XOJet plans McClellan expansion

[Whale Rider]

XOJet plans McClellan expansion

Big-name celebrities and high-powered chief executives are helping XOJET Inc. reach new heights.

The corporate jet service plans to buy more than 100 aircraft by 2012, and every one of those multimillion-dollar aircraft could find a home at the company's hangars at McClellan Business Park. That would mean a major expansion here for fast-growing XOJet, with its client roster that has included such luminaries as Sting, Brad Pitt and Angelina Jolie, and former British Prime Minister Tony Blair.

Founded in 2001 as PCMT Aviation and incorporated in 2006 under the XOJet name, the San Carlos-based company has a fleet of 21 aircraft in two hangars at McClellan, said Alison McCauley, director of marketing for XOJet.

XOJet plans to add at least 106 jets by 2012, all of which would be based at McClellan, bringing the fleet to 127 jets, she said. The company is adding a new Cessna Citation X jet about every three weeks and is scheduled to begin receiving Bombardier Challenger 300 jets this fall.


http://sacramento.bizjournals.com/sacramento/stories/2008/05/19/story3.html

 

[On Your Six]

XOJet plans McClellan expansion

Big-name celebrities and high-powered chief executives are helping XOJET Inc. reach new heights.

The corporate jet service plans to buy more than 100 aircraft by 2012, and every one of those multimillion-dollar aircraft could find a home at the company's hangars at McClellan Business Park. That would mean a major expansion here for fast-growing XOJet, with its client roster that has included such luminaries as Sting, Brad Pitt and Angelina Jolie, and former British Prime Minister Tony Blair.

Founded in 2001 as PCMT Aviation and incorporated in 2006 under the XOJet name, the San Carlos-based company has a fleet of 21 aircraft in two hangars at McClellan, said Alison McCauley, director of marketing for XOJet.

XOJet plans to add at least 106 jets by 2012, all of which would be based at McClellan, bringing the fleet to 127 jets, she said. The company is adding a new Cessna Citation X jet about every three weeks and is scheduled to begin receiving Bombardier Challenger 300 jets this fall.


http://sacramento.bizjournals.com/sacramento/stories/2008/05/19/story3.html

Does this mean incremental aircraft orders to the ones already in place? Beyond the current Citation X and Challenger 300 orders?

What about bigger airplanes like Gulfstreams, Globals and Falcon 7Xs? I thought those were under consideration at one point as well... That's a pretty impressive line up of investors.

 

[Flex-ible]

Sounds like a re-hash of previous stories to get them back in the news and make them sound important.

I haven't seen the business plan - but I am not real confident it'll work.

 

[t-bone]

Sounds like a re-hash of previous stories to get them back in the news and make them sound important.

I haven't seen the business plan - but I am not real confident it'll work.

How will we ever get by without your support/confidence???

 

[On Your Six]

Sounds like a re-hash of previous stories to get them back in the news and make them sound important.

I haven't seen the business plan - but I am not real confident it'll work.

Are you saying that the Texas Pacific Group doesn't understand their investments? That they are blindly investing $85 million in equity? Really?

Perhaps you are not privy to the details. This sounds like a cash flow and tax benefits (i.e., depreciation) type of investment. XOJet's investor list is pretty impressive - there's a lot of brain power behind the curtains...

 

[cherry20's]

Sounds like a re-hash of previous stories to get them back in the news and make them sound important.

I haven't seen the business plan - but I am not real confident it'll work.

I am glad you didn't talk all those investors out of blowing all their money Flex...

Do some research and make an educated post instead of mine is better than yours. We have plenty of that already at FI.com

 

[cherry20's]

Here is some more useful information:


XOJET Launches International Expansion and Secures Financing Agreements for up to US$2.46 Billion
Rapid Growth Attracts Investment to Meet Escalating Worldwide Demand for Business Aviation, Launch International Joint Venture in Abu Dhabi, U.A.E.

GENEVA, SWITZERLAND — May 19, 2008 — Today at the European Business Aviation Convention, business aviation leader XOJET announced financing agreements for up to $2.46 billion to fund its North American operations and global expansion strategy. This marks the largest publicly-announced business aircraft financing package in history. XOJET also announced the proposed launch of a separate joint venture with investment company Tasameem Real Estate Company, LLC (Tasameem) to be headquartered in the United Arab Emirates’ capital city of Abu Dhabi.
The equity financing round was advised by Morgan Stanley. Multiple investors participated in debt and equity financings including global investors Tasameem, veteran aviation investor TPG, Export Development Canada (EDC), White Oak Global Advisors, LLC and XOJET founder Paul Touw. The strength of these financings reflects the high degree of confidence that XOJET’s investors have in the company’s U.S. management, proven business performance and in the growing demand for business aviation services.
$964 million in immediate financing will be made available to XOJET, which has already secured more than $500 million in previous funding. The remaining $1.5 billion in additional financing will be made available upon launch of the planned joint venture with Tasameem, which is expected to occur later this year. XOJET currently has 127 aircraft and aircraft orders valued at more than $3.1 billion.
XOJET’s global expansion strategy seeks to capitalize on the escalating worldwide demand for business jet travel. The joint venture with Tasameem in Abu Dhabi will leverage XOJET’s innovative operating model, stringent safety standards, and comprehensive operating experience to bring the company’s unique value proposition to customers traveling to, from, and within the Gulf Cooperation Council countries and the greater Middle East region.
This comprehensive financing package will also enable XOJET to be the first large-scale business jet operator to fund the vast majority of its own fleet. Traditional models of business aviation have customarily required the customer to fund the aircraft, or a fraction of the aircraft. With this comprehensive financing package, XOJET expects to self-finance its aircraft, removing this burden from its customers and expanding the breadth of its product offerings.
“The dynamics of a constrained commercial aviation system combined with the rapid rise of business opportunities in a global economy are driving historic growth in business aviation,” said Paul Touw, CEO of XOJET. “In an increasingly diversified and worldwide marketplace, business jets are becoming one of the most important tools for corporate competitive advantage.”
With commercial airline service under strain, business jet travel is growing at an unprecedented rate. In the United States, the FAA March 2008 forecast predicted average flight growth of 12.2 percent annually through 2010. The overseas business jet market is growing even more rapidly, with aircraft manufacturers predicting that more than 50 percent of aircraft demand will come from outside of North America, according to the annual Honeywell Business Jet Forecast.
“XOJET’s business model is changing the industry as it continues to outperform our expectations,” said David Bonderman, founding partner of TPG. “We are excited to continue to fund the company’s growth as it has assembled a world-class management team that continues to execute aggressively and successfully.”
“This significant financing series has created one of the strongest balance sheets in the industry,” said Eilif Serck-Hanssen, XOJET’s CFO and president of international operations. “Given today’s credit markets, the magnitude and size of these agreements suggests there is always capital for great ideas and growth markets.”

 

[brokeflyer]

who's xojet and why are they posting in the fractional boards......there is a board here for charter companies.

 

[johnsonrod]

who's xojet and why are they posting in the fractional boards......there is a board here for charter companies.

I believe owners can buy a fraction (albeit a large fraction) of the airplane. So, technically...

 

[atpcliff]

Hi!

NJA's biggest growth now is the Marquis cards, so should they be moved out of the fractional board?

cliff
YIP