Private aviation service Flyte plans to scoop up assets from the now-bankrupt charter carrier Verijet as it looks to expand its reach.
“We’re planning on purchasing whatever is available,” Jeremy Frommer, Flyte’s founder and the CEO of Flyte’s parent company Creatd, told FLYING on Wednesday. “We’re the most logical buyer.”
Verijet, which filed for Chapter 7 bankruptcy last week, leaves behind a fleet of Cirrus Vision Jets, as well as unused infrastructure and a network of customers and partners. Flyte is hoping to absorb whatever assets bring value, Frommer said, while strengthening its foothold in the markets Verijet used to serve, such as New York, Miami, Los Angeles, and Las Vegas.
Unlike Chapter 11 bankruptcy, Chapter 7 begins a process of liquidation where a company’s assets are sold off and the proceeds distributed to creditors. It typically ends the bankrupt company’s existence.
Flyte connects travelers with private aviation options provided by Part 135 operators. The company also owns its own Part 135 operator, Ponderosa Air, which like Verijet uses Cirrus Vision Jets.
Growing the Vision Jet fleet is a top priority, Frommer said, and Flyte is now working to figure out how many of the aircraft Verijet actually owned and how many will become available to buy during the liquidation process.
Verijet was at one time the 13th-largest private jet operator in the U.S. From its base in South Florida, it served destinations in Texas, California, South Carolina, the Northeast, and the Caribbean.
But the company also faced complaints and legal action from customers, who said they purchased “jet cards” for flights that Verijet canceled, delayed, and ultimately could not complete. The company maintained that its jet cards did not guarantee availability.
Verijet has not operated flights since the death of its founder and CEO, Richard Kane, in September.
