VistaJet - boosts its Managment?
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VistaJet - boosts its Managment?
Who else is sitting in the advisory board?
FT.com / UK - VistaJet appoints rival to oversee growth
Switzerland's VistaJet has appointed a senior figure from rival operator, NetJets Europe, as it moves to expand its presence in the global private jet market.
Robert Hersov, former vice-chairman of NetJets Europe, is to chair a newly formed advisory board at VistaJet, which has become one of the world's fastest growing private aviation companies since it was founded by Swiss entrepreneur Thomas Flohr nearly eight years ago.
VistaJet also announced a tie-up with Flexjet, the private aviation arm of Bombardier, the Canadian aircraft manufacturer. The move, which Mr Flohr described as similar to the code-sharing deals made between commercial airlines, does not involve any equity agreements. However, it gives VistaJet a foothold in the US market.
"With this agreement we offer a truly global service," said Mr Flohr, whose company has until now focused on markets in Europe, the Middle East and Asia.
In spite of its rapid growth, VistaJet's fleet of 26 jets is dwarfed by the 160-plus aircraft in NetJets Europe, which is part of billionaire financier Warren Buffett's Berkshire Hathaway group.
Mr Flohr said he planned to have "between 50 and 60 aircraft" by 2013.
NetJets pioneered the fractional ownership model for private jets, while VistaJet offers on-demand contracts for occasional fliers and blocks of time for customers requiring more regular use of a private jet.
Mr Hersov, whose family established one of the biggest mining and industrial empires in South Africa, founded his own executive jet company, Marquis Jet Europe, before selling it to NetJets Europe in 2004, where he was vicechairman until 2008 and a member of the group's advisory board until last month.
Formerly an investment banker and media executive, Mr Hersov said he aimed to put VistaJet "in front of the right kinds of people" in his new role.
The private jet business has suffered a dramatic reversal of fortunes during the past three years as it veered from a record boom to one of the worst crises in its history in the wake of the global financial crisis.
Deliveries of private jets soared to more than 1,000 in a single year for the first time in 2007 and rose again in 2008 on the back of record backlogs built up by swelling orders. But deliveries fell this year after the global financial crisis and recession, and are expected to drop below 700 in 2010.
"It's been a very tough two years," said Mr Flohr, but he predicted it would grow again once a strong economic recovery resumed.
The privately owned VistaJet, which does not release its financial results publicly, reportedly had a turnover of close to $200m in 2008.
Mr Flohr said he could not confirm that figure but said revenues in 2009 were 20 per cent higher than the previous year.
FT.com / UK - VistaJet appoints rival to oversee growth
Switzerland's VistaJet has appointed a senior figure from rival operator, NetJets Europe, as it moves to expand its presence in the global private jet market.
Robert Hersov, former vice-chairman of NetJets Europe, is to chair a newly formed advisory board at VistaJet, which has become one of the world's fastest growing private aviation companies since it was founded by Swiss entrepreneur Thomas Flohr nearly eight years ago.
VistaJet also announced a tie-up with Flexjet, the private aviation arm of Bombardier, the Canadian aircraft manufacturer. The move, which Mr Flohr described as similar to the code-sharing deals made between commercial airlines, does not involve any equity agreements. However, it gives VistaJet a foothold in the US market.
"With this agreement we offer a truly global service," said Mr Flohr, whose company has until now focused on markets in Europe, the Middle East and Asia.
In spite of its rapid growth, VistaJet's fleet of 26 jets is dwarfed by the 160-plus aircraft in NetJets Europe, which is part of billionaire financier Warren Buffett's Berkshire Hathaway group.
Mr Flohr said he planned to have "between 50 and 60 aircraft" by 2013.
NetJets pioneered the fractional ownership model for private jets, while VistaJet offers on-demand contracts for occasional fliers and blocks of time for customers requiring more regular use of a private jet.
Mr Hersov, whose family established one of the biggest mining and industrial empires in South Africa, founded his own executive jet company, Marquis Jet Europe, before selling it to NetJets Europe in 2004, where he was vicechairman until 2008 and a member of the group's advisory board until last month.
Formerly an investment banker and media executive, Mr Hersov said he aimed to put VistaJet "in front of the right kinds of people" in his new role.
The private jet business has suffered a dramatic reversal of fortunes during the past three years as it veered from a record boom to one of the worst crises in its history in the wake of the global financial crisis.
Deliveries of private jets soared to more than 1,000 in a single year for the first time in 2007 and rose again in 2008 on the back of record backlogs built up by swelling orders. But deliveries fell this year after the global financial crisis and recession, and are expected to drop below 700 in 2010.
"It's been a very tough two years," said Mr Flohr, but he predicted it would grow again once a strong economic recovery resumed.
