How would you describe 2025 for FlyExclusive?
It was a truly transformational year for us. While we haven’t yet released earnings, the business has changed dramatically over the last 18 months. We removed non-conforming aircraft, improved execution across the organization, and fundamentally reshaped how we operate. We’re very excited about reporting our fourth‑quarter and full‑year results and feel extremely well-positioned for 2026.

You reduced your fleet while increasing flying hours. How did you achieve that?

We reduced the fleet by roughly 15% while increasing flight hours by about 20%. That’s an execution story we’re very proud of. Flying more hours on fewer airplanes comes down to utilization, discipline, and having the right aircraft in the fleet.

We didn’t hire more people to do that. Instead, we aligned staffing levels and SG&A per aircraft with their target levels. It was a year of very strong execution across the entire organization.

The Challenger 350 seems central to your fleet strategy. Why has it been so successful?

It’s been an amazing platform for us. We currently have nine Challenger 350s, with two more arriving shortly, and expect to have 12 by the end of the first quarter.

Reliability is orders of magnitude better than what we achieved in the past. Customers love the aircraft, demand is strong, and it performs consistently. When an airplane doesn’t break, everything else becomes easier—scheduling, utilization, and customer satisfaction.

Are you deliberately focusing on fewer aircraft types?

Our goal is to utilize every airplane at the highest possible level. Reliability is what enables that, and that’s why the Challenger works so well for us.

We’re continuing to remove underperforming super‑mid aircraft, including Citation Xs and Sovereigns, and replacing them with Challengers. The CJ3 remains a strong platform for us in the light jet category, and newer Textron Aviation aircraft, such as the XLS and XL, have also performed very well.

How is demand trending across fractional, jet card, and your charter operations?

Demand is strong across all segments. Some variation depends on aircraft availability, but overall demand exceeds our capacity to supply.

On the wholesale charter side alone, we see hundreds of trip requests per day that we simply can’t fly. The business really comes down to whether you can add airplanes and keep them reliable. Demand is not the issue.

Are you seeing any regional shifts in demand?

Our airplanes aren’t regionally based by design—they move around the country based on demand. We’re rarely in a situation where we can’t reach any part of the U.S. within about an hour.

That said, traditional business centers remain strong—Dallas, South Florida, and the Northeast—and we see strong seasonal activity in ski destinations. The West Coast, especially Los Angeles, is also consistently busy.

What do you see as the main driver behind sustained post-pandemic demand?

Once people experience private aviation, it’s very hard to go back. The convenience, privacy, security, schedule control, and ability to fly direct create a significant advantage over commercial travel.

COVID introduced many people to private aviation who might not have tried it otherwise. A meaningful portion of those customers have stayed, which continues to support strong demand.

How much does overall market growth factor into your strategy?

It really doesn’t. Our business plan has never been built around total addressable market growth. We focus on taking market share from other operators.

We do that through vertical integration—maintenance, paint, interiors, and mobile service units across the country. We’re delivering a better product. If the market grows, that’s great, but we’re confident in our strategy regardless.

What about the fleet scale and efficiency? Is there a minimum fleet size at which efficiencies begin to appear?

We’ve always believed scale starts to matter around 15 to 20 aircraft of a given type. That’s where training efficiency, parts inventory and buying power really improve.

If 20% of your fleet is down for maintenance, losing one aircraft hurts a lot more when you only have five than when you have 20. Scale is essential for this business to work.

FlyExclusive have been introducing a large number of pre-owned Challenger 350s. Why do you favour these pre-owned super-midsize jets over new aircraft?

For us, the maths makes a lot of sense. The first owner of these excellent jets has taken the biggest depreciation hit. If I can buy an aircraft with 1,000 to 1,500 hours and bring it into our shop for brand‑new paint and interior, I end up with an airplane that looks better than many new ones.

All these aircraft are built on the same type certificate. If two airplanes have similar total time and identical upgrades, it’s very hard to tell which one is older.

How do you price fractional shares on these pre-owned aircraft?

Each aircraft is priced individually based on acquisition cost, hours, history, and upgrades. Compared to a new Challenger 350, a pre-owned Challenger 350 fractional share can be about 20% less expensive while delivering the same operating experience and service level. That’s where our vertical integration really creates value.

Do you provide maintenance services for fleets other than your own?

Yes, absolutely. More than half of our maintenance capability supports third-party customers. We’re also expanding our mobile service unit network nationwide.

We see MRO as a major growth opportunity going forward, not just for our fleet but for the broader industry.

Parts availability and consequent maintenance downtime have been a big challenge for the industry. How significant are parts shortages today?

Parts are always a challenge, and they directly impact downtime. Our goal is to return our dispatch availability to the low 80% range, but today we’re closer to mid-60 %.

Every 1% improvement in dispatch availability adds about $3 million to our bottom line. That’s why fleet scale and parts inventory matter so much.

Have rising airline salaries affected pilot availability?

Pilot compensation has increased significantly over the last year to remain competitive with the airlines. That said, we still see healthy availability and nothing that we believe the industry can’t sustain.

How important is Starlink connectivity to your customers?

It’s a complete game changer. Customers are unbelievably excited about it—it’s the biggest buzz in the industry right now.

What’s interesting is that when we upgrade customers from a light jet to a mid-size jet, they’re sometimes unhappy if the larger aircraft doesn’t have Starlink. Connectivity has become essential.

How long will it take to equip the entire fleet with Starlink?

It could take most of the year. Each installation takes about a week, and with nearly 100 airplanes, that’s a lot of work.

All of our aircraft currently have Gogo connectivity, but Starlink is currently leading the market. We believe it’s a 10-year-plus product, especially given how frequently the software is updated.