Ok, the headline is a joke. But if VistaJet collapses uncontrollably, the cascade all the way down to the turbine level could be…..interesting.

On the plus side….who wants a cheap Global 7500? We could pool our pennies and put the BT logo on the side, just like a reckless Silicon Valley startup.

Unlocked WSJ article:
https://www.wsj.com/finance/vista-globa ... _permalink

Hard to imagine the impact on most of us bugsmasher types here. Even if someone gave me a global tomorrow, the property tax, hangar fees, maintenance bill would bankrupt me in short order. I would have to stretch to pay the taxi fuel, the dang APU probably burns more fuel than my PT6 But I guess there is some trickle down effect.

I couldn’t read the article because it was still locked for me. I flew for XOjet until Vista rolled out their “enhanced pay plan” a couple of years ago. Sad what they did to that company although I am very happy where I am at now

Bubbles do tend to burst eventually.

If the article is correct, this is sort of amazing, not in a good way.
How did this guy get banks to let him lever up that high?
The other part that is crazy is the self-dealing as the CEO was brokering planes to the company he was running, and to which he had a fiduciary responsibility.

break-break

Barring a broader economic crash, damage here likely limited to the very upper end of private, general aviation. This is big iron. Will likely have zero impact on the piston market and lower end of the turbine market. These birds are even way above light jet market.

This event, in and of itself, will likely not have an impact much below the markets in which these jets play. Also, if someone steps up, like in the case of WheelsUp, the damage could be limited. Once again, barring a broader economic hiccup.

I wonder how many lenders are soiling themselves right now, as the recovery value on their loans is looking dodgy,

Will be interesting.

Probably very few from my years of observation. Aircraft financing seems to be very "siloed" in that the guys who complete the loans have no interest in what happens to the collateral or the loan. That is someone else's issue to handle. When I've asked THOSE folks about issues I know to be present, they essentially do not want to "poke that bear" by investigating. If the guy is making his payments, all is good in their world.

In leasing arrangements when the aircraft is turned back in, a few bankers may be very concerned. However, they have done nothing to validate that the aircraft is being flown and maintained on a regular basis or that it is being flown within the parameters of the agreement. When you talk with THESE folks, doing the ongoing investigation is "too expensive". They would much rather take the overall loss on the asset(s).

Good luck.

None.

It was financed through Export Development Canada. It's a public agency that uses public funds to support businesses expanding overseas. They were buying Canadian jets and had HQ in Malta. Someone may get fired, but it's a government agency, so even that's not likely. Public gains, subsidized losses.
https://www.edc.ca/en/about-us.html

We have a similar agency: The Export-Import Bank of the United States
https://www.exim.gov/