flyExclusive and JetQuity Launch Residual Value Guarantee Program
flyExclusive (NYSEAMERICAN: FLYX) has announced the JetQuity Protect residual value guarantee program for fractional owners of its Cessna Citation CJ3+ fleet. This program allows owners to lock in a minimum value for their share with a one-time fee, ensuring a guaranteed sale price after a five-year term regardless of market depreciation. The initiative aims to provide financial certainty and ease in planning investments. flyExclusive operates the world's second-largest Cessna Citation fleet, offering access without monthly management fees.
- The JetQuity Protect program provides financial certainty with a guaranteed minimum residual value.
- One-time fixed fee eliminates ongoing monthly management fees.
- flyExclusive operates the second-largest fleet of Cessna Citation aircraft, ensuring availability and versatility.
- The program offers a reliable investment proposition for fractional owners, potentially increasing demand.
- The fixed fee for the JetQuity Protect program might be substantial, potentially limiting participation.
- Market depreciation risks may still affect owners not participating in the program.
- The five-year term might be too long for some investors, affecting liquidity.
Insights
The introduction of the JetQuity Protect residual value guarantee program by flyExclusive could have several implications for both the company and its investors. This program provides a safeguard against market depreciation for fractional jet owners, which could make flyExclusive's fractional ownership offering more attractive to potential buyers. By locking in a minimum value for their investment, customers can plan better financially, reducing the uncertainty that often accompanies aircraft ownership.
This move could positively impact flyExclusive's financial performance by potentially increasing the demand for their fractional ownership program. More customers might be willing to invest in fractional shares, knowing that their investment is protected. Over time, this can lead to increased revenue streams and a larger customer base for flyExclusive.
However, it's important to consider the financial risk that flyExclusive is assuming by guaranteeing these residual values. If the market for private jets declines significantly, the company might find itself obligated to pay out substantial sums to cover the guaranteed minimum values. This could impact their profitability and overall financial health. Investors should keep an eye on the macroeconomic factors that influence the private jet market, as these will play a important role in determining the success and sustainability of this program.
From a market perspective, the JetQuity Protect program could significantly differentiate flyExclusive from its competitors in the private jet fractional ownership sector. By offering guaranteed residual values, flyExclusive is addressing a key pain point for potential customers—uncertainty about the future value of their investment. This value proposition can make the company's fractional ownership model more appealing compared to other options in the market, potentially attracting new customers and retaining existing ones.
This strategy reflects a broader trend in the luxury market where companies are increasingly offering financial assurances to reduce buyer's risk. It’s similar to the guaranteed buy-back programs seen in the luxury car market, which have proven to be effective in boosting sales. If successful, this program could set a new standard in the industry, prompting other private jet companies to offer similar guarantees.
However, the effectiveness of this program will largely depend on how it's perceived by the market. Transparent communication and robust marketing will be key to ensuring that potential customers understand the benefits and feel confident in the company's ability to honor these guarantees.
The Program is designed to provide certainty and predictability in customers’ private jet share investments
Fractional owners pay a one-time fixed fee, and after the five-year term, the Program guarantees a minimum residual value for their share, regardless of market depreciation, with no maximum on the share value. The Program provides certainty as to the future value of the asset while ensuring that fractional owners can sell their aircraft share at the guaranteed price.
“Transparency and innovation are at the core of our fractional model and continue to differentiate us in the marketplace,” said Brad Blettner, Chief Revenue Officer of flyExclusive. “The JetQuity Protect program offers a compelling proposition to our fractional customers by creating easier planning and certainty in their investment. We’re proud to further simplify the process of owning a private jet share and provide our customers with a best-in-class experience along the way.”
flyExclusive owns and operates the second-largest fleet of Cessna Citation aircraft in the world, giving fractional owners guaranteed access to a large, versatile fleet of Light, Mid or Super-Mid aircraft with no monthly management fees.
For more information on flyExclusive’s fractional offering or the JetQuity Protect program, please contact fractional@flyexclusive.com.
About flyExclusive
flyExclusive is a vertically integrated, FAA-certificated air carrier providing private jet experiences by offering customers a choice of on-demand charter, Jet Club, and fractional ownership services to destinations across the globe. flyExclusive has one of the world’s largest fleets of Cessna Citation aircraft, and it operates a combined total of approximately 100 jets, ranging from light to large cabin sizes. The company manages all aspects of the customer experience, ensuring that every flight is on a modern, comfortable, and safe aircraft. flyExclusive’s in-house repair station, aircraft paint, cabin interior renovation, and avionics installation capabilities, are all provided from its campus headquarters in
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to: the ability of the Company to file timely file its required annual and quarterly reports with the SEC; the ability of the Company to regain compliance with NYSE American continued listing standards and maintain the listing of the Company’s securities on a national securities exchange; the ability of the Company to comply with covenants under and repay its debt; the potential dilution of stock ownership by our capital raising efforts; management of growth; the outcome of any legal proceedings; volatility of the price of the Company’s securities due to a variety of factors, including publication of articles about the Company by third parties, changes in the competitive and highly regulated industries in which flyExclusive operates, variations in operating performance across competitors, changes in laws and regulations affecting flyExclusive’s business; the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; and the risk of downturns and a changing regulatory landscape in the highly competitive aviation industry. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of flyExclusive’s registration statement on Form S-1 and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. The Company does not give any assurance that it will achieve its expectations.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240613773208/en/
Media Contact: Jillian Wilson, Marketing Specialist
media@flyexclusive.com
Investor Relations Contact: Sloan Bohlen, Solebury Strategic Communications
investors@flyexclusive.com
Source: flyExclusive, Inc.
FAQ
What is the JetQuity Protect program from flyExclusive?
How does the JetQuity Protect program benefit fractional owners of FLYX?
What is the duration of the JetQuity Protect program for FLYX fractional owners?
Does the JetQuity Protect program have any fees?
What happens if the market value of the share depreciates in the JetQuity Protect program?
