Volato Launches the First Fractional G280 Ownership Program in the United States

Rhea-AI Summary

Volato Group, Inc. (NYSE American: SOAR) has launched the first Fractional G280 Ownership Program in the United States, expanding its offering to the super-midsize category. The Gulfstream G280, capable of seating up to 10 guests with a range of 3,600 nautical miles, complements Volato's existing HondaJet fleet. CEO Matt Liotta emphasized the move addresses customer demand for larger aircraft for longer journeys and bigger groups.

Volato expects to receive two G280s this year, with the first arriving in August. The company will conduct a multi-city viewing tour from August 9-15, visiting Atlanta, Chicago, Los Angeles, Dallas, Miami, New York, and Houston. Fractional owners benefit from unlimited flying hours, no blackout days, and a guaranteed minimum revenue share of 650 hours per year for both HondaJet and G280.

Positive

• Expansion into super-midsize aircraft category with G280
• First company in the U.S. to offer fractional ownership of G280
• Addresses customer demand for larger, longer-range aircraft
• Two G280 deliveries expected in 2023
• Multi-city tour planned to showcase the new aircraft
• Unlimited flying hours and no blackout days for fractional owners
• Guaranteed minimum revenue share of 650 hours per year for owners

Negative

• None.

Insights

Aviation Industry Analyst

Volato's introduction of the first fractional G280 ownership program in the U.S. marks a significant expansion for the company, potentially impacting its market position and financial performance. Here are the key takeaways:

• Market Expansion: By entering the super-midsize category, Volato is diversifying its fleet and targeting a new segment of customers. This move could lead to increased revenue streams and market share growth.
• Competitive Advantage: As the only U.S. provider offering fractional ownership of the G280, Volato gains a unique selling proposition. This exclusivity may attract high-net-worth individuals and corporations looking for longer-range, larger-capacity private aviation solutions.
• Fleet Synergy: The G280's capabilities complement Volato's existing HondaJet fleet, allowing the company to cater to a broader range of customer needs. This strategic fleet expansion could enhance customer retention and acquisition.
• Revenue Potential: With a guaranteed minimum revenue share of 650 hours per year for G280 owners, Volato is positioning itself for potentially significant revenue growth. This model could prove attractive to investors looking for stable returns in the volatile private aviation market.

While the expansion is promising, investors should monitor factors such as capital expenditure for fleet acquisition, operational costs and market demand for super-midsize jets. The success of this program could be a catalyst for Volato's stock performance, but it's important to assess how quickly the company can achieve profitability with this new offering.

Financial Analyst

Volato's strategic move into the super-midsize jet market with the G280 fractional ownership program presents intriguing financial implications:

• Revenue Diversification: By adding a larger, longer-range aircraft to its fractional offerings, Volato is poised to tap into a higher-value market segment. This could potentially lead to increased average revenue per customer and improved profit margins.
• Asset Utilization: The guaranteed minimum revenue share of 650 hours per year for G280 owners suggests a high utilization rate, which is important for profitability in the capital-intensive aviation industry. This model could optimize Volato's return on assets.
• Capital Structure: Investors should pay attention to how Volato finances this fleet expansion. The acquisition of G280s will likely require significant capital investment, which could impact the company's debt-to-equity ratio and interest expenses.
• Market Timing: Launching this program amidst growing demand for private aviation services post-pandemic could be advantageous. However, the high-end market is also more sensitive to economic fluctuations, presenting both opportunities and risks.

While the program shows promise, it's important to consider the potential impact on Volato's cash flow, particularly in the short term as the company invests in new aircraft and marketing efforts. The success of this initiative could significantly influence Volato's financial performance and valuation metrics in the coming quarters.

Market Research Analyst

Volato's launch of the G280 fractional ownership program reveals interesting market dynamics and potential shifts in the private aviation landscape:

• Market Segmentation: By offering both HondaJet and G280 options, Volato is strategically positioning itself to serve a wider spectrum of the private aviation market. This dual-tier approach could capture customers at different price points and travel needs.
• Customer Acquisition Strategy: The multi-city tour planned for August is a smart move to generate interest and secure early adopters. This direct engagement approach could be particularly effective in the high-touch, relationship-driven private aviation sector.
• Competitive Landscape: As the only U.S. provider offering fractional ownership of the G280, Volato is carving out a unique niche. This differentiation could be a powerful tool in attracting customers who specifically desire the G280's capabilities.
• Market Trends: The expansion into larger, longer-range aircraft aligns with the trend of increasing demand for private aviation solutions that can handle transcontinental and transatlantic flights. This move suggests Volato is adapting to evolving customer preferences in the post-pandemic era.

