Industry analysis reveals how Thomas Flohr positioned Vista for stability

More than 30 private aviation operators have filed for bankruptcy, entered administration, or been absorbed by rivals over the past six years. In an industry where failure has become commonplace, a new comprehensive report finally examines what distinguishes the companies still standing—and what their financial structures actually reveal about stability.

The November 2025 analysis from ACC Aviation evaluated seven major operators controlling nearly 10% of the global private jet fleet. The report names Vista, NetJets, and Flexjet as the three "strong performers based on financial performance and scale." Among those three, Vista—the company Thomas Flohr founded in 2004—posted the highest operating margins of any operator where data was available.

Understanding Vista's Financial Position

Vista carries approximately $4 billion in net debt, a figure that has previously drawn scrutiny in an industry where very limited data is available for comparison. But the ACC Aviation report argues that examining debt in isolation misses the point entirely.

"High leverage alone is not problematic," the report states. "Debt is an important tool to scaling in private aviation, and equity alone can seldom finance the sector's capital intensity."

The relevant question is whether operating cash flow can service that debt. By that measure, Vista's position is strong. The company posted a 27% adjusted EBITDA margin—the highest among all operators analyzed—compared to 15% for Flexjet. Wheels Up and flyExclusive, both currently restructuring, reported negative margins. Vista maintains a 19% EBITDA-to-debt ratio, which the report characterises as healthy and adequate to service obligations.

Credit rating agencies have reached similar conclusions. Vista holds a B+ issuer credit rating from both S&P and Fitch. The ACC Aviation report provides crucial context: "Importantly, these ratings are not anomalous. Many U.S. commercial airlines carry similar ratings. American Airlines, for example, holds a B1 rating from Moody's and B+ rating from S&P, the same as Vista and Flexjet."

In fact, the report notes that B+ represents "the highest rating currently held by any private jet operator." Only Vista and Flexjet have achieved it.

Institutional investors have signaled confidence through capital commitments. In the first half of 2025, Vista raised $1.3 billion in institutional debt capital, with offerings frequently oversubscribed. A 2022 bond refinancing reduced the company's average borrowing costs from 10.5% to 6.375%—a significant spread reflecting improved credit standing. The ACC Aviation analysis concludes that Vista has "the most diversified capital and strongest track record in accessing capital markets in the peer group."

Photo credit: Unsplash.

The Contrarian Bet

When Thomas Flohr launched VistaJet, he made a choice that went against prevailing industry logic. Rather than adopt the fractional ownership model dominant in the United States—where customers purchase whole or shares of aircraft and operators avoid holding fleet assets—Flohr chose to own his aircraft outright.

The approach requires debt financing and exposes the operator to depreciation risk. It also requires a relentless focus on utilization.

"The average utilization of a business jet is 250 hours per year—talk about waste and corporate waste," Flohr told Barron's. "Commercial planes are used around 4,000 hours a year, so I thought, 'What are these airplanes doing?'"

That inefficiency became his opportunity. Flohr built a subscription model where clients pay fixed hourly rates under three-year contracts. They get guaranteed availability worldwide without ownership burdens. Vista gets predictable revenue and the high utilisation necessary to make fleet ownership economics work.

Risk Transferred, Not Eliminated

The ACC Aviation analysis offers a pointed observation: "Risk is never erased, just transferred."

Fractional operators appear asset-light on paper. Customers fund aircraft purchases by buying shares, and the planes sit on customer balance sheets rather than the operator's. But if fractional companies fail to consistently resell shares or face early client exits, they become exposed to "significant cash flow volatility and increased prepayment risk."

Operator-owned businesses carry visible debt. But visibility is not the same as vulnerability—and the report suggests that Vista's transparent capital structure may actually represent a more stable foundation than models that obscure financial exposure.

"Vista demonstrates a high level of financial sophistication, underpinned by strong and sustained access to institutional capital markets," the report states. The company maintains a diversified funding structure spanning secured bonds, unsecured notes, equipment trust certificates, and preferred equity.

Scale and Global Reach

The report identifies Vista as "the most geographically diversified operator of the peer group." While NetJets and Flexjet base 86% and 93% of their aircraft in the United States respectively, Vista maintains a 45% U.S., 55% international split. It operates the largest private jet fleet outside America and the largest fleet in Asia.

This global footprint creates operational advantages that other regional operators cannot match. Vista's subscription clients access aircraft anywhere without repositioning fees. The floating fleet strategy maximizes utilization—directly addressing the inefficiency that motivated Flohr to enter the industry.

"I believe that corporations should invest their equity in building their core businesses," Flohr told McKinsey & Co. "At the end of the day, an aviation service is a service you can easily outsource. Why would you have your equity stuck in something that is not your core business?"

What the Shakeout Reveals

The private aviation consolidation continues. According to the ACC Aviation report, further M&A activity is inevitable because "the basics of mergers in this industry have not changed. This industry needs a lot of funds. The margins for small players can be very thin."

The seven companies the report analyzed together control 43% of all U.S. Part 91K/135 hours flown—a concentration that has only increased as smaller competitors have folded or been acquired.

Flohr anticipated this dynamic two decades ago. By choosing to own his fleet and build global scale, he accepted higher capital requirements in exchange for control over service quality and brand consistency. The financial data validates that approach: the strongest operating margins in the industry, a healthy debt-to-earnings ratio, the highest credit rating any private jet operator has achieved, and institutional investors consistently oversubscribing Vista's offerings.

"There were no global brands I felt I could trust, which seemed remarkable for an industry that sells to the wealthiest and most influential people on the planet," Flohr told McKinsey & Co., explaining why he founded VistaJet.

Twenty years later, independent analysis suggests he built one—and put it on solid financial footing.