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 fractional jet operator Volato, following recent layoffs, has entered an Aircraft Management Services (AMS) agreement with competitor flyExclusive.
Under the AMS, flyExclusive will take over the management of Volato's entire fleet, flight operations, sales, and customer base, expecting to generate approximately $75 million in new revenue.
The agreement includes an option for flyExclusive to acquire Volato, or for Volato to merge into a flyExclusive subsidiary, within one year.
This strategic move aims to improve Volato's operational efficiency and reduce costs, while significantly expanding flyExclusive's direct-to-customer business and market presence.

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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.