directional aviation revenue

You’re going to democratize ($7 million) King Air’s and light jet aircraft.’ So, we made the decision once we put the two companies together to get out of the Light Jet category (except the Embraer Phenom 300) and get into the Mid, Super-Mid and larger aircraft. In terms of further acquisitions, Ricci says, “There are always opportunities. With the launch of FXAIR, Directional Aviation’s North American on-demand charter segment grew its revenue by 55% in 2020 when compared to the year prior. Ricci is a 35-year aviation industry veteran. In 2000 I started Elite Traveler, a consumer lifestyle magazine distributed globally aboard private jets, where I was President and Editor-in-Chief until 2014. This week the directional aviation … One of the key responsibilities of the Austin City Manager is planning and implementing the City’s annual budget. We’ll have 20 large jet aircraft by the end of the year. I think the Flexjet decision to come up with Red Label was brilliant. %PDF-1.7 %���� FXAIR, a Directional Aviation portfolio company and sister brand to Flexjet. “Our only chance against NetJets is to see if we can out innovate them. Bitcoin Payments for Private Flights Soar, 20% of Privatefly’s Revenue Stems from Crypto Cryptocurrency customers are leveraging their new-found wealth to fly extra continuously with personal jets. In Defence, modest top-line growth … Kenneth C. "Kenn" Ricci is an American aviation entrepreneur, the principal of Directional Aviation Capital, which owns or invests in various aviation enterprises including Flight Options and … In explaining how Directional operates, Ricci says, “The first thing you have to understand is we are not a private equity fund. An estimated $2 Billion in revenue across this fleet of private aviation … Kenneth C. Ricci. Fending off more attempts egging him to acknowledge that maybe his contributions should have gained wider notoriety outside of aviation, Ricci deflects the plaudits to employees and management at Directional’s various companies. Kenneth Ricci is a 40-year aviation industry veteran who today is a Principal of Directional Aviation Capital which owns various aviation enterprises including Flexjet, Sentient Jet, PrivateFly, Tuvoli, Nextant Aerospace, Stonebriar Commercial Finance, Reva Air Ambulance, Corporate Wings, Simcom and Constant Aviation. We’re never going to have deeper pockets, and we don’t have the established customer base. I had a law degree. What It Is: Directional Aviation Capital is a private investment firm that funds its portfolio of business aviation companies, which contains such well-known brands as Flexjet, Sentient Jet, and Nextant … In 2015, he received the Aviation Week Laureate Award, recognizing his innovation in aircraft remanufacturing through Nextant Aerospace. I love the pilot training business, but if that’s your business and if you think there are (going to be) pilotless planes by the end of this decade, you have to be careful about that investment.”, Ricci jokes that his partner always asks him when he will retire, and he answers, “Just one more year.” However, the truth is Ricci probably will be around for quite awhile. Silvestro says fractional ownership is still as close as one can come to full ownership without the hassles. Directional’s experience in private aviation paid off with Nextant, which re-manufacturers jets, essentially taking used aircraft and making them into a new airplane it re-sells. He says the entire notion of jet cards is taking unused capacity from operators that don't have the resources to sell effectively to the public and create programs that enable customers to more easily, affordably and dependably access private jets starting at a mere six figures. Directional Aviation Capital is a private investment and holding company focused on the aviation sector. It’s an entrepreneurial outfit that mirrors both Ricci’s passion for aviation and the willingness to try things out. We provide an investment, and the companies operate independently,” says Ricci, adding, “I tend to group companies by their financing needs and the financing needs of a maintenance company are different than a flight company.” Directional does have a controlling stake in all but one, a finance company. “I haven’t accomplished that much,” he says. Therefore, you may not be familiar with Directional Aviation Capital and its portfolio of companies, including Flexjet, Sentient Jet, Skyjet, Flight Options, Nextant Aerospace, N1 Aviation, Sojourn Aviation, Air Services and Constant Aviation. remanufacturing private jets. He has received the Harvard Business School’s Dively Entrepreneurship Award. Directional Aviation Capital founder Ken Ricci invented fractional shares on pre-owned aircraft and... [+] remanufacturing private jets. }H0� >) �"�E���#��E���~ � = endstream endobj startxref 0 %%EOF 375 0 obj <>stream Despite Ricci’s history with fractional aviation companies, having started Flight