The alliance gives REVA the flexibility to pair one of its top … I love the pilot training business, but if that’s your business and if you think there are (going to be) pilotless planes by the end of this decade, you have to be careful about that investment.”, Ricci jokes that his partner always asks him when he will retire, and he answers, “Just one more year.” However, the truth is Ricci probably will be around for quite awhile. While NetJets sold slices in new jets, Flight Options pioneered selling pre-owned jets in the fractional model and grew to over $600 million in revenues in just four years. We’re investing our own money. Silvestro says quite a few Flexjet fractional owners at one time or another owned their own aircraft, and like that the pilots in the Red Label fleet stick with a particular aircraft, something he and Ricci say implies an extra level of safety and scrutiny from the flight deck. I’ve spent my working career in travel and luxury media, for 14 years at Travel Agent magazine, where I began as a reporter, then covered the airline industry as Aviation Editor and ended up rising to Group Publisher. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as … The launch was originally planned for later in 2020, but was brought forward with the rebounding demand for private aviation . I handled baggage and flew freight because I love (aviation). Another place executives think they have an edge on their larger competitor is the way they approach the crowded jet card market. Today, everyone goes to work, but they don’t necessarily go to an office. The smart thing is to have a revenue stream that aligns with the timeline of the aircraft’s financing. While Sentient is part of the subsidiary that encompasses Flexjet, there is a clear delineation. Company Doubled 2020 Goal for Aviator Program and Increased Directional Aviation’s North American On-Demand Charter Revenue By 55% Bullish Outlook for 2021 Based on Pent-Up … 345 0 obj <> endobj 366 0 obj <>/Filter/FlateDecode/ID[]/Index[345 31]/Info 344 0 R/Length 100/Prev 1351955/Root 346 0 R/Size 376/Type/XRef/W[1 2 1]>>stream These employ more than 2,000 people and generate more than $1.5 billion in sales … In terms of further acquisitions, Ricci says, “There are always opportunities. Aviation is full of romantics.”. One of the key responsibilities of the Austin City Manager is planning and implementing the City’s annual budget. Directional Aviation ranked 11th on Crain's 2019 list of privately held companies, with 2018 revenue of $1.6 billion and 865 local employees. �1�ц A7MS0M�u��U We stayed out of commercial aviation because we don’t know it. For example, it already stores past trips and owners can book new trips with a couple keystrokes, however, he sees a future where instead of tapping the screen, you’ll simply say something like, “I want to go from Teterboro to Tampa next Wednesday at 4 p.m.”, Looking ahead Ricci says, “Like any industry, Directional has to keep reinventing itself, but first you have to have some vision for where aviation is going, and that’s become tougher than ever. Number two, not being a fund, we don’t have a time limit. We provide an investment, and the companies operate independently,” says Ricci, adding, “I tend to group companies by their financing needs and the financing needs of a maintenance company are different than a flight company.” Directional does have a controlling stake in all but one, a finance company. Keep an eye out for more similar activity. Truth be told, Flexjet says the cards are really there as add-ons for its fractional owners who need extra transport for perhaps children or family members. Depending on how you answer that question will have a significant effect on how you make investments. We can react quickly to transactions. That’s our total diversification.” From his office overlooking the tarmac at Cleveland’s Cuyahoga County Airport, he says, “At Directional there are five of us. Past winners include Herb Kelleher, the founder of Southwest Airlines, Fred Smith, the FedEx founder, David Neeleman, founder of several airlines, including JetBlue, and Virgin's Sir Richard Branson, so you get the idea it is an honor reserved for heavy hitters. We have a lawyer, two financial analysts and my partner (Michael Rossi). They took that (high-end) corner and it is so successful.”. I think the Flexjet decision to come up with Red Label was brilliant. While critics point to the fact that the fractional market has been stagnant for years, Ricci says that reflects private aviation in general. There are a lot of transactions going on at higher valuations than we’ve seen in a long time, and we’ll wait those out.” At the same time, companies within Directional are still making deals. Our collective success generates billions in tax revenue … Specific areas of interest include fractional jet ownership, jet cards, charter, fleet management, remanufacturing, and aviation parts distribution. Austin is a vital and thriving community. With NetJets and Flexjet the only two national providers of scale in the fractional space, Ricci doesn’t expect the duopoly will attract a major competitor. Prior to his work with ICON, Michael served as the Chief Revenue Officer for a global private aviation company based in the Northeast as well as Vice President within the Directional Aviation portfolio of … He has received the Harvard Business School’s Dively Entrepreneurship Award. Directional’s experience in private aviation paid off with Nextant, which re-manufacturers jets, essentially taking used aircraft and making them into a new airplane it re-sells. h�bbd``b`I� �3�`fL�@�� $�DAb�A�� �1H�� �H ! Directional Aviation … Directional Aviation … From Bombardier, there is the Global Express, in October from Gulfstream comes the G650 with the G500 being added to the Flexjet fleet next year. Currently sitting on the board at Directional Aviation Capital, in spite of the private investment nature of the firm, the company is highly success and renown across the sector. “It shows we care about the details,” says Ricci.