Directional Aviation Capital has acquired the fractional ownership provider Flexjet from Bombardier for about $195 million plus an agreement to purchase up to $5.6 billion in Bombardier business jets.
Flexjet joins the growing Directional Aviation Capital portfolio of business aviation businesses, including its close rival Flight Options, along with Sentient Jet Cards and Sentient Jet Charter.
Along with the purchase, Directional made firm orders for 115 Bombardier aircraft – 25 Learjet 75, 90 Learjet 85, 20 Challenger 350 and 10 Challenger 605 jets. The firm order is valued at $2.4 billion. In addition the order includes options for up to 265 more aircraft, pushing the total value to $5.6 billion.
Currently, the plan is for Flexjet to operate independently of Cleveland-based Flight Options and will position themselves in their respective markets, i.e. Flexjet remaining the premium brand, and Flight Options the value proposition. Directional Principal Kenn Ricci maintains, “the two operations serve different clientele with different operational needs.”
This acquisition positions Directional to compete with fractional ownership giant NetJets. Flexjet and Flight Options were the second and third largest providers, respectively, behind NetJets.
Over the last year there has been a steady return to growth in the fractional business and the capital injection will allow Flexjet to rapidly enhance its fleet.