Summary of the Article: Flapper‘s Expansion & Wheels Up‘s Divestment
This article details two significant developments in the private aviation industry: Flapper’s acquisition of Black Taxi Aéreo and Wheels Up’s sale of three businesses to TrustFlight.
Flapper’s Growth in Brazil & Beyond:
Acquisition: Flapper has acquired Brazilian AOC (Air operator Certificate) holder Black Taxi Aéreo, adding five aircraft under operation and aiming for a combined AOC with five directly operated aircraft. Revenue Forecast: Flapper projects $20 million in annual revenue within the next 12 months, driven by synergies from the acquisition.
Brazilian Market: The company is capitalizing on the rapid growth of fractional ownership in Brazil (11% growth last year, 61% above 2019 levels). They see a large, untapped market due to the limited number of aircraft certified for fractional ownership (39 out of 10,500).
International Expansion: Flapper is experiencing growth outside of Latin America, with over 60% of its revenue now coming from international markets. Their strategy focuses on serving international brokers and expanding their digital marketplace in the US and Europe.
Technology Focus: Flapper’s technology division remains unaffected by the acquisition and anticipates 500,000 downloads of its mobile app by year-end.
Profitability: flapper achieved break-even last year and is now raising new funding.
Wheels Up’s Strategic Shift:
Divestment: Wheels Up sold three businesses (originally acquired as part of Air Partner) to TrustFlight for $20 million.
Strategic Focus: Wheels up intends to use the funds to modernize its fleet and strengthen its financial position. The sale represents a move to focus on core business areas.
* TrustFlight’s Vision: TrustFlight aims to create an “operating system for safety” by integrating the acquired businesses with its software and data platform.
Overall: The article highlights a dynamic period in the private aviation sector, with Flapper aggressively expanding its presence in a growing market and Wheels Up streamlining its operations through strategic divestments.
