New VLJ Company Launched

The future of flying is smaller planes, according to Venture Alliance Network, which plans to launch a Very Light Jet fixed base operation business shortly. The company is soliciting capital and recently partnered with a venture capital firm to raise funds to acquire small FBOs at outlying airports. The company, it said, is taking part in the Very Light Jet industry expansion, “a service segment that is poised to grow faster than any other aircraft segment,” it said.
It is focusing on second and third tier markets, hoping to avoid competition from larger, more powerful FBOs. Venture Alliance will be offering concierge, customer lounges, fuel, ground transportation, and maintenance Coordination at all its locations. By offering more services than other FBOs, its is able to take advantage of more revenue opportunities, it said.
“The private jet market, or more specifically the Very Light Jet (VLJ) market, has been growing in popularity in the United States ever since the attacks on 9/11,” said Richard C. Young, senior investment director for the company in its solicitation. “This growing trend in light jets has led to increased demand for fuel and service needs at these smaller airports. This is where this aviation company is taking part in this growing market. They have experience in acquiring and managing FBOs. FBO Operations typically enjoy 50-60 percent gross margins. The licenses for these FBO operations are generally long-term and often limited to one operator per facility in the company's target market. This means that faster acquisition of other FBOs will lead to a better long-term position. There’s relatively low selling, general, and administrative expense for this type of business. And the additional leverage with suppliers from multiple locations translates into higher profit margins.”
The company is targeting investors with a minimum of $50,000 liquid capital available within the next 30 days, saying its team includes members with previous experience in the including the unnamed CEO and treasurer, who both have a background in consolidating FOB businesses and taking them public. Other executives have experience in the financial industry, including their CFO, who was a former auditor for PriceWaterhouse.