Vistajet Future
Joined: Oct 2007
Posts: 42
Likes: 0
From: UK
Joined: Nov 2007
Posts: 31
Likes: 0
From: Malta
bloomberg.com VistaJet Yearly Earnings Drop as Private Jet Firm’s Debt Pile Grows
Michael Riegel DipM BSc MSc MBAMichael Riegel DipM BSc MSc MBA• 1st• 1stBusiness Aviation Publisher, Market Analyst, Business Jet Designer & Consumer AdvocateBusiness Aviation Publisher, Market Analyst, Business Jet Designer & Consumer Advocate
2d • Edited • 2d • Edited •
Bloomberg & Vista Global 2023 Results
The attached Bloomberg article stimulated more questions than it answered, at least for me!
Thomas Flohr appeared to acknowledge that the company has been struggling, referring to 2023 as a “year of transition”. As if to illustrate his point, Vista Global reported a 5.2% decline in Flohr’s favored EBITDA. Worse, the company also reported a substantial 30% increase in their fixed costs, without providing any detailed justification for this fixed cost escalation.
Notably absent from the Bloomberg article is any detail surrounding Vista Global’s free cash flow performance. The company reported boosting liquidity, during 2023, but made no mention of their full-year 2023, or more recent, rate of cash consumption.
Debt is indicated at $3.9 billion, at the end of 2023, an increase of $133 million versus 2022. Vista Global, with PriceWaterhouseCooper as their latest auditor, restated the number of aircraft they owned, versus those they leased, as at the end of 2022, which would seem to be a fairly straightforward number for the company’s accountants to determine, IMO.
Thomas Flohr asserted that his 86% ownership stake provides an “enormous equity cushion” should he need to bolster Vista Global’s liquidity, which seems like an acknowledgment that this might become necessary.
The Bloomberg article invites several rather elementary follow-up questions, concerning free cash flow, Vista Global’s 2022 earnings restatement and their surprising 30% increase in 2023 fixed costs. Sadly, this article leaves a few too many gaps in Vista Global’s financial performance to be usable as an indicator of Vista Global’s financial wellbeing.
Overall, the Bloomberg article did little to allay my longstanding concerns about Vista Global’s financial performance and business model. While it is clear that Vista Global’s founder has a great deal of equity to trade, should such become necessary, his comments failed to convince me that his company would be an attractive investment for potential stakeholders.
Hopefully, Mr. Flohr will be more forthcoming, in future interviews, concerning the overall financial position of Vista Global.
2d • Edited • 2d • Edited •
Bloomberg & Vista Global 2023 Results
The attached Bloomberg article stimulated more questions than it answered, at least for me!
Thomas Flohr appeared to acknowledge that the company has been struggling, referring to 2023 as a “year of transition”. As if to illustrate his point, Vista Global reported a 5.2% decline in Flohr’s favored EBITDA. Worse, the company also reported a substantial 30% increase in their fixed costs, without providing any detailed justification for this fixed cost escalation.
Notably absent from the Bloomberg article is any detail surrounding Vista Global’s free cash flow performance. The company reported boosting liquidity, during 2023, but made no mention of their full-year 2023, or more recent, rate of cash consumption.
Debt is indicated at $3.9 billion, at the end of 2023, an increase of $133 million versus 2022. Vista Global, with PriceWaterhouseCooper as their latest auditor, restated the number of aircraft they owned, versus those they leased, as at the end of 2022, which would seem to be a fairly straightforward number for the company’s accountants to determine, IMO.
Thomas Flohr asserted that his 86% ownership stake provides an “enormous equity cushion” should he need to bolster Vista Global’s liquidity, which seems like an acknowledgment that this might become necessary.
The Bloomberg article invites several rather elementary follow-up questions, concerning free cash flow, Vista Global’s 2022 earnings restatement and their surprising 30% increase in 2023 fixed costs. Sadly, this article leaves a few too many gaps in Vista Global’s financial performance to be usable as an indicator of Vista Global’s financial wellbeing.
Overall, the Bloomberg article did little to allay my longstanding concerns about Vista Global’s financial performance and business model. While it is clear that Vista Global’s founder has a great deal of equity to trade, should such become necessary, his comments failed to convince me that his company would be an attractive investment for potential stakeholders.
Hopefully, Mr. Flohr will be more forthcoming, in future interviews, concerning the overall financial position of Vista Global.
