Bernard Arnault and LVMH, the world’s largest luxury conglomerate, are making a bold entrance into the private aviation space. Through their private equity firm L Catterton, they have taken a bold step into the ultra-luxury aviation sector with an $800 million investment in Flexjet, marking the largest equity investment ever made in a private jet travel provider. This move values Flexjet at approximately $4 billion and signals a new era where the worlds of elite fashion, hospitality, and private aviation intersect. Unlike Warren Buffett’s full acquisition of NetJets in 1998, LVMH’s approach allows Flexjet to remain independent, under the continued leadership of founder and chairman Kenn Ricci. The deal opens the door to strategic collaborations between LVMH’s constellation of brands and Flexjet’s vision of exclusive, high-touch flight experiences.

L Catterton’s $800 million investment secures a 20% stake in Flexjet, valuing the company at $4 billion, marking the highest-ever valuation for a private jet travel provider. With this new partnership, Flexjet aims to elevate its service offerings by potentially incorporating LVMH’s signature luxury aesthetics and lifestyle touchpoints. Ricci envisions the company operating more like an exclusive club than a traditional aviation provider, focusing on cultivating a high-value community experience that extends well beyond time spent in the air.

Interesting Key Insights are:

• Terminal Network: Flexjet operates 11 private terminals, providing secure, intimate service, and amenities like conference rooms and seasonal concierge perks.
• Financial Growth: Revenues have surged from $1.8B (2020) to $3.8B (2024); EBITDA reached $398.3 in 2024 and is projected at $425M for 2025.
• Fleet Expansion: The company ordered 182 Embraer jets ($7B value), leaning into larger, longer-range models like the Praetor 500/600 and Gulfstream G700.
• Helicopter Services: Flexjet now offers branded rotorcraft flights in NYC, London, Florida, the Bahamas, and parts of Europe, serving as a last-mile link.
• Strategic Timing: The deal was initiated by L Catterton in late 2024, aligning with its $11B capital raise and LVMH’s growing interest in luxury longevity and time-saving experiences.
• Competitive Philosophy: Rather than scale aggressively, Ricci aims to maintain exclusivity.

With LVMH’s backing, Flexjet is poised to redefine private aviation as an immersive luxury lifestyle experience in the skies and beyond.

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SOURCES: FORBES