Volato Lays Off Employees During Transition

The fractional charter jet operator has entered into an aircraft management services agreement with its competitor flyExclusive.

Tuesday, September 03, 2024 at 01:54 PM ET

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The aircraft management services agreement signed by both companies includes an option for Volato to merge into a wholly owned subsidiary of flyExclusive. [Courtesy: Volato]

Key Takeaways:

Financially troubled Volato has entered an Aircraft Management Services (AMS) agreement with competitor flyExclusive to manage its fleet and customer operations.
The AMS includes an option for Volato to merge into or be acquired by flyExclusive within one year from the agreement date.
Under the deal, flyExclusive will manage Volato's flight operations, sales, and customer base, expecting to significantly boost its direct-to-customer business and generate approximately $75 million in new revenue.
Volato views this as a strategic move to improve operational efficiency, reduce costs, and strengthen its market position following recent layoffs and financial disclosures.

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Three weeks after disclosing its troubling quarterly financial report, fractional ownership charter jet operator Volato (NYSE:SOAR) has entered into an aircraft management services agreement (AMS) with competitor flyExclusive (NYSE: FLYX).

In a SEC filing on Tuesday morning, the AMS includes an option for Volato to merge into a wholly owned subsidiary of flyExclusive. This option expires one year from the date of the agreement and allows an option for flyExclusive to purchase Volato during that time.

Caleb Revill

Caleb Revill is a journalist, writer and lifelong learner working as a Junior Writer for Firecrown. When he isn't tackling breaking news, Caleb is on the lookout for fascinating feature stories.