VistaJet has announced its strongest
ever year in 2017, with flight hours up markedly year-on-year.
It also made significant progress on
its core strategic priorities, increasing market share across the globe, and
recording double digit growth in flight hours in both the US and Asia.
Also, following investment from
funds affiliated with Rhône Capital, the company’s equity is valued well in
excess of $2.5bn, cementing VistaJet’s position as one of the top five European
unicorns by funding.
If current trends continue, 2018
is expected to be another momentous year for the company. The upper-end of the
sector historically tracks the global economy, and with Europe, the US and the
Middle East seeing growth once more, demand is only set to build in 2018. While
the more budget end of the sector is struggling, trading for premium brands such
as VistaJet is strong, as business leaders, corporations and UHNWIs are becoming
ever more selective in their booking choices.
Where previously customers were
most interested in speed and efficiency, in 2018 the key will be attention to
detail, additional services, and a personalized experience. Generations that
have grown up with having the world at their fingertips are increasingly
searching for travel options that match their lifestyles, preferences, and
attitudes. On top of that, the options created by exciting new long-range
aircraft models such as the Global 7000 will only add to the positive momentum
in the sector. Customers are also choosing to fly ever more globally, meaning
that average flight times are rising. As a result, demand for larger aircraft is
building; in the private aviation market, only VistaJet is able to meet this
need all over the world.
With the growth of the tech
sector on the West Coast of the US and a growing body of entrepreneurs in key
global financial hubs such as Dubai, the audience for private aviation will get
even younger in 2018. After many years of stability, the private aviation
industry is finally beginning to innovate to meet this burgeoning demand.
VistaJet is at the forefront of these steps; it’s On Demand solutions and Direct
app give entrepreneurs transparency over pricing, and its business model is
based on access over ownership, an approach users of Uber and Airbnb are
familiar with.
Other 2017 highlights include:
- VistaJet performed strongly in the Middle
East, with the number of new Program customers growing by 50% year on year.
The company recorded a particularly robust performance in the UAE, and the
growing markets of Saudi Arabia, Kuwait and Oman. The UAE accounted for the
majority of flights in the region (at 28%), and the number of flight hours
(37%).
- Heading into 2018, VistaJet is seeing
very positive trends in the Middle East, with both flight hours and flight
numbers increasing significantly. In the fourth quarter of last year, the
number of flights to the UAE grew by 44%, and to Oman by 300%.
- VistaJet continued to grow its market
share in the key markets of the US and Asia. While the market as a whole in
the US grew by low single digits, VistaJet saw its flight hours increase by
38% year-on-year, and the number of flights by 49%. One of the main drivers
of this growth was the sustained demand on the West Coast of the US,
particularly from the Tech sector.
- Strong growth in Asia, with flight hours
increasing by 16%. The fastest growing countries in the region were China
and India. With its growing economy and increasing number of global
entrepreneurs, India is set to be one of the most exciting markets for the
private aviation sector in the world over the next 5 years. In addition, the
economy in China is proving more resilient than many expected, meaning that
the private aviation sector is likely to flourish in the country throughout
2018.
- VistaJet cemented its position as one of
the leading operators in Europe in 2017. Europe accounted for 41% of the
total hours flown by the company in the period, with the UK making up 26%,
France 19% and Italy 11% of regional flights.
- VistaJet continued to lead the market in
2017 in terms of innovation and technology. Over the last twelve months, the
company launched VistaJet Direct, its new digital membership which offers
priority access to VistaJet’s one-way and empty leg flights at preferential
rates. The new offer is expected to be a key driver of the business’ growth
over the coming years.
Thomas Flohr,
VistaJet's Founder and Chairman, said: “Last year was undoubtedly a
transformational year for VistaJet, and a turning point in its history. With the
investment from Rhône Capital, we are now firmly established as one of Europe’s
leading and most exciting unicorns, and one of the only companies in the
business aviation market to be valued in excess of $1bn.
"We had our strongest ever year
in 2017. Along with seizing market share from our rivals in all of our core
markets, including the largest market in the world – the US, we reinforced our
position as the brand of choice for the world’s leading business leaders and
entrepreneurs. In the last twelve months, we have flown more Chief Executives
and Chairmen to more destinations than we ever have before.
"We head into 2018 in a fantastic
position. While some of our smaller competitors are finding trading challenging,
with our unicorn status and robust operational foundations we are ideally placed
to lead the market and seize any new opportunities that arise. We are committed
to becoming the No.1 player in every market in which we operate, and we are on
course to make great strides towards that goal over the next twelve months.”
Looking ahead to 2018, the
company remains focused on building its share in the largest markets in the
world, namely North America and Asia, while also taking advantage of its sector
leading position in the rapidly growing markets in the Middle East. VistaJet’s
subscription business model will continue to be a central pillar in its
business, and with more customers than ever before expected to choose to
increase their hours in 2018, the global trend away from full and fractional
ownership is set to continue. |