Joined: Mar 2009
Aviation Qualifications: ATPL
Posts: 136
Likes: 47
From: UK
I entirely agree, I’m waiting to see what the next round looks like. Egos being what they are - escalation of this public measuring contest seems inevitable. I watch on with interest
Joined: Jun 2001
Posts: 196
Likes: 3
From: .
https://privatejetcardcomparisons.co...k-to-negative/
Vista’s S&P Global Ratings-adjusted EBITDA declined by 4% to about $670 million in 2023, compared with our previous forecast of an increase to $820 million-$850 million. We include nonrecurring costs and exclude gains on aircraft sales in our calculation of adjusted EBITDA. Revenue was materially weaker than we forecast, primarily in the on-fleet on-demand and third-party marketplace segments, but with continued strong growth in subscription program revenue, in line with the company’s strategy. Demand for private charter flights in North America and Europe was softer than we anticipated, but we understand that Vista outperformed the broader market. Vista’s refurbishment program for jets acquired in 2022 affected the fleet’s availability and revenue in 2023. Furthermore, higher staff costs contributed to the reduction of our adjusted EBITDA figure. In addition, higher debt and interest rates led to adjusted interest paid (including refinancing costs) almost doubling to $324 million, and tighter supplier terms led to a working capital outflow of $67 million. As a result, Vista’s adjusted FFO to debt reduced to about 7% in 2023 from 11% in 2022 and is now well below our threshold of above 12% for the B+ rating.
Vista’s S&P Global Ratings-adjusted EBITDA declined by 4% to about $670 million in 2023, compared with our previous forecast of an increase to $820 million-$850 million. We include nonrecurring costs and exclude gains on aircraft sales in our calculation of adjusted EBITDA. Revenue was materially weaker than we forecast, primarily in the on-fleet on-demand and third-party marketplace segments, but with continued strong growth in subscription program revenue, in line with the company’s strategy. Demand for private charter flights in North America and Europe was softer than we anticipated, but we understand that Vista outperformed the broader market. Vista’s refurbishment program for jets acquired in 2022 affected the fleet’s availability and revenue in 2023. Furthermore, higher staff costs contributed to the reduction of our adjusted EBITDA figure. In addition, higher debt and interest rates led to adjusted interest paid (including refinancing costs) almost doubling to $324 million, and tighter supplier terms led to a working capital outflow of $67 million. As a result, Vista’s adjusted FFO to debt reduced to about 7% in 2023 from 11% in 2022 and is now well below our threshold of above 12% for the B+ rating.
Joined: Oct 2007
Posts: 42
Likes: 0
From: UK
VistaJet files €386 million lawsuit against rival company
https://theshiftnews.com/2024/04/24/...rival-company/
Joined: May 2024
Posts: 1
Likes: 0
From: frankfurt
What a shame! I was in business aviation for years and I thought it was great. However, nowhere are there as many narcissists and weirdos as there. I also know the two companies and their owner or CEOs.
One is a self-promoter par excellence and a narcissist and the other is consumed by envy, resentment and bitterness. What a waste of resources.
One is a self-promoter par excellence and a narcissist and the other is consumed by envy, resentment and bitterness. What a waste of resources.
Joined: Jul 2007
Posts: 2,731
Likes: 53
From: World
Vistajet cash reserves drop as super-rich cut their advance flight bookings
Joined: Jan 2006
Posts: 828
Likes: 98
From: Germany
That's behind a paywall.
https://www.newsminimalist.com/artic...ravel-d8f3d774
https://www.newsminimalist.com/artic...ravel-d8f3d774
VistaJet's cash reserves have fallen to $62 million, the lowest since the pandemic, as wealthy customers reduce travel plans. Sales of flying hours dropped 10.5% in the nine months ending September compared to the previous year.
The company, which has $4.5 billion in debt, is facing financial challenges. It reported a net loss of $139 million for 2023, despite changing auditors and adjusting depreciation schedules to improve its financial outlook.
In the first nine months of 2024, VistaJet sold 22,100 flying hours, while its membership base grew to 1,250. The company has access to $105 million in funds but carries total liabilities of $6.081 billion against assets of $6.128 billion.
The company, which has $4.5 billion in debt, is facing financial challenges. It reported a net loss of $139 million for 2023, despite changing auditors and adjusting depreciation schedules to improve its financial outlook.
In the first nine months of 2024, VistaJet sold 22,100 flying hours, while its membership base grew to 1,250. The company has access to $105 million in funds but carries total liabilities of $6.081 billion against assets of $6.128 billion.
Joined: Jul 2007
Posts: 2,731
Likes: 53
From: World
VistaJet cash reserves drop as super-rich cut travel plans
Debt-laden private jet group sells fewer flying hours to wealthy customersVistaJet’s cash has dropped to its lowest level since the start of the pandemic after the heavily indebted luxury airline’s super-rich customers scaled back their travel plans. Flying hours bought in advance through the private jet provider’s subscription service were 10.5 per cent lower in the nine months to the end of September than the same period a year earlier, according to financial statements reviewed by the Financial Times. That left its cash reserves at $62mn, the lowest level since 2020 when Covid-19 grounded aircraft around the world. The drop in advance sales of flying hours by the Dubai group, a debt-fuelled rival to market leader NetJets whose membership scheme allows customers to book a plane with as little as 24 hours notice, comes after a full-year decline in 2023. Details of the accounts follow reports that VistaJet, whose $4.5bn of debt was used to purchase top-of-the-line aircraft and smaller rivals, has attempted to raise as much as $1bn in new financing in recent months.