The privately owned VistaJet, which does not release its financial results publicly, reportedly had a turnover of close to $200m in 2008.
Mr Flohr said he could not confirm that figure but said revenues in 2009 were 20 per cent higher than the previous year.
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Mr Flohr said he planned to have "between 50 and 60 aircraft" by 2013
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The only thing missing from this brilliant press release was how he wants to "revolutionize private jet travel" , "take it to the next level" and surround himself with "team players who aren't afraid to think ouside of the box."
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another big hitter leaves Netjets....
I wonder what motivation lay behind the move for such a long term NJE figurehead to jump ship?
A VJ carrot, or a rapidly approaching NJE sharp stick.... ?
A VJ carrot, or a rapidly approaching NJE sharp stick.... ?
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A very positive move for Vistajet. Robert Hersov will bring a wealth of knowledge and experience to the table helping Vistajet to continually build during these testing times. An addition of this magnitude highlights their ambition and certainly indicates they command enough 'pull' to attract such a prominent figure from their rivals. Interesting times to follow at Vistajet one would think.
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Charter JAROPS 1 - As UK FT.com articles are not open to everyone could you please either provide an alternative link or post the content of the article.
EDIT - Advised by Flat Spin that JAROPS 1's post contained the text of the article - thanks Flat Spin.
EDIT - Advised by Flat Spin that JAROPS 1's post contained the text of the article - thanks Flat Spin.
Last edited by RAFAT; 4th Jan 2010 at 20:35.
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I wonder what motivation lay behind the move for such a long term NJE figurehead to jump ship?
They only addition they now need is Jonathon B
Also a great figure head or should I say big head 
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RYR
RH is single handedly responsible for a significant amount of the NJ sales following the purchase of Marquis Jet, which in itself brought 268 customers to NJ more than doubling the customer base (and hitting the target set at 500 customers, just in time)
If he was sidelined in 2004 why did it take almost 6 years (their most successful-however you would measure that) for him to leave.
As for the office space, i'm not sure that's an issue but for the record my very good colleague who was part of the Sales team for the whole period was in discussion with him daily in the office.
Hope that clarifies
If he was sidelined in 2004 why did it take almost 6 years (their most successful-however you would measure that) for him to leave.
As for the office space, i'm not sure that's an issue but for the record my very good colleague who was part of the Sales team for the whole period was in discussion with him daily in the office.
Hope that clarifies
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"which in itself brought 268 customers to NJ more than doubling the customer base"
It may well have done, but I guess it also depends on customer value as Marquis's customers were quarter shares divided in terms of eighths (or sixteenths?) weren't they? - I'm guessing NJE can't have valued them the same as a quarter share customer? Perhaps they could in terms of potentials to grow, I don't know.
I'm also not sure how you value the most successful years of a company which only made a small profit in one year of their 10+ years of operation, but I guess you do it in terms of shares sold (but don't attach any monetary value to it otherwise it probably wouldn't be as good!) and in the boom years we'd all enjoyed since 2004 share sales weren't going to be that low (especially when you could buy a sixteenth share of a Citation Bravo).
Have no idea whether this appointment will be of benefit to Vistajet or not, I hope so though, nothing to lose after all. Another aviation company set up an Advisory Board in the past couple of years, but for the life of me I can't remember who - anyone?
It may well have done, but I guess it also depends on customer value as Marquis's customers were quarter shares divided in terms of eighths (or sixteenths?) weren't they? - I'm guessing NJE can't have valued them the same as a quarter share customer? Perhaps they could in terms of potentials to grow, I don't know.
I'm also not sure how you value the most successful years of a company which only made a small profit in one year of their 10+ years of operation, but I guess you do it in terms of shares sold (but don't attach any monetary value to it otherwise it probably wouldn't be as good!) and in the boom years we'd all enjoyed since 2004 share sales weren't going to be that low (especially when you could buy a sixteenth share of a Citation Bravo).
Have no idea whether this appointment will be of benefit to Vistajet or not, I hope so though, nothing to lose after all. Another aviation company set up an Advisory Board in the past couple of years, but for the life of me I can't remember who - anyone?
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Apart from the quality of landings and other rubbish, I would say that these top guys moving from one major player to another player is no more significant than a "professional, qualified and experienced" person moving to another outfit requiring a "professional, qualified and experienced" person with appropriate background.
Basically we all have a career to run... I wouldn't read too much into it.
On top of that I agree with Daifly and his view on how relative things may be.
Still, I wish Vista Jet good luck. If they manage to stimulate the market, we will all be winners in the end.
(Plus I prefer their paint scheme to ours
)
Basically we all have a career to run... I wouldn't read too much into it.
On top of that I agree with Daifly and his view on how relative things may be.
