March 14, 2017: VistaJet, the first and only global aviation company, announced that it has safely performed over 100,000 flights in its history, recording significant growth as corporations and UHNWIs continue using business jets to travel the world.

In the first nine months of 2016, 7.7% fewer new aircraft were delivered year-on-year. At the same time, VistaJet took on 15 brand new business jets in 2016 to meet increasing demand, equaling 26% fleet growth. The company has now connected 250,000 passengers to over 1,600 airports in 187 countries.

The company forecasts this growth to continue as a rising number of millennials enter the business aviation market and look to participate in the shared economy trend rather than own a depreciating asset.

Among its new customers were principals as young as 25, and major technology companies purchasing 400+ flight hours for their executives to fly worldwide. The firm reports that 40% of its new business in 2016 came from customers moving away from fractional or full aircraft ownership in favour of anytime access to its global fleet.

VistaJet Program customers accounted for the majority of the company’s business in 2016. The VistaJet Program is a bespoke solution aimed at individuals and corporations flying between 50 and 1,000+ hours per year, offering guaranteed access anytime and anywhere to a global fleet of silver and red branded aircraft.

As part of its 71 business jets, VistaJet now also counts the largest privately owned Global 6000 and Challenger 350 fleet in the industry. In 2016, the company moved its global headquarters to growing European business hub, Malta, whilst expanding its offices in key cities such as Los Angeles, New York City, Hong Kong, Seoul and Lisbon.

Chairman and Founder Thomas Flohr said, “What we’re seeing is that due to broader uncertainty and changing attitudes to ownership, while entrepreneurs and corporations want the flexibility and convenience of using a business aircraft, they don’t want the asset risk or the up-front costs. Celebrating our 100,000th flight is a real indication that customers have found the answers they are looking for in our business model. We have invested in our fleet, our people, and our global infrastructure, to offer an unmatched service. We pride ourselves on providing the support and resources companies need to do business. Whether that is organising complex trips to multiple, remote destinations or arranging for meetings to take place in-flight, regardless of where in the world they are, we are there for our customers when they need us.”

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However, the deal may take time to come through as there are objections from various quarters

June 16, 2016: Iran has finalised a deal with Boeing to buy passenger planes from the US aircraft manufacturer as part of an ongoing effort to upgrade its civil aircraft fleet.

Though the deal has not been officially announced, it is being said that the plan is to buy around 100 aircraft.

Binit Somaia, director (South Asia) at Centre for Asia Pacific Aviation (CAPA), a consulting and research practice firm, says, “The deal appears to be approaching an advanced stage but given the sensitivity around this transaction, its finalisation will only be known once there is an official announcement.”

According to Paul Lyons, strategy director, International Bureau of Aviation (IBA), says that while the announcement of an intention to enter a deal is likely soon, it will probably take longer to finalise an agreement similar to previously announced deals with Airbus for 118 aircraft and ATR for 40 aircraft.

Somaia expects Iran to split its aircraft order fairly between Airbus and Boeing. Since the order with Airbus is for 118 aircraft, Boeing could expect to receive a similar order, subject to a mix of wide body and narrow body aircraft, states Somaia.

If completed, the agreement would potentially be worth billions of dollars to Boeing and amount to the most prominent commercial transaction between an American company and Iran.

The obstacles

However, there are obstacles. Iran’s supreme leader, Ayatollah Ali Khamenei has often described the US as a threat to his country. Even within the US, many lawmakers are opposed to any kind of reconciliation with Iran.

Additionally, there is a ban on use of dollars for trade with Iran. “Although aircraft transactions are generally denominated in US dollars, due to the restrictions which apply to the use of the currency, Boeing may make an exception and contract in Euros,” adds Somaia.

The news has prompted strong objection from Congress. “To say we have national security concerns would be an understatement,” US Rep. Peter J. Roskam said. “Boeing and the Islamic Republic should know the US Congress will not look favourably upon any deal that jeopardises the safety and security of the American people.”

Roskam expressed concerns over an “iconic American company doing business with terrorism’s central bank”.

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