A Flexjet Gulfstream G450 Airplane arrives at San Diego International Airport for landing in San Diego, California on 9 May 2025.
Kevin Carter | Getty Image News | Getty images
An investment group led by LVMH’s Private Equity Arm is buying 20% private jet company Flexjet, which marks the latest push by the luxury industry to expand the journey.
L Catterton, the private equity firm supported the French luxury legend LVMH, leading an investment of $ 800 million in Flexjet which will also include brand partnerships and cooperation. The investment group also includes KSL Capital Partners and Jabra Group’s associates. Flexjet will be controlled by the original company directive aviation capital.
The deal experiences the rapid expansion of the luxury industry in the economy as rich consumers increase their expenses on travel, food and special programs. LVMH acquired Hospitality Group Belmond at $ 3.2 billion in 2018, and is building its shaval blank and bulgari hotels and resort brands.
According to a report by Bain and Altagamma, the global sales of luxury goods declined by 2% to 363 billion euros last year, as the demand for General Z and Chinese consumers fell. However, luxury hospitality increased by 4%, while petty food and good food increased by 8%and sales of boats and private jets increased by 13%.
For Cleveland-based flexjet, the deal forms a relationship with the world’s largest luxury giants and portfolio of over 75 reputed brands, from Louis Wuiton and Dyer to Dom Perigan and Tiffany.
With the private-jet industry being rapidly competitive and dominating the industry leader Netzets, Flexjet is aimed at exceeding a special membership club, which offers luxury experiences and Bispoke services. Flexjet already has a partnership with Belmond, Yacht Maker Ferreti Group and Bentley Motors, who are collaborating on Jet interiors and curate events.
“We are trying to move Flexjet into an experienced role,” said Flexjet Chairman and Directive Aviation Principal Ken Rikki. “If you think about a luxury journey and where it is today, I keep thinking about a flexjet community. When you have an experience in a hotel, you get it for a week, and you find out what is that experience. But when you fly on a jet, it is four hours, five hours. So we make that flexet community?”
Rikki said that most of the deal’s income would go to expand and improve the infrastructure of the flaxjet. This involves purchasing large, long distance aircraft to fill the rapid growing demand for international travel. The company will also build its infrastructure abroad, with additional maintenance facilities and ground handling. And Flexjet will continue to add and training the flight crew through its special cabin attendant academy. About 25% income will be used to pay a particular dividend to shareholders.
Rikki stated that Flexjet was estimated to have an Ebitda of about $ 425 million this year, from $ 398 million in 2024 and more than doubled in 2020. According to the company, its fleet of 318 aircraft is expected to reach 340 by the end of 2025, and it has over 2,000 flexjet members, according to the company, partial and under the program on lease.
Rikki said that El Caterton approached Flexjet with a possible deal as the private equity firm wanted to be ahead of the changing definitions of luxury between Dhani.
“(El Cateron) presented us some ideas, where they look at the future of luxury,” Rikki said. “They basically see that the future luxury is time. And they see that in a private journey, you can regain time.”
Rikki said that the details of potential brand partnership or cooperation have been announced so far. But he quoted a model Flexjet’s partnership with Belmund, including special deal and enhanced migration at the company’s luxury hotels in Venice and Raveell, Italy; And Mallorca, Spain, as well as other places.
He said that the company’s Bespoke aircraft cabin, which has been designed after individually designed in the best hotels, would also continue a competitive advantage.
“When encountered with a Bihamth like Netjets, we don’t need to be the greatest,” he said. “We want to be a boutique.”
L is 40% under the ownership of the family office of LVMH and CEO Bernard Arnault. It manages $ 37 billion in equity capital among consumer brands BirconstockThorns and arrows.
“Is one of the history of Flexjet” in the history of Flexjet “” is one of anytime in search of considering innovation to fulfill the wishes of consumers within its unique and exciting market within a statement. “
