Avantair unveils its “go-forward plan” for “NewCo”

On Wednesday, Avantair, provider of Piaggio Avanti fractional ownership, sent its “go-forward strategy” for “NewCo,” the working name for a reborn Avantair, that would initially seek to “restructure and support the company” as a mostly East Coast-only fractional company. Under the strategy, the business’s financial obligations would be cleaned out, though the strategy does not specify how that will be accomplished. NewCo would also downsize employees to a “core group” and secure additional financing. NewCo would likewise have to retain at least 300 of the 620 fractional shareowners. Its fleet– presently at 56 aircrafts– would be pared to 25 aircraft. Those shareowners deciding to stay with the new Avantair would have to pay a one-time assessment of $25,000 for a “catch-up maintenance fund” to bring the fleet to airworthy condition. Month-to-month management fees– which also include of 1/12th of business owners’ annual occupied time– would rise by nearly 40 percent, to $15,846. The new Avantair would also require “$4.5 million in funding to finance Avantair‘s restructuring procedure and allow NewCo to emerge with sufficient working capital.” Avanti maker Piaggio Aero has pledged to provide a $1 million financial investment and an additional $1 million in credit center on components. If it can draw in the required variety of clients and the required funding and shed its financial obligation, the new Avantair— which will be rebranded– might start operations early next month, the strategy says.

 

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