Flexjet pulls out of planned public launch

Flexjet has terminated its agreement with Horizon Acquisition Corporation II and will remain a private company.

The fractional jet business revealed in October 2022 its intention to merge with Horizon, a special purpose acquisition company (SPAC), to go public and be listed on the New York Stock Exchange. The deal was set to close in the second quarter (Q2) of this year.

Flexjet said its “strong financial performance will allow for continued opportunistic acquisitions, as well as strategic growth in infrastructure, fleet and geographic expansion without the need for public capital”. However, it didn’t rule out going public in the future.

Kenn Ricci, chairman, Flexjet said: “In 2022, we outperformed the financial targets provided at the start of the SPAC transaction and continue to deliver significant cash flows and compelling year-over-year growth. Our position of strength gives us the flexibility to access the public markets at the appropriate time.”

Ricci said that there will be “no impact” on the company’s recent growth initiatives and added the decision is in the best interests everyone involved.

“Changing course mid-stream is not the easiest path, but I have always respected our team for having the discipline to do just that,” he added. “We will remain nimble and alter course if necessary to ensure we are always doing what is truly in the best interest of our business.”

Todd Boehly, chairman, CEO and CFO, Horizon said: “We have enjoyed and will continue our long partnership with Flexjet’s management team and respect their decision. We are glad that Flexjet and Horizon were able to agree to the termination in a manner that is fair.”

When the SPAC deal was first announced, Ricci said Flexjet had “never been in a better position to find opportunities to grow”.

In February, Flexjet acquired MRO services provider Constant Aviation and plans to acquire further companies throughout the year.

Recently, Wheels Up, which went public through a SPAC in 2021, reported adjusted net losses of $555m, more than double the loss of $197m it reported in 2021. 

Flexjet’s 2023 growth plan – at a glance

• Adding 37 aircraft to bring total fleet to 270
• Developing new Cleveland headquarters
• Hiring 388 flight crews
• Hiring 338 aircraft maintenance technicians
• Continuing acquisitions