A FlexJetream G450 plane approaches San Diego International Airport for an landing on May 9, 2025 in San Diego, California.
Kevin Carter | Getty Images News | Getty images
An investment group led by Lvmh Private Equity Arm buys 20% of the flexjet private reaction company, marking the last push in the luxury industry to develop on travel.
L Catreton, the supported capital-investment company The French luxury giant LVMH, conducts an investment of $ 800 million in Flexjet which will also include brand partnerships and collaborations. The investment group also includes the affiliates of KSL Capital Partners and group J SAFRA. Flexjet will continue to be controlled by the parent company Directional Aviation Capital.
The agreement highlights the rapid expansion of the luxury industry in the economy of experience as rich consumers increase their spending on travel, catering and special events. LVMH acquired the Belmond hotel group in 2018 for 3.2 billion dollars, and built its brands Cheval Blanc and Bulgari Hotel and Resort.
Global sales of luxury products decreased by 2% last year to reach 363 billion euros, the demand of consumers of generation Z and Chinese, according to a bath report and Altagamma. Luxury hospitality, however, increased by 4%, while gastronomic food and gastronomy jumped by 8%and sales of yachts and private jets increased by 13%.
For Flexjet, based in Cleveland, the agreement creates a relationship with the largest luxury giant in the world and its portfolio of more than 75 coveted brands, from Louis Vuitton and Dior to Dom Pérignon and Tiffany.
The private jet industry becoming more and more competitive and dominated by the leader in net projects, Flexjet aims to look more like an exclusive membership club, offering luxury experiences and tailor -made services. Flexjet already has partnerships with Belmond, the manufacturer of Yachts Ferretti Group and Bentley Motors, collaborating on jet interiors and organized events.
“We tried to move Flexjet in an experiential role,” said Kenn Ricci, president of Flexjet and director of directional aviation. “If you think of luxury trips and where it is today, I continue to think of a flexible community.
Ricci said most products in the agreement are expanding and improving the Flexjet infrastructure. This includes the purchase of larger and long -range planes to meet the growing demand for international travel. The company will also accumulate its infrastructure abroad, with additional maintenance facilities and soil handling. And Flexjet will continue to add and train the flight crew thanks to its special cabin academy. About 25% of the products will be used to pay a special dividend to shareholders.
Ricci said Flexjet plans an EBITDA of around $ 425 million this year, compared to $ 398 million in 2024 and more than double levels in 2020. The company offers split property and rental options, as well as jet cards. Its fleet of 318 planes should reach 340 at the end of 2025, and it has more than 2,000 Flexjet members as part of the fraction and rental program, according to the company.
Ricci said that the CTERATTON had approached FlexJet with the potential agreement while the investment capital company seeks to stay ahead of the changing definitions of luxury among the rich.
“(L Catreton) presented us with some ideas on the place where they see the future of luxury,” said Ricci. “They essentially see that the luxury of the future is time. And they see that in private trips, you can recover time.”
Ricci said the details of potential brand partnerships or collaborations had not yet been announced. But he cited the Flexjet model partnership with Belmond, which includes special offers and improved stays in the luxury hotels of the company in Venice and Ravello, Italy; and Mallorca, Spain, as well as other places.
He said that tailor -made aircraft cabins, modeled after rooms designed individually in the best hotels, would also continue to be a competitive advantage.
“Faced with a giant like Netjet, we don’t have to be the greatest,” he said. “We want to be the shop.”
The Catreton belongs to 40% by LVMH and the Family Office of the CEO Bernard Arnault. It manages $ 37 billion in equity through consumption brands, especially BirkenstockThorne and Etro.
Scott Dahnke, a global CTG CTERATTON, said that in a press release from Flexjet history “, it was a question of never being installed in the pursuit of a thoughtful innovation to best respond to the desires of consumers within their single and exciting market”.