Private hangar provider for UHNW private jets goes public
The SkyHarbour Group, which rents private hangars to private jet owners who don’t want their planes to mix with the lower echelons of the top 1%, has set January 25 to begin negotiating publicly. It will be listed on the New York Stock Exchange following the merger with SPAC Yellowstone Acquisition Company. The nascent supplier had just under $ 1.2 million in rental income in the first nine months of 2021, its second year of operation and the latest figures available. However, he has big plans for growth. From its five current sites, two of which are operational, it aims to meet the needs of owners of UHNW aircraft in no less than 50 markets. The proceeds from its IPO will be used to finance the next 20.
When I first wrote about SkyHarbour in September 2020, the headline read, “When a private jet isn’t enough, here’s your own private hangar.” Its founder and CEO, Tal Keinan, says the need for his product has increased since then. As the use of private aviation in the United States hits record highs month after month, the additional demand, combined with supply chain and workforce issues, has revealed that its underutilized infrastructure was not designed for a large volume.
Aircraft owners are finding that FBOs are struggling to cope with the combined wave of transient travel with renters using their jets more often and on shorter notice. SkyHarbour offers its customers private row sheds, each with its own entrance, lounge, offices and indoor parking.
While owning your jet might seem like the height of freedom, parking is a different story. At FBOs, you share a driveway and garage with other owners, and the jets are parked wing-to-wing and nose-to-nose to maximize space. When your pilot calls to say you want to go somewhere, how fast you can leave is determined by how long it takes to move the other planes blocking yours. More jets at busy airports, out-of-service tugs waiting for spare parts and labor shortages can mean a wait of several hours or more. With SkyHarbour, you arrive, board your jet, the hangar door opens and you are ready to take off.
“There is a lack of ramp space in FBOs. There is a shortage of ground support equipment and there is a shortage of personnel, ”says Keinan.
Not having quick access to the flight for owners of large cabin jets, which often cost over $ 40 million, is counterintuitive. At least that’s what Keinan is hoping for and what investors are buying. Aviation-related SAVS, like the larger market for these specialist mergers, have mostly been under water.
SkyHarbour brings a story. While rental income from its hangars more than doubled for the first nine months of 2021 to $ 1,186,845, expenses fell from $ 2,075,804 to $ 8,138,911, resulting in a net loss of $ 8,362,364. $.
The proceeds from the equity offering and its bond program will provide approximately $ 800 million for future development. This includes the proceeds from an initial bond offering, which raised $ 168 million.
His proposition for aircraft owners is solid, especially when it comes to efficiency, time savings, privacy, safety and ensuring their jets stay in top condition. By avoiding foam dumps and rashes in the hangar – this is when your plane is struck by another during the moving process – SkyHarbour protects the value of rental planes. By being able to perform maintenance in their hangars, owners will find that they can use their aircraft more often. Many owners of large planes have more than one solution, sometimes split shares or jet cards when their plane is not available.
According to its latest filing with the SEC, Phase I of its installation at the Sugar Land Regional Airport in Houston has been completed. In Nashville, it renovated an existing facility that is operational. Phase 1 of the Miami-Opa Locka Executive Airport is scheduled for November and has already been completed. Phoenix Deer Valley Airport and Denver Centennial Airport are scheduled to open in 2024, when Sugar Land Phase II is expected to begin. By 2026, SkyHarbour projects rental revenues of $ 28.2 million for these initial locations.
A selling point of SkyHarbour to investors might be that it is not necessarily competition for FBOs. Since it will buy fuel for its tenants – the main source of income for private dba terminals at private jet service stations – the start-up will be a client. It will also free up much-needed ramp space for passing aircraft, assuming private travel demand remains at robust levels over the long term.
“There is a fork in the market,” Keinan says.
As Wall Street has apparently turned against democratization games like Wheels Up Experience and Blade Urban Mobility, investors will now be able to vote on whether they think the Super Rich need a better way to park their private jets. .