Summary
- Volato and flyExclusive signed a deal for flyExclusive to manage all of Volato’s aircraft.
- Volato expects cost savings by shifting its fleet operations to flyExclusive.
- The agreement allows flyExclusive to offer Volato’s Vaunt software, potentially leading to a merger in the future.
On Wednesday, September 4, Volato officially revealed the extensive plans that it has in place after announcing an exclusive deal with flyExclusive. Late last week, flyExclusive revealed it had agreed to take over the business segment that manages Volato’s fleet operations, as first reported by Private Jet Card Comparisons. This means that flyExclusive will soon operate all of Volato’s aircraft, including the revenue and expenses associated with the business segment.
New strategic agreement for both fractional ownership companies
In the agreement, which was released on Saturday, August 31, flyExclusive revealed that it had officially signed a letter of intent to become the aircraft management services provider for Volato. This means that flyExclusive will manage the entirety of Volato’s fleet, which currently encompasses the HondaJet and a newly delivered Gulfstream G280. This deal will bring together two of the top twenty charter companies.
Photo: Bluebearwing | Shutterstock
In Volato’s announcement, the Chief Executive Officer (CEO) of Volato, Matt Liotta, spoke about the new deal. He stated,
“We are excited about the potential of this agreement, which provides significant benefits to both Volato and flyExclusive. By shifting fleet operations to flyExclusive, we reduce our operational costs while continuing to focus on delivering value through our aircraft sales and expanding our software solutions, such as the Vaunt empty leg program.”
Benefits to both companies
As early as this week,
Volato
will shift its Gulfstream G280 and several HondaJets to the
flyExclusive
fleet, which is currently made up of Cessna Citation business jets and Bombardier Challenger 350s. Overall, the flyExclusive fleet has grown to over 80 aircraft. This will expand the ability of flyExclusive’s existing customers and offer several new aircraft options for recurring Volato customers.
As flyExclusive will take on both the revenue and expenses of running Volato’s fleet, Volato believes this will bring the company substantial cost savings by reducing its overall cost base. It will also allow Volato to focus on high-growth areas, which have historically been in its aircraft sales department.
Photo: Bombardier
The aircraft management services agreement (AMS) also allows flyExclusive to offer the Vaunt software to its customer base.
Vaunt
, which was a proprietary software developed by Volato, offers empty-leg flights at a discounted price for Vaunt members. Earlier this year, Vaunt reached over $1 million in recurring revenue. In the second quarter of this year, the software continued to show growth, as it listed over 600 available flights throughout the quarter. With the addition of many flyExclusive empty-leg flights, Volato expects the Vaunt inventory to grow by up to 500%. The management services agreement will allow Volato to continue working on expanding its Vaunt software.
Beyond the aircraft management agreement, both Volato and flyExclusive have acknowledged the potential of a merger in the future. This is a step in the right direction, as the integration of the two companies has already begun. In Volato’s statement, the company mentioned that a potential merger could “further integrate the strengths of both companies and enhance their collective offerings in the private aviation sector.”