AdvantEdge: Jet Edge and KKR agree $150m investment

Yves Le Marquand

Jet Edge International has agreed that KKR will provide up to $150m to the US-based private aviation company in large part to support its new AdvantEdge charter management system.

The platform, due to be rolled out nationwide imminently, aims to improve the inefficiencies found in the industry’s existing ownership and charter management procedures for whole ownership of large cabin and super-midsize aircraft, said Jet Edge. The credit facility will be paid via funds and accounts managed by KKR.

“Jet Edge is thrilled to partner with KKR as we continue to strengthen and grow our platform,” said Bill Papariella, CEO of Jet Edge. “As part of our continued focus on delivering innovative solutions to our clients, we are excited to officially unveil the Jet Edge AdvantEdge programme – the first whole aircraft ownership solution that is a true alternative to both fractional ownership and the antiquated traditional aircraft management model. Never before has the plane ownership experience been as forecastable and predictable as it is with AdvantEdge.”

The programme works with aircraft owners to schedule out predetermined, dedicated blocks of charter hours in three tiers for each enrolled aircraft. This is reported to result in “predictable revenues and schedules for the first time in the industry”.

Another benefit of AdvantEdge is that owners will have preferred access to the Jet Edge aircraft network via its reserve charter membership programme, claims the company. If an AdvantEdge owner’s aircraft is booked for charter for example, the reserve programme provides access to a fleet of aircraft.

The financing from KKR will also be used to support growth elsewhere in the business, including developing technology to support clients and accelerating the progress of business lines including aircraft sales division, Jet Edge Partners.

“Jet Edge has built a reputation as a best-in-class, scaled operator in the private aviation market,” said Dan Pietrzak, partner at KKR. “This transaction continues our asset-based finance strategy of providing long-term funding to leaders in the global aviation sector so they can invest in their businesses and capture opportunities as the market recovers.”

As well as KKR putting $150m towards the platform responsible for digitising the management of the largest fleet of managed Challenger and Gulfstream aircraft in the US, yesterday (June 7th), KKR and Macquarie Infrastructure Corporation (MIC) announced they had signed a definitive agreement for MIC to sell its Atlantic Aviation business to KKR. The deal worth $4.475bn in cash and assumed debt and reorganisation obligations will see KKR also take over one of the largest FBO networks in the US.

AdvantEdge programme tiers:

EDGE 250+

  • 14 weeks
  • 250+ charter hours

EDGE 500+

  • 28 weeks
  • 500+ charter hours

EDGE 900

  • 52 weeks
  • 900+ charter hours

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