2021 was yet another record-breaking year for Vista, with sales of the Group’s subscription solutions and services increasing 59%. As the largest on demand charter provider by hours flown, the Group has seen a rapid increase year-on-year of 64% in global flight hours across its operating companies, representing a 57% rise on pre-pandemic figures. Vista already serves more than half of the top 10 largest global companies, with VistaJet and XO reaching over 350,000 of the most desirable clients around the world.
This strong performance is coupled with record-breaking flying hours across both brands, with VistaJet selling over 22,000 annual subscription hours in 2021 — an increase of 90% compared with 2020 figures — and number of Members increasing year-on-year globally by 26%, continuing to convert aircraft ownership to the brand’s subscription model. Additionally, a massive influx of business travelers choosing private aviation over commercial flying as uncertainty remains was seen across the Group. XO Deposit Members increased 68% in 2021 and there was a huge increase in technology adoption by Members, with 84% of flights generated through XO’s marketplace.
2022 has continued apace. On January 20, 2022 Vista successfully priced an offering of $1 billion of Senior Unsecured Notes due 2030 by two of its subsidiaries, VistaJet Malta Finance P.L.C and XO Management Holding, Inc.*. The offering was more than five times oversubscribed with exceptional demand from investors — validating the strength of Vista’s business model. The transaction has raised additional liquidity while simultaneously substantially reducing Vista’s cost of borrowing relative to its existing Senior Notes.
“2021 has been an incredibly strong year for Vista and we have delivered all-time record-breaking figures as a result of the huge demand for our subscription, Membership and On Demand offerings. There is clearly a paradigm shift in the global client’s view of private aviation and Vista’s world-leading position has enabled clients across the globe to experience its benefits as a critical mobility solution. Vista’s shared economy, asset light and subscription strategy is accelerating this trend.
We are seeing contract sizes grow significantly across both VistaJet and XO and we are working around the clock to ensure we have necessary infrastructure and capabilities in place to ensure the complete flexibility and diversification of our services in the most sustainable way.
We have added over 30 aircraft during the year, strengthening Vista’s over 200-strong fleet offering. Having a fleet of Global 7500 now fully operational has been a game-changing moment since its launch in 2021, and we will build on its success by adding even more new Global 7500 aircraft to strengthen our global offering by the end of 2022.
The accelerated completion and upsizing of our unsecured bond is transformational, demonstrating the clear and strong investor confidence in Vista and providing us with a strong platform to deliver our exciting vision and ambitions.
We are continuing to grow as a leader in the business aviation world, by evolving and innovating every aspect of our services to provide the most advanced flying solutions at the very best value to our rapidly growing members’ base. This is only possible thanks to our expanding team of dedicated and passionate colleagues with hundreds more aviation experts helping to deliver our services to the incoming demand during 2021. We are best placed in the industry to capture new opportunities and we expect strong business momentum and sustainable growth throughout 2022 as we remain extremely confident about the future.”Thomas Flohr, Vista’s Founder and Chairman
The continued positive outlook and the long-term stability provided by its membership business model provides Vista with certainty to invest in its services as it continues to distinguish itself as the leading global luxury offering in the market.
Vista remains fully committed to constantly upgrade its services across its entire fleet, ensuring Members have the most unparalleled in-flight experience. The refurbishment of all VistaJet Global and Challenger aircraft is expected to complete by the end of 2022.
The Group recognizes the importance of acting now in the fight against climate change and continued to make significant progress against its strategic sustainability objectives throughout 2021. VistaJet is proud to have been able offer global access to Sustainable Aviation Fuel to all its clients and it remains confident in becoming the first in the industry to achieve carbon neutrality by 2025.
Demand for private aviation is thriving and Vista does not expect this to change for at least the next 12 to 18 months. The Group continues to capitalize on the gaps within the market — both organically and by adding specialist expertise into the Vista universe as demonstrated by the successful integration with Apollo Jets, Talon Air and Red Wing Aviation.
2021 has not been without its challenges, as the global industry continues to face ongoing global supply chains challenges. Vista remains the only group with the global infrastructure and scale, along with the right balance of solutions and global network of partners, to support Members and corporations across the world anywhere and anytime.
* The offering is expected to close on or around January 31, 2022, subject to customary closing conditions. Proceeds of the offering will be used to redeem Vista’s existing Senior Notes due 2024 and pay fees and expenses related to the offering. Remaining net proceeds will be used for general corporate purposes and to provide Vista with additional liquidity. BofA Securities, Inc. and Jefferies LLC acted as Joint Physical Book-Running Managers, with Barclays and Credit Suisse as Co-Managers. Latham & Watkins LLP acted as legal counsel for Vista.