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Flexjet Bets Big on 300 Aircraft Order, and Mexico Changes the Rules Again

Plus, FAA movin on out, and a familiar brand moving into a new space.

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Jessica Naor & Preston Holland
October 01, 2025

✈️ The VIP Seat Weekly

Your business aviation hot takes, served fresh

This week: Welcome back to The VIP Seat, where we cut through the noise to bring you the stories that matter in business aviation. This week, we're covering FlexJet's massive bet on a windowless jet, Mexico's regulatory chaos, the FAA's crackdown on illegal charter, and Million Air's expansion into aircraft sales.

Season 2, Episode 18 | October 1st, 2025 | Episode Companion

🛫 The Runway Report

The top 5 stories from this week's podcast that are moving the needle in bizav

🛫 FlexJet Bets $5.85 Billion on a Bullet-Shaped Jet With No Windows

FlexJet just dropped one of the largest aircraft orders in private aviation history: 300 Otto Aviation Phantom 3500s. This isn't your typical supermid… it's a windowless, all-carbon-fiber design with walls made of high-definition screens displaying live exterior camera feeds. The cabin boasts six-foot-five headroom and promises to cut fuel burn by 60% compared to conventional jets.

What this means: At $19.5 million per aircraft, the Phantom 3500 could undercut other supermids in the category on price while delivering superior fuel efficiency. For fractional operators like FlexJet, lower operating costs and cheaper acquisition prices could translate to more competitive hourly rates… if customers are willing to embrace the unconventional design.

The bigger picture: This isn't FlexJet's first big bet on clean-sheet aircraft (remember their Aerion order before that company folded?). The real question is whether fractional buyers will commit to shares in an aircraft with zero ramp presence and a design that looks more Cybertruck than Citation. Set to enter service in the late 2020s, this order signals FlexJet's commitment to innovation—even if it takes a few years to materialize.

🏛️ Mexico Just Made Your Cabo Trip Way More Expensive (and Complicated)

Gif by Moxie88 on Giphy

Mexico's Civil Aviation Authority abruptly stopped accepting single-flight permits for N-registered aircraft, forcing operators to obtain blanket ferry permits instead. The problem? These permits cost around $15,000, take months (sometimes years) to secure, and require extensive paperwork. Single permits previously cost around $1,500 and could be obtained relatively quickly.

What this means: If you're a broker or smaller operator without a blanket permit, you're either scrambling to book larger operators like Fly Exclusive that already have these permits, or you're pulling in XA-registered Mexican aircraft and eating hefty repo fees. For passengers, this translates to higher costs and fewer aircraft options for Mexico trips.

The bigger picture: This effectively functions as a tax on wealthy Americans flying to Mexico while protecting Mexican operators from competition. It's not the first time Mexico has implemented sudden regulatory changes with minimal notice, and it won't be the last. The move disproportionately impacts smaller Part 135 operators while benefiting large-scale charter companies with existing infrastructure.

✈️ The FAA Is Finally Cracking Down on Illegal Charter Text Groups—Sort Of

Remember those WhatsApp groups where Part 135 operators were allegedly selling individual seats to passengers? The FAA has apparently taken notice and is stepping up enforcement against operators involved in these schemes. The challenge? It's a gray area, enforcement takes years, and it's unclear whether the FAA will target operators, passengers, or both.

What this means: The FAA's Special Emphasis Investigation Team (SEIT) has been trying to crack down on illegal charter for years, but cases drag on for so long that by the time enforcement actions are taken, the impact is minimal. Even when the FAA wins, penalties often aren't severe enough to deter future violations.

The bigger picture: The illegal charter problem isn't going away because the FAA lacks the resources, speed, and enforcement teeth to meaningfully address it. Perhaps it's time to outsource enforcement to third parties who can act more quickly and effectively. Until then, legitimate operators will continue competing against unlicensed operations that undercut them on price while compromising safety.

💼 The FAA Is Moving Into DOT Headquarters—At a $258 Million Price Tag

Transportation Secretary Sean Duffy is pushing to consolidate the FAA's 44,000 employees into the Department of Transportation's newer headquarters building. The FAA currently occupies the aging Orville and Wilbur Wright building (move in date of~ 1963) on the National Mall, which suffers from outdated IT infrastructure and reportedly had lead contamination in the water at one point.

What this means: There are three renovation options ranging from $43 million to $258 million, with the FAA lobbying for the most expensive full-scale renovation. Union leaders are predictably resistant, arguing the move will be disruptive. Meanwhile, the sale of the existing FAA building could help offset renovation costs.

The bigger picture: This isn't just about real estate… it's about modernizing the FAA's technology systems and integrating them with DOT infrastructure. The agency still distributes operator lists via Excel spreadsheets in 2025, which tells you everything you need to know about their IT capabilities. Consolidation could finally force the digital transformation the FAA desperately needs.

📊 Million Air Launches Aircraft Sales Division, Expands Into Multi-Vertical Services

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Gif by abcnetwork on Giphy

FBO giant Million Air is making moves beyond the ramp, launching a dedicated aircraft sales division led by industry veteran Tyler Bowren. The company is expanding its service portfolio beyond FBOs to include aircraft brokerage and jet card offerings, leveraging its strong brand recognition and network of premium facilities across the country.

What this means: With over 25 aircraft across multiple Part 135 certificates and a reputation for top-tier FBO service (including the $80 million White Plains renovation), Million Air now has the scale to compete in aircraft sales. For brokers, this creates interesting dynamics—you're sending clients to an FBO that could potentially compete for their brokerage business.

The bigger picture: The aircraft brokerage space is heating up as transaction activity accelerates heading into Q4, fueled by bonus depreciation and rate cuts. Million Air's move signals potential consolidation in the brokerage industry, where traditionally low barriers to entry have led to fragmentation. Founder Roger Woolsey has explicitly stated he won't take on private equity and plans to pass the business to his daughters—this is legacy building, not an exit play.

🤳 Mile High Madness

This week's wildest aviation content from social media

Private Jet Studios With Funny Couches: Those of us who know, know when we aren’t looking at a real private jet. Look no further to this private jet complete with white couches and a stool that isn’t attached to anything. Oh, and they’re also missing The VIP Seat…

Birds with Trust Funds? The caption says it all… this parrot has a trust fund and is eating on finer china than most of us will ever even see. The richest pet in the world is Gunther VI, a German Shepherd, with a trust fund of $400m… That’s a good boy!

🎧 This Week's Episode

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✈️ The Final Approach

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The VIP Seat Weekly is the companion newsletter to The VIP Seat podcast. We give you the business aviation hot takes for your commute.

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