Zinger Key Points
- Volato Group is transferring fleet operations to flyExclusive, expecting significant cost savings and focus on growth areas.
- The partnership could increase Vaunt’s flight inventory by up to 500%, enhancing private aviation services for both companies.
- Volato and flyExclusive remain in discussions about a potential merger.
- Discover Fast-Growing Stocks Every Month
Volato Group, Inc. SOAR shares are jumping premarket Thursday after the company disclosed an agreement with flyExclusive, Inc. FLYX to transition the management of its fleet operations to flyExclusive.
As per the Aircraft Management Services Agreement (AMS), flyExclusive will assume full responsibility for operating Volato’s fleet, encompassing both revenue and expenses.
This move is expected to yield significant cost savings for Volato and allow the company to concentrate on its growth areas, including aircraft sales and proprietary software.
This transition will enable Volato to lower its cost base by shifting operational duties to flyExclusive, which expects the fleet to be profitable under its management.
Volato will continue acquiring new HondaJets and Gulfstream G280s, which will join flyExclusive’s managed fleet, letting Volato benefit from aircraft sales while avoiding operational costs. It will also earn revenue from its Vaunt program.
FlyExclusive will add some of its empty-leg flights to Vaunt, potentially increasing the inventory by up to 500%.
Additionally, Volato and flyExclusive are considering a merger to strengthen their position in private aviation.
Matt Liotta, CEO of Volato, said, “By shifting fleet operations to flyExclusive, we reduce our operational costs while continuing to focus on delivering value through our aircraft sales and expanding our software solutions, such as the Vaunt empty leg program.”
Price Action: SOAR shares are up 16.5% at $0.4871 premarket at the last check Thursday.
Photo via Shutterstock
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Don’t miss the opportunity to dominate in a volatile market at the Benzinga SmallCAP Conference on Oct. 9-10 at the Chicago Marriott Downtown Magnificent Mile. Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you’re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today!
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
