In order to meet its digitisation strategy, VistaJet has recently acquired JetSmarter. The innovative marketplace technology has already been downloaded more than two million times, and the acquisition is set to benefit both VistaJet and existing JetSmarter users.
So, what exactly is JetSmarter and why is this acquisition important?
What is JetSmarter?
JetSmarter is an online charter marketplace, based in the US. It was founded in 2012 and its value was estimated to be a staggering $1.6 billion in 2016. However, in recent years the company has gone through some tough times, significantly decreasing its value. There were even suggestions that the company could be sold for as little as $20 million.
Figures regarding how much the acquisition is costing haven’t been released. However, it is thought that the deal will prove to be a step forward for VistaJet; particularly in its bid to become more digitalised.
Understanding the acquisition
The acquisition involves Vista Global, built around VistaJet, and JetSmarter. VistaJet is expanding due to an increase in demand over recent years. The improved cost effectiveness to charter private aircraft has made it a more popular choice for business travellers, as well as for those who don’t want to pay to own their own jet.
The purchase of the company includes an equity swap, which means JetSmarter investors such as Jefferies Financial and Clearlake Capital will become stakeholders in Vista Global. VistaJet has a total of over 70 corporate aircrafts which customers can book for individual trips. Interestingly, the company also purchased XOJET from TPG, a private equity firm, last year. This gave VistaJet access to a fleet of smaller aircraft.
What benefits will the acquisition provide?
The hope is that the acquisition of JetSmarter will help to drive more bookings on its Bombardier aircraft fleet. They will be able to provide a seamless booking service, improving its speed and simplicity. This will prove extremely useful for the 150,000 passengers who travel via Vista Global each year.
The company is aiming to digitalise the entirety of private aviation chartering. The acquisition is due to be finalised in the second quarter of 2019. It is an important milestone for VistaJet, and the first time, passengers will be able to book private jet charter instantly, allowing them to fly anywhere, at any time. This acquisition is exciting news for passengers who want to book private jet charter online. It is also set to accelerate Vista Global’s digitalisation strategy, helping it to expand and offer an industry-leading service. Once the acquisition is complete, Vista Global will offer one of the largest number of services, along with advanced solutions in the private aviation sector.
