestro said in Jefferies Equity Research webinar. The company’s European affiliate, which holds an air operator certificate via UK-based subsidiary Flairjet and holds a controlling interest in aircraft charter and management firm Sirio at Milan Linate Airport, currently has 15 aircraft—mostly Nextant 400XTis and a few Embraer Legacy 600s—in its fleet.

Kenn Ricci, Flexjet’s chairman and principal at parent company Directional Aviation, told AIN that Flexjet has deferred an unspecified number of new aircraft deliveries due to a delay in the European expansion plans. Silvestro said during his Jefferies presentation that Flexjet eventually will deploy the Embraer Praetor 600 in Europe, but Ricci would not confirm if that model accounts for the delivery deferrals.

Asked why Flexjet would shelve such plans when industry watchers believe that business aviation could see an influx of new customers post-Covid, Ricci cited uncertainty over future market dynamics given the unpredictable nature of the virus. “We were unsure of the impact of Covid in April when we pulled the plug on the Flexjet Europe expansion," he explained. "We didn’t have the foresight at the time to think there would be a significant positive [post-Covid] outcome for business aviation. So, in hindsight, we might have made a different decision, but since it involved new aircraft deliveries, we couldn’t take the risk.”

Flexjet Europe currently operates more as an ad-hoc aircraft charter firm, as opposed to the aircraft fractional share operation that parent company Flexjet operates in the U.S. However, the company does plan to eventually offer fractional ownership in Europe, Ricci and Flexjet Europe CEO Ray Jones previously told AIN.
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