Still, I wish Vista Jet good luck. If they manage to stimulate the market, we will all be winners in the end.
(Plus I prefer their paint scheme to ours
)
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Daifly & Amex
Dailfy
Your post, while a little vague in places, is potentially one of the most incisive i have ever seen with regard to the last 10 yrs of frax. It's not how I (or any independant) would value success that's important, but what the owners of the company agree with the management on how to value success. In this case even more important as the owner has a 50yr track record as a long term investor therefore making short term profit goals less appropriate and possibly allows management to find other measure which they can "manage" more easily, which will bring them the rewards they want, despite the amount of capital required, as they know the owner is in for the long term with pockets to match, of which customer numbers (and not profitable customers) are a very simple one...
Amex, appreciate the positive message and many thanks.
Just for the record if you want an example of the difference in mind set between VJ and NJ then look at fleet composition. At the height of NJ they had around 170 aircraft (dont shoot me for being +/- 10) however of that around 80 were light cabin (Bravo/400XP) more than 40% which assumining you know the economics are more difficult to make profitable than mid cabin (especially as they have similar crew/landing/handling costs) In addition it is reported that Richard Santulli wanted to ditch the light cabin and focus on the more profitable mid/large/ultra long range, moving very much towards VJ's model.
VJ have a very targeted focus and have little or no interest in building light cabin, but are focussed on mid/large/ultrawhere there is at least a reasonable margin, and due to the reduction in production over the last 18 months, will likely maintain value better (at what level not sure) than light cabin.
Despite marketing fluff (which i know we get slagged for, just like everyone else) we (or should i say the owner) is totally focussed on building the value profitably and bringing it to a wider audience and this time not forgetting Africa and Asia Pacific.
This business is never going to be easy, but we can make it profitable which means we might just have a long term future.........and even for the most sceptical of posters i think it's worth a bloody good go!!!!
Your post, while a little vague in places, is potentially one of the most incisive i have ever seen with regard to the last 10 yrs of frax. It's not how I (or any independant) would value success that's important, but what the owners of the company agree with the management on how to value success. In this case even more important as the owner has a 50yr track record as a long term investor therefore making short term profit goals less appropriate and possibly allows management to find other measure which they can "manage" more easily, which will bring them the rewards they want, despite the amount of capital required, as they know the owner is in for the long term with pockets to match, of which customer numbers (and not profitable customers) are a very simple one...
Amex, appreciate the positive message and many thanks.
Just for the record if you want an example of the difference in mind set between VJ and NJ then look at fleet composition. At the height of NJ they had around 170 aircraft (dont shoot me for being +/- 10) however of that around 80 were light cabin (Bravo/400XP) more than 40% which assumining you know the economics are more difficult to make profitable than mid cabin (especially as they have similar crew/landing/handling costs) In addition it is reported that Richard Santulli wanted to ditch the light cabin and focus on the more profitable mid/large/ultra long range, moving very much towards VJ's model.
VJ have a very targeted focus and have little or no interest in building light cabin, but are focussed on mid/large/ultrawhere there is at least a reasonable margin, and due to the reduction in production over the last 18 months, will likely maintain value better (at what level not sure) than light cabin.
Despite marketing fluff (which i know we get slagged for, just like everyone else) we (or should i say the owner) is totally focussed on building the value profitably and bringing it to a wider audience and this time not forgetting Africa and Asia Pacific.
This business is never going to be easy, but we can make it profitable which means we might just have a long term future.........and even for the most sceptical of posters i think it's worth a bloody good go!!!!
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vistajet light cabin?
strategy?
or maybe VJ dont have light jets because.... Bombardier don't make them....?
if bombardier made an aircraft that competed with the Bravo / CJ3 im sure VJ would have them.......imho
before anyone says anything....Lear40 clearly does not compete well with Cessna light jets, because if it did we would already have more operating in Europe.
so vj lack of light fleet is probably also due to this
or maybe VJ dont have light jets because.... Bombardier don't make them....?
if bombardier made an aircraft that competed with the Bravo / CJ3 im sure VJ would have them.......imho
before anyone says anything....Lear40 clearly does not compete well with Cessna light jets, because if it did we would already have more operating in Europe.
so vj lack of light fleet is probably also due to this
Last edited by Grecian2000; 8th Jan 2010 at 19:08.
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Grecian
"if bombardier made an aircraft that competed with the Bravo / CJ3 im sure VJ would have them.......imho"
Sorry to correct you, NO VJ would not have that aircraft as there's no margin to be earned.
As Peter F Drucker said (I paraphrase) " if a business isn't profitable, it's not a business!!"
Sorry to correct you, NO VJ would not have that aircraft as there's no margin to be earned.
As Peter F Drucker said (I paraphrase) " if a business isn't profitable, it's not a business!!"