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Fractional M&A's

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Why does it have to? Each of the players have very different pricing structures and binding contracts that make it very hard to combine. NetJets probably has the money to do something, but as the highest cost provider, all those contracts at much lower costs would bleed the company out and would not be worth the price of taking out a competitor and NetJets just bought out Marquis and is trying to get Chinese operations started. Flex isn't going to buy another company out and fly non-Bombardier products. Citation Air isn't going to buy a company out and fly non Cessna products. Avantair isn't going to buy someone out and fly non Piaggio aircraft (they already gave up on flying VLJs before they got started). I guess the only buyouts I could see would be established players picking up charter operators to supplement their own lift like NJA does with EJM. That would be the only buyouts I can see that would make any sense for any of the fractionals (and maybe that wouldn't make financial sense for all I really know).
 
NJA and XOJet. NJA will be looking to expand on charters through the Marquis Jet program and the CL300 will fill the void left by the loss of the H4000. Just speculation from a furloughed guy…. :D
 
How about XO / TMC? From what I see over in the Charter forum, I have a feeling the price might be right these days. Also, their size and fleet makeup would integrate well and provide a small cabin option for those like NJAowner who don't always need the supper-mid cabin.
 
RJ Bum said:
NJA and XOJet. NJA will be looking to expand on charters through the Marquis Jet program and the CL300 will fill the void left by the loss of the H4000. Just speculation from a furloughed guy….
Click to expand...

You won't EVER get the 300, not buy acquisition, takeover, consumption, or chance; just give up thinking about it. ;)
 
I said it before - XOJ and Avantair. They are the only ones without fleet overlap. XOJ needs a smaller light jet for efficiency in short or single pax missions and the piaggo may provide that. Avantair needs real long range jets for it's fleet that can handle Fla to Colorado, Chicago, etc. No overlap here and not 10 different fleet types. The combined 3 fleets handle what most people need.

It makes more sense. All the other have too much duplication and would be too expensive to just add owners.
 
That does make sense... I'd still put my money on an XO/TMC merger(acquisition) before XOAvantiJET. My 2 cents...
 
Shared a van to the HGI with a Flexjet crew last night. They seemed convinced that Netjets is going to buy Flexjet so that they can get the Global Express. Said that there was a Netjets-sponsored static display up in Montreal recently that featured the Global.

Personally, I like what was said earlier about combining XOJet with Avantair. The types compliment each other perfectly.

Now, if we could just retrofit those Challengers with some props...
 
AftCG182 said:
Shared a van to the HGI with a Flexjet crew last night. They seemed convinced that Netjets is going to buy Flexjet so that they can get the Global Express. Said that there was a Netjets-sponsored static display up in Montreal recently that featured the Global.

Personally, I like what was said earlier about combining XOJet with Avantair. The types compliment each other perfectly.

Now, if we could just retrofit those Challengers with some props...
Click to expand...

Why would NJA need to 'buy' Flex to get Globals ?

"Hi I have 30 mil can I buy an express????"
 
NJAowner said:
I said it before - XOJ and Avantair. They are the only ones without fleet overlap. XOJ needs a smaller light jet for efficiency in short or single pax missions and the piaggo may provide that. Avantair needs real long range jets for it's fleet that can handle Fla to Colorado, Chicago, etc. No overlap here and not 10 different fleet types. The combined 3 fleets handle what most people need.

It makes more sense. All the other have too much duplication and would be too expensive to just add owners.
Click to expand...

And once again, you're wrong. Fleet types and their combination have little to do with synergies. You are ignoring balance sheets, debt levels, investor sentiment and other factors. Combining vastly different revenue sources is akin to mixing oil and water. What would the benefit be of combining companies in your estimation? One is a frax, the other a charter company. :)
 
Jeez..I find NJAowner to be on target most of the time. Your points may be valid and right on, but you didn't elaborate.

Fleet types and their combination have little to do with synergies... They would seem to have everything to do with synergies.

You are ignoring balance sheets, debt levels, investor sentiment and other factors....I think he was talking about operations, not financial issues. Doesn't matter anyway as all the fractional operators have less than stellar balance sheets and the investors would be overjoyed if they got 10 cents on a dollar of their investment. This won't happen as the selling entity would have to come up with cash to pay the buyer for taking the business off their hands. The tail on the buyback obligations are astronomical. TravelAir had over $600 million when they combined with FLOPS and they only had about a 100 a/c and most were of the smaller cabin variety.

Combining vastly different revenue sources is akin to mixing oil and water...Isn't his called diversifying risk?

One is a frax, the other a charter company....All fraxs are charter companies. Didn't NetJets buy a charter company because they wanted to expand their charter business as their share sales sucked and had to salvage what they could from their biggest customer?

What is the fascination with XOJet? There are a/c mgmt companies out there with bigger fleets that would seem to be be better partners as they don't have debt laden balance sheets, or buyback obligations.
 
I have to agree xo+avantair. Never considered it but makes sense. I just hope XO+avantair does not equal xair...

On second thought, it won't happen. Southwest would never get a new fleet type.
 
I don't think XO would ever merge with Avantair... Not the marketshare we are looking for.
 

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