The success of this program will likely depend on Volato's ability to effectively market the unique benefits of the G280, such as its steep approach and high-altitude landing capabilities. Monitoring customer uptake and satisfaction rates in the coming months will be important in assessing the program's market fit and long-term viability.

-- Expands Fractional Offering to Super Mid-Size Category with the Gulfstream G280

-- Volato’s First G280 Will be Available for Viewing in an August Multi-City Tour

ATLANTA--(BUSINESS WIRE)-- Volato Group, Inc. (NYSE American: SOAR) (“Volato”), a leading private aviation company and the largest HondaJet operator in the United States, today announced the launch of its Fractional G280 Ownership Program, expanding its fractional offering to the super-midsize category and becoming the only provider in the U.S. to offer fractional ownership of the G280.

The Gulfstream G280 is designed to complement Volato’s existing fleet by offering a spacious cabin that comfortably seats up to 10 guests and boasts an extended range of up to 3,600 nautical miles. This allows for nonstop coast-to-coast and transatlantic flights, providing access to more destinations with certifications for steep approaches and high-altitude landings.

“Our customers’ travel needs are diverse, and while the majority of private aviation missions are efficiently served by the HondaJet, there is significant demand for larger aircraft for longer journeys and bigger groups,” said Matt Liotta, CEO of Volato. “The G280 addresses these needs, ensuring we continue to provide the right aircraft for every mission. This addition reinforces our commitment to offering tailored solutions that enhance flexibility and convenience for our customers.”

Volato anticipates taking delivery of two Gulfstream G280s this year, with its first aircraft scheduled to arrive in August. The first jet will embark on a multi-city viewing tour offering potential buyers a firsthand look and the opportunity to secure a fractional interest in the G280.

*Inaugural Volato G280 Static Tour Cities:

• Friday, August 9^th: Atlanta, GA, 3-7 PM
• Saturday, August 10^th: Chicago, IL, 3-7 PM
• Sunday, August 11^th: Los Angeles, CA, 2-5 PM
• Monday, August 12^th: Dallas, TX, 4-7 PM
• Tuesday, August 13^th: Miami, FL, 3-7 PM
• Wednesday, August 14^th: New York, NY, 3-7 PM
• Thursday, August 15^th: Houston, TX, 3-7 PM

*Exact event times may be subject to change.

Unmatched Ownership Benefits

Volato fractional owners enjoy unparalleled benefits, including unlimited flying hours, no blackout days, and a guaranteed minimum revenue share of 650 hours per year for both the HondaJet and the G280. This ensures maximum value and flexibility for Volato customers.

For more information about Volato’s fractional ownership program or to schedule a viewing of the G280, visit: FlyVolato.com

About Volato:

Volato (NYSE American: SOAR) is a leader in private aviation, redefining air travel through modern, efficient, and customer-designed solutions. Volato provides a fresh approach to fractional ownership, aircraft management, jet card, deposit and charter programs, all powered by advanced, proprietary mission control technology. Volato's fractional programs uniquely offer flexible hours and a revenue share for owners across the world’s largest fleet of HondaJets, which are optimized for missions of up to four passengers. For more information visit www.flyvolato.com.

All Volato Part 135 charter flights are operated by its DOT/FAA-authorized air carrier subsidiary (GC Aviation, Inc. d/b/a Volato) or by an approved vendor air carrier.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240730368673/en/

For Media:

media@flyvolato.com

For Investors:

investors@flyvolato.com

Source: Volato Group, Inc.

FAQ

What new aircraft program has Volato (SOAR) launched in 2023?

Volato (SOAR) has launched the first Fractional G280 Ownership Program in the United States, expanding its offering to the super-midsize aircraft category.

How many G280 aircraft is Volato (SOAR) expecting to receive in 2023?

Volato (SOAR) anticipates taking delivery of two Gulfstream G280 aircraft in 2023, with the first scheduled to arrive in August.

What are the key benefits of Volato's (SOAR) fractional ownership program for the G280?

Volato's (SOAR) fractional ownership program for the G280 offers unlimited flying hours, no blackout days, and a guaranteed minimum revenue share of 650 hours per year.

When and where is Volato (SOAR) conducting its G280 viewing tour in August 2023?

Volato (SOAR) is conducting a G280 viewing tour from August 9-15, 2023, visiting Atlanta, Chicago, Los Angeles, Dallas, Miami, New York, and Houston.