VistaJet's model gains ground

The Middle East is one of VistaJet's fastest growing markets and the private aviation operator hopes to achieve regional growth of 10 per cent in the next three years. The Swiss-based company earlier announced that a large part of its $1.2 billion (Dh4.4bn) order for Bombardier business jets is earmarked for the Middle East. Chairman and founder Thomas Flohr told Emirates Business that the region's private aviation and charter market had untapped potential. "VistaJet's business model is gaining ground as customers look to have an aircraft on call, but without having the ongoing costs associated with owning their own jet." This year is expected to be tough for the business jet sector. What is your strategy for 2009? VistaJet is optimistic for 2009. Our business model places the company in a positive position and our goal is to increase international business by about 30 per cent this year. VistaJet's aircraft, from Bombardier, all operate under the manufacturer's warranty. This means the all new fleet provides the highest levels of luxury, safety and security. How has the downturn affected your business in the Middle East and other parts of the world? VistaJet's quality aircraft and unique business model can more than ride out the downturn. Last year VistaJet carried 11,000 passengers and this year the company plans to carry about 15,000 to 16,000. Despite the economic downturn January and February have been very strong. VistaJet has three aircraft in the Middle East and this will increase to five or six by the end of the year. And we expect that within three years a third of our fleet will touch down and bring passengers in and out of the Middle East. What is your overall view of the Middle East market? The Middle East currently contributes five per cent to the company's bottom line and VistaJet expects this percentage to grow to a third of its total business. VistaJet has an active customer base through the acquisition of SkyJet, a subsidiary of Bombardier. SkyJet has operations in the Middle East and Hong Kong, which has given VistaJet access to two of the world's key growth markets. VistaJet has been present in Dubai since July 2008 and entered Beirut this year. Saudi Arabia is a particularly strong market and accounts for 60 per cent of total Middle East demand for private jets. The other major markets are Abu Dhabi, Egypt and Lebanon. You offer different ownership solutions. How do they work? Customers can choose our On Demand charter service, our VistaJet Programme or a combination of the two to suit their travel profile. Our On Demand business has been, and continues to be, the most popular way to access private aviation. VistaJet is a leader in the global charter business and offers customers a unique opportunity to fly in new Bombardier aircraft at highly competitive market rates. The VistaJet Programme offers customers another way to access our fleet with guaranteed availability and the highest levels of service and value. For the first time customers now benefit, both operationally and financially, from the largest service area in business aviation, encompassing Europe, the Middle East and Asia. A Programme customer can fly within, or between, any of these regions for fixed hourly costs, only paying for the time they fly because there are no positioning costs. Uniquely, Programme customers can choose to purchase an aircraft from VistaJet, retaining all the operational benefits of the Programme but reducing and fixing flying costs at a level not previously available. What is the contribution of the Middle East to your bottom line? The Middle East currently contributes five per cent to the company's bottom line. VistaJet believes the time is right for further strengthening in the region and expects to achieve market growth of 10 per cent in the next three years. Where do you see the company being in five years? I am committed to VistaJet's continued growth and to driving innovation in the industry. The next five years will offer great opportunities to grow the business and we will focus on building up our operations across what I call the old silk road, from London to the centre of Europe, then Moscow, the Middle East and India and then down to South China, Malaysia and Singapore. What is your growth strategy? VistaJet is already the fastest growing private aviation company outside the US and the fleet will comprise more than 100 state-of-the-art short, mid-range and intercontinental aircraft by 2012. We will continue to focus growth and development in our key markets including Middle East, Europe and Asia. We are considering a launch in India within 18 months. PROFILE: Thomas Flohr Chairman, VistaJet Flohr joined Comdisco as European President and steered the start-up towards becoming a leading provider of IT finance. In 1999, Flohr was appointed President of Comdisco, Finance, worldwide and in 2002-03 he acquired Comdisco Switzerland and Germany, which is called now Comprendium Holding, one of t