Exclusive Jets, LLC, operating as flyExclusive, has agreed to purchase up to 14 additional Cessna Citation business jets; with eight XLS Gen2 aircraft to be delivered in 2024 and up to six Longitudes with initial deliveries of the first two expected in 2025. These aircraft will provide customers of flyExclusive's fractional programme additional options in the midsize and super-midsize segments.
In addition, the company has exercised its option to purchase an additional five Citation CJ3+ aircraft from its order of up to 30 CJ3+ jets earlier this year. These aircraft are expected to be delivered in 2024.
“This agreement reinforces flyExclusive's rapid growth and further bolsters the company's offerings in the fractional space. We continue to elevate the private flying experience, delivering consistent, reliable and world-class service for our customers,” says Jim Segrave, chairman and CEO, flyExclusive. “We are proud to deepen our relationship with Textron Aviation and support high quality, American manufacturing. We appreciate Textron Aviation's support as we continue to grow into one of the largest private jet charter operators in the industry."
Owning and operating its fleet of 90 light, midsize, super-midsize and heavy jets, the company is based in Kinston, North Carolina, and is a premiere Part 135 owner/operator of private jet experiences. It provides Jet Club, Partner and fractional programmes.
"We're proud that flyExclusive, a growing fractional operator, has chosen the Citation XLS Gen2 and Citation Longitude to offer comfortable, spacious and unforgettable experiences to its customers entering business aviation," adds Ron Draper, president and CEO, Textron Aviation. "We appreciate its confidence in Textron Aviation as it continues to expand its already impressive Citation fleet and look forward to continuing our relationship for years to come."
flyExclusive is one of the largest owners/operators of Citations in the world. The company operates a fleet of Cessna Citation jets including Citation X, Citation Sovereign, Citation Excel/ XLS, Citation CJ3 /CJ3+ and Citation Encore/ Encore+ aircraft models.
In a further major development flyExclusive and EG Acquisition Corp., a special purpose acquisition company (SPAC) sponsored by EnTrust Global and GMF Capital, have entered into a definitive business combination agreement.
Under the terms of the agreement, flyExclusive and EG Acquisition Corp. will combine into a new company that is expected to be listed on the New York Stock Exchange and will adopt flyExclusive as the corporate operating brand. flyExclusive founder and CEO Jim Segrave will lead the combined company.
The transaction, once completed, will provide flyExclusive with significant additional capital to continue its growth, better serve customers and execute its strategic plan to become the nation's first fully vertically integrated private aviation company. flyExclusive's leadership team will retain control of the company, ensuring a generational company will continue to grow in Kinston, North Carolina.
In addition, certain sovereign wealth and U.S. institutional investors are providing $85 million to flyExclusive, via the purchase of convertible notes that were entered into simultaneously with the signing of the business combination agreement. The notes will convert into shares of the combined company upon the consummation of the business combination at a price of $10 per share (subject to adjustment in certain instances). The $85 million from the notes is expected to be primarily used by flyExclusive for the acquisition of additional aircraft and for related expenses.
flyExclusive entered the fractional market with the order of 30 CJ3+ aircraft earlier in 2022. Expansion of the fractional programme to the mid and super-mid categories is expected immediately. The flyExclusive fractional programme is structured like the Jet Club programme with daily access fees and aggressive hourly rates, no monthly management fees or blackout dates and minimal peak days.
flyExclusive flew over 46,000 hours in 2021, over 46% percent more than the prior year. The company is currently flying nearly 5,000 hours per month. During the COVID pandemic, flyExclusive was one of only two operators that flew more flight hours in 2020 than it flew in 2019. Additionally, the company delivered major enhancements to its Jet Club and enjoyed triple digit membership growth while many operators scaled back their jet card offerings and added restrictions for new members to offset jet demand. flyExclusive made investments to its fleet to guarantee availability so new Jet Club members were able to fly immediately without any restrictions or blackouts.
flyExclusive is both ARG/US and Wyvern certified, which is achieved by less than 5% of all private flight providers.
EG Acquisition Corp. is a special purpose acquisition company (SPAC) sponsored by EnTrust Global and GMF Capital that raised $225 million in its initial public offering on May 26, 2021.
Under the terms of the definitive business combination agreement, the transaction values flyExclusive at a pre-transaction equity value of $600 million and is expected to provide up to $310 million in proceeds, including $85 million of committed convertible notes described above and $225 million of SPAC cash in trust assuming no redemptions. No additional funding beyond the $85 million of already committed convertible notes is required for the business combination to close.
Upon the closing of the proposed transaction, flyExclusive's senior management will continue to serve in their current roles. The current flyExclusive owners will retain approximately 60% of the ownership at close, assuming no redemptions in SPAC cash held in trust.
The respective boards of directors of both EG Acquisition Corp. and flyExclusive have each approved the proposed transaction. Completion of the proposed transaction is subject to approval of EG Acquisition Corp. stockholders and other customary closing conditions. The parties expect that the proposed transaction will be completed in Q1 2023.