CitationShares Press Release

[surveypilot]

Just wondering if any of the CitationShares guys had any thought as to how this will affect you, if at all.


CESSNA AIRCRAFT COMPANY TO ASSUME 75% OWNERSHIP OF CITATIONSHARES; TAG AVIATION RETAINS 25% STAKE

GREENWICH, CT, July 22, 2004 – CitationShares, the fastest growing fractional jet company, announced today that TAG Aviation USA, Inc. has sold one-half of its ownership interest in CitationShares Holding, L.L.C. to Cessna Aircraft Company, a subsidiary of Textron Inc. (NYSE: TXT). As a result, Cessna will assume 75% ownership of CitationShares, with TAG retaining a 25% stake. Previously, CitationShares was equally owned by Cessna and TAG.

The ownership change enabled CitationShares to obtain the necessary air carrier certificate required by the Federal Aviation Administration in preparation for the recently launched VectorTM JetCard program. Terms of the sale agreement were not disclosed.

“Cessna and TAG are great owners and terrific business partners, and we look forward to continuing our relationship with both of them under this new corporate structure,” said Steve O’Neill, CitationShares chief executive officer. “Cessna’s superb aircraft and product support, combined with TAG’s client-driven aviation services expertise, gives us an unparalleled presence in our industry.”

The Vector JetCard program enables individuals and companies to pre-pay for 25 hours of private flight time on CitationShares-operated aircraft. The program is innovative and simple – a two-page contract; payment by credit card, check or wire transfer; and one upfront, all-inclusive fee. No international fees, fuel surcharges or landing fees apply. In addition, pricing for the program is among the most competitive in the industry, starting at $84,995*.

 

[flexlrpilot357]

IMHO, what's interesting about this is that it makes Cessna the majority holder of another Cessna-flying frax. I wonder if this will change the Cessna/Netjets dynamic at all.

 

[AeroBoy]

Since TAG Aviation is based in Switzerland, Cessna had to do this to so CitationShares could get a Part 135 certificate to launch its Vector JetCard program.

re: NetJets. Like NetJets is going to buy only aircraft from Dassault and Gulfstream because those two business aircraft manufacturers are the only ones that don't hold a majority interest in a fractional program? The light and midsize market is where most of the share sales are happening, and that means Citations, Beechjets and Hawkers, unless you want a POS G100/Astra from Gulfstream. Raytheon's majority interest in Flight Options didn't hamper NetJets from placing a hefty order for Hawker 400XPs and Hawker 800XPs, and NetJets will be taking Sovereigns at the same time that CitationShares is accepting them. So to answer your question, it's unlikely to have any effect.

 

[Gulfstream 200]

TAG already had a 135 certificate.

How else can they run a 135 management company??

 

[BortaS]

That part of tag is set up as an American company, the part the owns citations shares is the overseas part. It's a bit like how DHL is set up.

 

[Heavy Set]

Flying the CJ1

Slightly off topic, but what percentage of newhires start on the CJ1? Is that based on need or experience (vs. the Bravo or Excel)? If you were to be based out of the West Coast on the CJ1, what is the likelihood that most of your flying would be regional in nature - or would you pretty much see the country regardless of where you live? Is the pay lower on the CJ1 vs. the Bravo and Excel?

Thanks - looks like a nice airplane...