VistaJet Group Holding is not currently pursuing an initial public offering (IPO), according to founder and group chairman Thomas Flohr.
"Right now, it's not in the plan," he said during an interview on Dubai Eye 103.8 News radio.
He was responding to a recent Bloomberg report that claimed a possible IPO was tied to VistaJet Global potentially raising funds by selling convertible preference shares to a consortium led by Singapore-based RRJ Capital, one of the largest private equity firms in Asia, which is seeking to tap into demand for private jet chartering.
"We're always open to any right thing for the company, whether it's staying private or we're having incoming interest for our equity. I still own about 84% of the company [and I am] happy to stay with this structure. We will always look at alternatives for the company, but right now it's not in the plan."
Flohr also reacted to a Financial Times report on February 21 that VistaJet's cash reserves had fallen to USD62 million, the lowest level since 2020, following a decline in sales of flying hours. Citing financial statements, the FT reported that the number of flying hours purchased in advance dropped by 10.5% in the nine months leading to September 2024 compared to the previous year. The decline was attributed to reduced travel by VistaJet's super-rich clientele.
It reported that the company carried USD4.5 billion in debt from purchasing aircraft and rivals and was seeking to raise up to USD1 billion in new financing. This followed a debt increase in 2023 to USD3.9 billion, up USD133 million on the previous year.
However, Flohr dismissed the report as part of "a campaign against VistaJet" or having "some kind of agenda behind it, because it's too many times just picking the negatives." He added: "Let's focus on the real facts. And the facts are: the company continues to grow. People are spending money."
He said the business had experienced strong growth, with a 20% increase in new members in 2024 to about 1,300. "That's strong growth. We don't see any drop in the ultra-rich flying. If anything, there's a massive change from full aircraft ownership to coming to us on a subscription business model," he explained. VistaJet operates as a subscription service charging an upfront annual payment under a multi-year contract.
Flohr said that while there were remaining payments for acquisitions made in 2022 and 2023, excluding these payments the company had a positive cash flow. He noted that cash reserves had significantly improved by the end of 2024 from the level reported on September 30, 2024.
Flohr started VistaJet 21 years ago with 25 business jets. Today, the group operates about 360 aircraft worldwide with its own AOCs held by VistaJet (Germany) and VistaJet (Malta). It also partners with local operators in the United States under the Vista America brand.