Options, merging it with Raytheon Travel Air, selling it, buying it back, buying Flexjet from Bombardier and now winding down Flight Options, Ricci finds himself in a two-horse race with his old rival from central Ohio. You have CEOs of Fortune 500 companies and large organizations that aren’t really in the (same) office. One of the fastest growing companies in the segment at the same time was a Cleveland-based start-up called Flight Options, albeit a distant number two to the share seller from Columbus, Ohio. Directional Aviation Capital has announced it is purchasing Flexjet from Bombardier, Inc. I handled baggage and flew freight because I love (aviation). “It shows we care about the details,” says Ricci. In aviation, there are a lot of creative thinkers, so if we can harness those people and not put the typical private equity restraints on them, we’ve done a good job. These employ more than 2,000 people and generate more than $1.5 billion in sales … For instance, the directional aviation company said a few years ago, the company pulled in 1-2% from crypto payments for flights. These days most consumer press coverage of private aviation goes to anyone who compares what they are doing to Uber or Netflix. Today, everyone goes to work, but they don’t necessarily go to an office. Directional Aviation Capital (DAC)—the company headed by Kenn Ricci that owns Flight Options, Sentient Jet, Nextant Aerospace and Constant Aviation—announced this morning that it is … REVA has welcomed Directional Aviation and Flexjet, an American provider of sleek, super-modern private aircraft, as a proud new partner. We have a lawyer, two financial analysts and my partner (Michael Rossi). While NetJets markets a wide variety of card products, Flexjet only offers two, one for the Phenom 300 and the other on the Challenger 300, with no plans to expand. “If I was giving you a presentation on the aviation industry at the same time the guy next to me was giving you a presentation on the robotics industry, what would those curves look like? We’re investing our own money. Flexjet's Red Label fleet features highly tailored luxury interiors designed to mimic private jet... [+] ownership. Directional Aviation … One of Flexjet's more interesting initiatives is as launch fleet customer in Aerion’s attempt to create a next-generation supersonic airplane which would be specific to the private aviation market. Austin is a vital and thriving community. Yet it has separated itself from other jet card brokers. We had none three years ago. “Flight Options, before I bought Flexjet was 70% light jets. You know it’s going to happen. Sentient Jet provides Directional Aviation leadership in the jet card segment of private aviation. The next supersonic jet may well fly in the colors of Cleveland-based Flexjet. That was a big bet for Flexjet. So we said, ‘There is going to be margin degradation in that light jet category because if you are going to democratize aviation, you’re not going to democratize a ($60 million) Global Express. View Directional Aviation (www.directional.com) location in Ohio, United States , revenue, industry and description. It wasn’t his first big award either. They took that (high-end) corner and it is so successful.”. From Bombardier, there is the Global Express, in October from Gulfstream comes the G650 with the G500 being added to the Flexjet fleet next year. Lack of the spotlight doesn’t bother him. While it’s hard to say if the plane will ever get off the ground, Ricci thinks the announcement showed the Flexjet customer target that the company embraces innovation. We are airplanes and cash. “We saw a lot of capital was going into that (attempt to democratize the) market. You'll also find performance profiles of popular private jets, from turboprops King Air 350, Pilatus PC-12 and HondaJet to the Phenom 300, Challenger 300 and 350, Gulfstream G450, G550, G650, G700, Bombardier's popular Global Express family, the iconic Learjet, Aerion AS2 supersonic jet and S-76 helicopter used by both Queen Elizabeth and Donald Trump. I look at it that I’ve really gotten to do something I really wanted to do for my entire life.”. There are a lot of transactions going on at higher valuations than we’ve seen in a long time, and we’ll wait those out.” At the same time, companies within Directional are still making deals. The numbers jumped significantly in December 2020 to 12%, and … For instance, the directional aviation company said a few years ago, the company pulled in 1-2% from crypto payments for flights. Sentient is a broker, not owning or operating jets. While Sentient is part of the subsidiary that encompasses Flexjet, there is a clear delineation. On other Red Label aircraft, there are three different looks, something to break up the monotony of business jet beige. Past winners include Herb Kelleher, the founder of Southwest Airlines, Fred Smith, the FedEx founder, David Neeleman, founder of several airlines, including JetBlue, and