KKR will invest an additional $40 million in Jet Edge International to support the growth of the charter operator’s technology and infrastructure, aircraft fleet, and Reserve membership program, the investment firm announced today. It follows a $150 million credit facility from KKR to support the launch in June of the Columbus, Ohio-based company’s AdvantagEdge charter management program, which recently added 27 aircraft.
“At a time when the private aviation industry is experiencing historically high demand, the Jet Edge team continues to impress us with its innovative solutions to age-old inefficiencies and strong operational execution,” said KKR partner Dan Pietrzak.
With the additional preferred equity investment, Jet Edge will continue its initiatives to optimize its scheduling system and make advancements in artificial intelligence-based programs to maximize fleet efficiency. Jet Edge also plans to expand its Reserve membership program, which it offers in three tiers—Red, Silver, and Black—priced at $100,000; $250,000; and $500,000, respectively. Members receive “priority access” to Jet Edge’s AdvantEdge fleet of Bombardier Challenger and Gulfstream aircraft through what the company calls a streamlined and flexible chartering process. Other benefits include bonus flight and catering credits, capped rates, empty leg discounts, and benefits through Jet Edge partnerships with resort and hotel operators Montage International, Discovery Land Co., and Four Seasons Hawaii Collection.
“We’ve successfully executed numerous growth initiatives driven by KKR’s initial financing and are excited to continue to build our platform with this new investment,” said Jet Edge CEO Bill Papariella. “We will continue to invest heavily in technology and back-end infrastructure to enhance the customer experience and help us stay ahead of evolving client demands amid rapid membership growth.”
Jet Edge’s new member acquisitions have grown 1,800 percent year-over-year and the charter, aircraft management, and brokerage company has received more than $100 million in membership deposits in the past year.