Investment firm KKR is providing a credit facility of up to $150 million to support the growth plans of private aviation services company Jet Edge International, the companies announced on June 8.
Jet Edge, based in Van Nuys, California, is an aircraft charter, management and sales company specializing in super midsize and large-cabin business jets. The financing from KKR comes as Jet Edge introduces a new AdvantEdge charter management program aimed at improving the utilization of member-owners’ aircraft.
The credit injection also follows KKR’s announcement on June 7 that it has signed a definitive agreement with Macquarie Infrastructure Corp. to acquire fixed-based operator Atlantic Aviation for $4.48 billion, a transaction that is expected to close in the fourth quarter.
“Jet Edge has built a reputation as a best-in-class, scaled operator in the private aviation market,” KKR Partner Dan Pietrzak said. “This transaction continues our asset-based finance strategy of providing long-term funding to leaders in the global aviation sector so they can invest in their businesses and capture opportunities as the market recovers.”
The KKR credit facility supports growth initiatives across Jet Edge International’s businesses. These include developing technology to support clients, investing in marketing and accelerating the progress of business lines including Jet Edge Partners, the company’s sales division. Jet Edge Partners has booked $2.5 billion in transactions to date.
Under the new AdvantEdge offering, Jet Edge works with aircraft owners to schedule predetermined, dedicated blocks of charter hours in three tiers for each enrolled aircraft, resulting in more predictable revenues and schedules, as well as improved aircraft utilization. The program tiers are: Edge 250+, covering 14 weeks or at least 250 charter hours; Edge 500+ (28 weeks, 500 charter hours), and Edge 900 (52 weeks, 900 charter hours).
AdvantEdge is “aimed at substantially optimizing the inefficiencies found in the private aviation industry’s existing ownership and charter management procedures,” Jet Edge says. “AdvantEdge simplifies and enhances the financial predictability for whole ownership of large cabin and super-midsize aircraft with an innovative time-based model.”
Owners participating in the AdvantEdge program have preferred access to the Jet Edge aircraft network through the company’s “Reserve” charter membership program. Developed in part by industry veterans Steve Malvesta and David Lawrence, who joined Jet Edge from NetJets in 2020, the Reserve program provides owners with access to a varied fleet of aircraft if their own aircraft is booked for charter.
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