XOJet to get $2.5 bln to expand its fleet

[Whale Rider]

XOJet to get $2.5 bln to expand its fleet


Check this out guys...............:beer:

May 19 (Reuters) - XOJet Inc, a private aviation company backed by buyout firm TPG Inc, has arranged $2.5 billion of financing to expand its jet fleet, a spokeswoman said on Monday.

The company also plans to expand internationally in partnership with Tasameem, an Abu Dhabi Investment Authority real estate arm, spokeswoman Alison McCauley said.

About $85 million of the funding will be an equity investment from TPG, Tasameem and XOJet management, with the balance from loans, McCauley said.

The funding may help San Carlos, California-based XOJet compete more effectively with NetJets Inc, a private aviation company owned by Warren Buffett's Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research) (BRKb.N: Quote, Profile, Research). XOJet said it was started in 2006.

The Wall Street Journal earlier reported the funding package.

XOJet said it expects to receive about $900 million in financing immediately. This includes about $500 million from Abu Dhabi, and about $400 million from Export Development Canada to fund the purchase of Challenger jets made by Bombardier Inc (BBDa.TO: Quote, Profile, Research) (BBDb.TO: Quote, Profile, Research).

The company expects Middle East investors to provide an additional $1.5 billion in loans later this year after it establishes an Abu Dhabi base to launch international operations. (Reporting by Jonathan Stempel in Bangalore; Editing by Tomasz Janowski) (([email protected]; +1 646 223 6317; Reuters Messaging: [email protected]))


http://www.reuters.com/article/marketsNews/idUSSP31298320080519

 

[On Your Six]

Are we assuming there will be some American pilots flying out of Abu Dhabi or will pilots be primarily sourced locally?

Do we know what aircraft types will be ordered specifically for this region? I realize not many details are available at this time.

 

[lookin4better]

Is there a pay scale available for XO?

 

[Sparse]

This sounds all great but there are specific hurdles a business must jump at specific times in prder to keep the money flowing. Miss one hurdle and the funding is pulled an assets captured. Look what happened to EOS.

 

[On Your Six]

The fact that TPG is involved is a huge confidence booster for XOJet. The model must be doing well in the US for them to consider international expansion.

Looks like they are going to where the money is - the Middle East! Again, does anyone know about incremental aircraft orders beyond the lastest Citation X and Challenger 300 orders?

 

[t-bone]

With regards to additional aircraft, my understanding is that we're looking into aircraft that can fly Abu Dhabi/Dubai-London non stop. Neither the 10 or the 300 can do that.

 

[On Your Six]

With regards to additional aircraft, my understanding is that we're looking into aircraft that can fly Abu Dhabi/Dubai-London non stop. Neither the 10 or the 300 can do that.

What is the proposed time frame for start up in the ME?

 

[Correcting]

and about $400 million from Export Development Canada to fund the purchase of Challenger jets made by Bombardier Inc

Perhaps they will be buying some Globals. Those can make the Middle East from London.

 

[cherry20's]

Perhaps they will be buying some Globals. Those can make the Middle East from London.

I have heard Global's and 605's kicked around? Don't know how true it is though. I sure am getting more and more excited about a chance to work there!

 

[Flex-ible]

I sure am getting more and more excited about a chance to work there!

I would be getting more and more nervous. That's over $2.4 billion in debt to be serviced. At 7%, that would be about a half million dollars A DAY. It would have been good to see more of these funds coming as investments rather than loans.