Virgin's Sir Richard Branson, so you get the idea it is an honor reserved for heavy hitters. Silvestro says quite a few Flexjet fractional owners at one time or another owned their own aircraft, and like that the pilots in the Red Label fleet stick with a particular aircraft, something he and Ricci say implies an extra level of safety and scrutiny from the flight deck. Earlier this year, he received the "Lifetime Aviation Entrepreneur Award" at the 14th Annual Living Legends of Aviation Awards. The new owners are also placing the largest new-aircraft order in Flexjet’s history, valued at approximately $5.2 … Depending on how you answer that question will have a significant effect on how you make investments. So far the company has churned out over 70 private jets. “Although some questioned the future of Flexjet after it was purchased by Directional Aviation, so far it appears to be operating true to its Bombardier roots and serves as an important counterweight to the industry Goliath Netjets,” says James Butler, CEO of Shaircraft Solutions, a company that helps buyers figure out complicated private aviation contracts. When do you think you will see the first pilotless airplane with passengers on it? Headquartered in Cleveland, OH, and founded as an aviation holding company in 1981 by Kenn Ricci, Directional operates nine brands that provide a host of aviation services aggregating over … Directional’s experience in private aviation paid off with Nextant, which re-manufacturers jets, essentially taking used aircraft and making them into a new airplane it re-sells. ����"Yr�a:��o(řOx:̗Ql� �g��l�2�m!��p�PLi�D^�R�6�Q/h��6H�s��'\:������O���ǟIW�|��mc�ִS7��k^��9K���K���LV����XR�|�=�����Z�㖽�N8��'[�&6�Ho�%m�U:���g��Z���鄢�Jl�R� Its One Sky Flight operation comprises … While critics point to the fact that the fractional market has been stagnant for years, Ricci says that reflects private aviation in general. I always say we have a unique diversification strategy. Update was funded in part by the Federal Aviation Administration (FAA) and therefore complies ... • The potential for non-aviation revenue enhancing uses on golf course property to be vacated on ... 6. In 2007, I co-authored of “The Sky’s the Limit: Marketing to the New Jet Set.” In 2014 I wrote “23 Ways to Create More Sales Opportunities 25 Minutes,” and in 2016 I co-authored "Secrets of Selling to the Super Rich.” Verb named me as one of the Top 25 Digital Luxury Experts to follow. Specific areas of interest include fractional jet ownership, jet cards, charter, fleet management, remanufacturing, and aviation parts distribution. I’ve spent my working career in travel and luxury media, for 14 years at Travel Agent magazine, where I began as a reporter, then covered the airline industry as Aviation Editor and ended up rising to Group Publisher. Today he has built a $2.5 billion empire and is hoping to reap the rewards of timely acquisitions. I'm Editor-in-Chief of DG Amazing Experiences, a weekly e-newsletter for private jet owners and Private Jet Card Comparisons, a buyer's guide comparing over 250 jet card programs from major players like Flexjet, Jet Linx, NetJets, Sentient Jet, Wheels Up, VistaJet, and XO to newcomers like FlyExclusive and boutique brokers. With a specialized knowledge of the financial, operational and technical parametrics of the private aviation industry, Directional Aviation provides: Market positioning and operational models for the fractional aircraft industry; Strategic consolidation plans and revenue … Truth be told, Flexjet says the cards are really there as add-ons for its fractional owners who need extra transport for perhaps children or family members. Provide adequate directional … We stayed out of commercial aviation because we don’t know it. This website uses cookies to improve your experience while you navigate through the website. Directional Aviation now consists of around 13 companies (it depends on how you view each division). Collectively, the Directional Aviation companies currently employ more than 2,200 people; generate more than $1.5 billion in annual revenue; service private aviation needs in more than 70 countries around the world; and operate more than 175,000 flight hours annually. He says, “I told my son who just graduated from college I had the guts to do something I really love and it wasn’t an easy decision. Prior to his work with ICON, Michael served as the Chief Revenue Officer for a global private aviation company based in the Northeast as well as Vice President within the Directional Aviation portfolio of … “NetJets has a tremendous pedigree,” says Ricci. Keep an eye out for more similar activity. That doesn’t mean Directional is missing out on the jet card market. While NetJets sold slices in new jets, Flight Options pioneered selling pre-owned jets in the fractional model and grew to over $600 million in revenues in just four years. Today he has built a $2.5 billion empire and is hoping to reap the