Vista becomes the world's largest private jet charter company.

Opening Bell

Thomas Flohr

here to talk about the major milestone and the growth of private jet aviation overall is thomas floor thomas's vista jet Chairman and founder and it is great to have you on the show today, congratulations on all the success. So tell us more about the acquisition, what does it mean for the company? Especially at this moment for you thomas. Good morning, how are you? Well, it is a definitely a major milestone for the company. Um, we needed more aircraft. Jet edge is a great platform. They have the same principles as we have floating fleet means no home base for the aircraft and each aircraft looks exactly identical and it takes us very little to make them look like mr airplanes and it adds an enormous amount of fleet to our network and in times of great demand, um, we're very much oversubscribed as a company. We have so much demand for our Industry leading subscription and asset light product and that acquisition really helps us to continue to fulfill the demand that we have, not only in the United States but globally. So what has that demand looked like? Especially over the course of the last two years, right, nothing's been untouched by this pandemic and we know that there's been an increase in demand for people that say, okay, well I still want to get around the world and in a private jet, I just want to do so with maybe a little bit more privacy. Talk to us about what that demand has looked like and how has that forced you to sort of shift gears if you will the last couple of years as demand has increased. Sure look, by Q3 2020 we already reached freedom pre pandemic levels of traffic and then in 2021 we really had an outstanding all time record year. We doubled the numbers of new subscription hours sold, annual subscription our souls. Um and that trend continues exactly into the first quarter of 2022. So a very, very significant growth. The company has more than doubled. Um, and uh that required us to make acquisitions as you know, we also acquired Hamburg recently in february for europe and the Middle East and that unprecedented demand we have and what we see really is of course there is a covid effect and create a demand as the commercial infrastructure is still not back to where it was, but the asset light principle that we have, it's just a secular move. It is a, it is a long term trend just like in many other industries that we offer versus the fractional industry of food aircraft ownership. So corporations just don't want to go to the board and ask for a, for an approval of of of a Capex, they much prefer opec's and that's exactly what we offer as a product. So thomas, I'm gonna be honest with you hear, my friend, I have never flown in a private jet myself. I don't know that I've ever seen A private jet and I think that's probably true for most people who say, I know these things exist. I know there are very, there are wealthy individuals like to do. Can you, can you talk to me about the specs, what are we actually talking? How sweet are these 7500 airplanes? Because I have seen some things online that made me say, Wow, I want one day in my life. I would love that opportunity. What are we actually talking about? These are gorgeous vehicles. Sure, but look, I mean the way corporations are seeing private jets is really that there are time machines. They're the most efficient business tool. Corporation can have the access to private jets because it gets them from a to b dizzy in the most efficient and fastest way point to point is the, is the theme here without wasting any time. And then ideally maybe flying back in the evening, back to the corporate headquarter. Uh 7500 is the industry leading product. It has a range of 17 hours nonstop carrying executive, basically nonstop to any point in the world. And bombardier has done a fantastic job delivering this aircraft. And as you know, the 100th airplane was delivered, we took number 10 giving us a 10% market share of that. Global 70 500 And yeah, as we said, there are time machines. They're super efficient and that's really what they stand for for cooperation thomas. What's your favorite gadget or Gizmo or feature inside one of these jets, like when you're on board, what do you most look forward to? I love the fact that we're connected at the highest speed Internet. We can do zoom calls on board. We can basically just continue to work when you arrive at the airport, usually within five or 10 minutes you're airborne and you just continue to work, you arrive at the other end, you have the chance to to sleep. Um in the 7500 there's a permanent bedroom in the back giving you the chance to arrive um super relaxed and and uh and uh ready for the next meeting and at the other end of the destination. And and that's really the life of the executive these days in a, in a, in a post pandemic world, we all work 24 73 65. Um everybody is reachable at any point in time. And and those are office suites in the sky. Um, and and that's really what what we, as businessmen like the most, you own 10% of the 7500. I know you have ambitions to add more before I let you go. We are, I mean the entire globe is dealing with with jet price increased, gas price increase tied large in part to the Russia Ukraine crisis. How are you expecting that geopolitical conflict thomas to impact your line of work, are you expecting to quite honestly passed down a lot of these costs to your consumers? Well, I mean, one thing if you fly globally, the Russian airspace is closed. So, so flights now from europe to the to them to them to either the Middle East or to southeast Asia by three or four hours longer, which is obviously inconvenient. Um But yes, the the fuel prices have passed through um but it's a relatively small figure. Um These are very, very efficient aircraft by far not as big as going in airports obviously. Um And yes, the consumer is is being charged a surcharge of rising fuel prices, but it is so small relative to the entire trip costs so that it's not prohibitive for a corporation to still use these aircraft. All right, thomas flores, vista jet ceo, join us there from the beautiful country of Switzerland thomas. Great to have you congratulations. Thanks for taking the time for us here this morning.