Fast-Growing Verijet Scraps Plans To Go Public Via SPAC Merger

Verijet, a start-up operator of small private jets, has scrapped plans to go public via a SPAC merger and will pursue a private equity investment instead. The move comes after its partner, New Vista Acquisition Corp., led by former Boeing CEO Dennis Muilenburg, decided to wind down the special purpose company.

The pair had signed a non-binding letter of intent for a business combination earlier this month. However, the SPAC was facing a deadline to extend itself with a vote scheduled for Feb. 10. It was then delayed five days, and yesterday, instead of announcing results, New Vista said it planned to liquidate.

The proposed deal would have made Verijet the third private jet flight provider recently announcing intentions to go public. Directional Aviation’s Flexjet and FlyExclusive, two of the largest U.S. providers, have plans to go public via SPAC mergers this year. They follow Wheels Up Experience and Blade Air Mobility which went public in 2021.

Verijet now expects to fund growth from a private equity investment by New Vista Capital, with Muilenburg tapped to join its board, according to the private jet company’s Founder and CEO Richard Kane.

After starting flights in 2020, the Miami, Florida-based charter operator ranked in 2022 as the 30^th largest U.S. operator based on charter and fractional flight hours.

It recently added a service area for flights within 600 nautical miles of Fort Worth, Texas. Customers don’t pay repositioning fees for flights within that zone.

After launching similarly from Orlando, Florida, Verijet has added service areas within 600 nautical miles of Santa Maria, California and White Plains, New York.

Verijet uses the Cirrus Vision Jet, a very light jet with a single engine. The high-tech airplane is known for the ability to land itself with the touch of a button. Since the aircraft can be flown by a single pilot, the feature is designed to be used by passengers if the pilot becomes disabled inflight.

Verijet customers can pay extra and opt for a second pilot, something Kane says some customers do initially, but after a few flights, they decide to save the money and sit in the front seat next to the pilot.

Kane has previously said he wants to expand in the U.S. and Europe and hopes to have over 100 of the Vision Jets flying in the next several years.

While the hourly cost to charter a Vision Jet at around $4,000 per hour is about half of the current price for larger light jets like the top-selling Embraer Phenom 300, depending on configuration, it can only seat three to five passengers (compared to six to eight for most light jets). It’s also slower and it doesn’t have a toilet.

However, it is well suited for flights between small airports where there is little or no direct service and would require either a connection via a big airline hub or a long multiple hours’ drive.

So far, Kane says Verijet has had no problem attracting customers to its jet card. It has 22 members at the top level, which means buying 100 hours of flight time, and another 120 members equally split between the 50-and-25-hour cards. When it recently gave members the opportunity to renew before a rate hike, Kane says there was 100% uptake.

Verijet currently has 19 aircraft in its fleet. New Vista had raised $276 million for its SPAC before announcing the liquidation.