rewards of timely acquisitions. ", And big jets are coming in a big way. “It’s not a holding company from the standpoint we own all these sister companies. Find related and similar companies as well as employees by title and much more. When we put those two companies together and looked out into the future, we couldn’t find a democratization strategy, although we’re constantly paranoid about what it’s going to be,” he tells Forbes.com. �1�ц A7MS0M�u��U With NetJets and Flexjet the only two national providers of scale in the fractional space, Ricci doesn’t expect the duopoly will attract a major competitor. Number two, not being a fund, we don’t have a time limit. Directional Aviation has launched FXAIR, the newest member of its family of private jet travel providers, which will specialize in premium charter on-demand. It has increased the number of jet cards it sells through Sentient Jet to 6,000 since acquiring the company in 2012. We can react quickly to transactions. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as … “Twenty years ago everyone went to an office. h��RMhQ��f�?�CZW�lP��AJT=(E�ŋ �a=dkh5FQq�6���DCY����RDō��؃�X��P �zS���|��{�o 0��9HX7 ,8�½�^�2�ǃ�c��ݖ�+W�8.^�l_d?T��ء��d.c�}i ˸\��g0� For more private aviation and news on jet cards, private aviation memberships, and fractional ownership, visit Private Jet Card Comparisons' news updates. Opinions expressed by Forbes Contributors are their own. Flexjet bought FlairJet in the U.K. last year as part of its thrust to have more scale in Europe. © 2021 Forbes Media LLC. Ricci points out Directional is not your typical corporate umbrella. Collectively, the Directional Aviation companies "employ more than 2,200 people; generate more than $1.5 billion in annual revenue; service private aviation needs in more than 70 countries … Directional combines industry specific operational expertise with deployment of its … I write about private aviation and the business of luxury travel. Our collective success generates billions in tax revenue … That’s our total diversification.” From his office overlooking the tarmac at Cleveland’s Cuyahoga County Airport, he says, “At Directional there are five of us. Its CEO Andrew Collins says the only place Flexjet and Sentient work closely ongoing is when they have a customer whose needs can be served by some type of combination. It has a separate operations center, separate customer service teams and even an extensive best-in-class lifestyle program with perks that include free nights at luxury hotels, VIP entrance to big sporting events with a focus on horse racing, discounts on Roberto Coin jewelry and even $15,000 off a Richard Mille timepiece. FXAIR is headquartered in New York, New York, and is a member of the Directional Aviation family of companies. Headquartered in Cleveland, OH, and founded as an aviation holding company in 1981 by Kenn Ricci, Directional operates nine brands that provide a host of aviation services aggregating over $2.5 billion … h�bbd``b`I� �3�`fL�@�� $�DAb�A�� �1H�� �H ! Another place executives think they have an edge on their larger competitor is the way they approach the crowded jet card market. Directional Aviation ranked 11th on Crain's 2019 list of privately held companies, with 2018 revenue of $1.6 billion and 865 local employees. You'll also find a Deal Book, cataloging M&A activity and launches by key players. The alliance gives REVA the flexibility to pair one of its top … Despite tepid category growth, Ricci thinks Flexjet’s move upmarket has set the table to entice customers who in the past might have normally turned to NetJets or internally to a corporate flight department. It’s hard to make the case all-in for aviation,” he says. “The COVID-19 pandemic has accelerated change in a number of industries, including private aviation. Directional Aviation … Company Doubled 2020 Goal for Aviator Program and Increased Directional Aviation’s North American On-Demand Charter Revenue By 55% Bullish Outlook for 2021 Based on Pent-Up … Either way, it means you may not be familiar with Kenneth Ricci, the founder of Directional Aviation. I had an accounting degree, so there were lots of job opportunities in safe industries. Flexjet was Mid (size jets) and Super-Mid (jets) for the most part. In fact, the company has a pooling program called Versatility Plus enabling owners to sell or buy extra hours from each other. 345 0 obj <> endobj 366 0 obj <>/Filter/FlateDecode/ID[]/Index[345 31]/Info 344 0 R/Length 100/Prev 1351955/Root 346 0 R/Size 376/Type/XRef/W[1 2 1]>>stream The numbers jumped significantly in December 2020 to 12%, … Currently sitting on the board at Directional Aviation Capital, in spite of the private investment nature of the firm, the company is highly success and renown across the sector. On its large cabin aircraft, while owners get the same configuration across each jet type, each has its own unique finishes, including colored leather seats and designer carpets. There's a free guide explaining various options and even a guide for first-timers and specifically what you need to know before chartering. They are working, and their COO is in another place working, and the CFO is (based) in yet another place, and that’s not really a one aircraft, centralized solution.”