When sales of programme hours were growing they helped fund Vista’s operations because it receives subscription payments upfront then recognises the revenue only when the hours are used. The reversal of that trend is a headwind for Vista’s Swiss founder and owner Thomas Flohr, who has long defied concerns raised by some rivals, critics and the group’s previous accountants that its asset-heavy business model may be unsustainable. A combination of borrowing, $140mn of net losses and substantial short-term liabilities prompted auditor EY to warn in its opinion on the company’s 2022 accounts that “a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern”. Any such failure could have a dramatic effect on used jet prices if lenders seized and sold Vista’s fleet of 220 primarily Bombardier and Gulfstream aircraft. In that scenario, other owners of planes purchased with debt could face requests for more collateral from banks, similar to a margin call, if loan-to-value ratios changed materially with resale prices. For 2023, Vista changed auditors to PwC and altered the conservative depreciation schedules that Flohr has said contributed to Vista’s losses. After cutting $135mn from Vista’s depreciation expense, the airline made slightly improved net losses of $139mn for the year, and was judged a going concern. Sales of programme flying hours fell 13.1 per cent that year to 33,400, which Vista attributed to having had a bumper 2022 as it converted customers of airlines it purchased into subscribers.
Vista has said it typically sells memberships on a three-year contractual basis, and the cash from this programme “underpins the group’s forecasts and provides predictability in operating cash”. In the first nine months of 2024, Vista sold 22,100 programme hours. It also cut 40 “legacy” Cessna planes from its fleet and controlled growth in expenses to break even, generating $1mn of earnings from revenues that were up 7 per cent on a year earlier to $2.1bn. In addition to its membership programme Vista also offers charter services using both its own fleet and a “partner network” of managed and third-party aircraft, which contributed just under half of the group’s sales. Vista’s preferred profit measure, adjusted earnings before interest, tax, depreciation and amortisation, was up 7 per cent to $600mn over the same period. The airline burnt through $114mn of cash in those nine months. Cash outflows included $114mn of working capital and $118mn of payments related to previous acquisitions. Sales of programme hours have declined even as the number of members rose to 1,250 at the end of September from 910 at the start of 2023. With available capacity on a $230mn revolving credit facility, Vista reported access to available funds of $105mn at the end of September. Upcoming financing needs include a $239mn put option liability due in May 2026 related to a previous takeover. A $500mn bond and the revolving credit facility both mature in 2027. At the end of September, Vista carried total liabilities of $6.081bn, against assets of $6.128bn, leaving it with $46mn of equity. Its debt is rated B3 with a “stable” outlook by Moody’s, while S&P downgraded the outlook on its B+ rating to “negative” in April.
Bond yields on Vista debt maturing in 2028 have improved substantially since the start of last year, falling from a high of 17.2 per cent in January 2024 to 8.6 per cent this week, below the 9.5 per cent coupon. Vista said its shareholders and bond investors, who had been able to access its financial statements since November, “take confidence in our steady execution as readily demonstrated by our bond trading levels”, adding that “our client-centric strategy included refinement of our fleet to better service them over the long term”. Insight into the group’s financial performance comes as Flohr fights an English civil suit related to business deals that provided a foundation for him to launch VistaJet two decades ago. He has challenged an attempt to amend the breach of contract claim to one of deceit, denied any wrongdoing, and asked the court to throw out what his lawyers called the “hopeless” and “unevidenced” complaint.
Financial Times
Joined: Jan 2016
Posts: 108
Likes: 38
From: EU
Have they recovered the financial endeavors?
Sounds good roster but what to do with that if they go under after a few months and loose your current job to join them?
Sounds good roster but what to do with that if they go under after a few months and loose your current job to join them?
Last edited by zen krempie; 14th April 2025 at 11:53.
Joined: Aug 2021
Posts: 39
Likes: 0
From: Holand
Hi everyone, does anyone know the conditions and salary at Vistajet as a pilot if you're based in the UAE? Do they handle the visa process for you? Is the salary the same as in Europe but paid in AED? I saw they have a base in AUH and DXB, can anyone confirm this information? Thanks!
https://pilotcareercenter.com/Air-Ca...istaJet-Global
https://pilotcareercenter.com/Air-Ca...istaJet-Global
Joined: Dec 2018
Posts: 1
Likes: 0
From: london
I have assessment in Berlin soon. If you could can you please share any information on interview questions ATPL or SIM check? Thank you