. By staying in that area we are familiar with, there is hardly an aviation deal we don’t understand in three or four minutes because it’s an area that’s so close to us. Directional Aviation Capital is a private investment firm whose sole focus is private business aviation. We’re nimble and we can make decisions quickly. In other words, if Ricci had ever chosen to dress up as a wild turkey and run around the airport for Halloween or scale tall buildings in his native Cleveland, you might be more familiar with him. About. The visions are changing at a much faster pace. The launch was originally planned for later in 2020, but was brought forward with the rebounding demand for private aviation . If you start to think about when are we going to have planes without pilots, it doesn’t matter when. While privately held Directional doesn’t publish any numbers, Ricci says altogether, the empire is about $2.5 billion in sales with 3,000 employees. It has its own safety program to keep checks on operators closely modeled on the procedures and protocols that an operator would have. Red Label as Ricci describes it is the difference between a standard suite at your favorite Four Seasons hotel and the distinctive signature suites. Ricci says Nextant applied the same reverse engineering concept he had used at a different avionics company several decades earlier, but on a more massive scale. Directional Aviation Capital (DAC) is a private investment firm whose companies provide business aviation access and support services, including fractional ownership (Flexjet), jet cards (Sentient Jet), on-demand charter and booking-app technology (PrivateFly), remanufactured aircraft (Nextant), and aircraft refurbishment (Constant Aviation). For example, it already stores past trips and owners can book new trips with a couple keystrokes, however, he sees a future where instead of tapping the screen, you’ll simply say something like, “I want to go from Teterboro to Tampa next Wednesday at 4 p.m.”, Looking ahead Ricci says, “Like any industry, Directional has to keep reinventing itself, but first you have to have some vision for where aviation is going, and that’s become tougher than ever. In 2012 he was the youngest recipient of the William Ong Award for extraordinary achievement and extended meritorious service to the general aviation industry. A highly respected professional aviator, Ricci sees the great potential of the private aviation industry. In 2000, Ricci was honored as Ernst & Young Entrepreneur of Year. He founded Directional Aviation in 1981 with the acquisition of a small aircraft management company, … The smart thing is to have a revenue stream that aligns with the timeline of the aircraft’s financing. (Flexjet CEO Mike Silvestro and his team) took the only corner of the room NetJets would give them because NetJets is a behemoth. You may opt-out by. “If there is uberization going on, it’s in the large aircraft, not the small aircraft,” he says. During the late 1990s NetJets and its founder Richard Santulli, with the backing of Warren Buffett, became synonymous with fractional ownership, the hot category that was bringing private jet access to a broader, yet still Ultra High Net Worth market. That translates to the somewhat mundane, like its new app, which Ricci believes is just the start. And before you fly, find out what's an FBO. The third thing is being able to survive in this industry for 35 years, we’ve established some sense of financial discipline which is not always apparent in aviation. 15-year training outsourcing with Directional Aviation Capital, one of the largest, fastest growing, and most innovative corporate aviation service companies globally. In fact, Collins provides a forceful argument that Sentient, which claims to have invented the jet card the jet card, has done more to democratize the private aviation market than the Uber wannabes. All Rights Reserved, This is a BETA experience. FXAir, a premium on-demand charter provider launched by Directional Aviation six months ago, ended the year with more than 4,000 arranged charter flights that carried more than 8,000 … Father’s Day Gift Guide: The Best Overnight Bags For Dad, Why You Should Consider Booking A Hawaiian Villa For A Future Stay, The New Big 5: Wildlife Photography & Conservation, Top 5 Design Tips For Making Your Home Feel Like A Luxurious Hotel, Female Hospitality Business Owners Reveal Their Favorite Travel Memories, Laura Prepon Recalls The Strangest Interaction She Had On An Airplane, Vacation In Hawaii Like A Homeowner With Destination Residences Hawaii, 4 Things You Probably Didn't Know About Tequila, from Gulfstream comes the G650 with the G500.