NBAA-BACE Mega Show

We are back!!

AuthorAuthor

Jessica Naor & Preston Holland
October 24, 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 fresh off NBAA in Vegas with the biggest reveal of the show, bankruptcies shaking the industry, major safety updates, and a potential new NASA administrator who actually knows what it's like to be in space.

Season 2, Episode 21 | October 23rd, 2025 | Episode Companion

🛫 The Runway Report

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

🛫 1. The Mystery Bombardier Buyer Revealed: PE Money is Back, Baby

The industry has been buzzing for months about who dropped $1.7 billion on Bombardier jets. Now we know: it's Bill Papariella, former CEO of Jet Edge, backed by KKR with $320 million in preferred equity and debt. He's not just buying planes—he's launching a new fractional program that's 100% fractional, no charter, no jet cards. Just pure ownership.

What this means: This is the biggest vote of confidence in private aviation we've seen in years. When private equity of KKR's caliber puts this kind of money behind a new entrant, they're betting on sustained demand in the high-end market. Bill's focus on long-range aircraft (think Global 8000s and Challenger 3500s) signals he's going after the international traveler… not the domestic charter crowd.

The bigger picture: We're seeing a bifurcation in the market. While some operators are trying to be everything to everyone, Bill's strategy is laser-focused: premium fractional for serious flyers who want guaranteed access without the complexities of charter. It's reminiscent of how VistaJet started—long-range aircraft, high-touch service, no dilution with charter operations. The real question is whether the utilization math works without charter revenue to backfill empty legs.

🛫 2. Verijet Files Chapter 7 with $10.5M in Jet Card Balances Outstanding

Verijet, the Florida-based charter operator, has filed for Chapter 7 bankruptcy with $10.5 million in outstanding jet card balances. This is a gut-punch for customers who prepaid for flights and now face an uphill battle to recover their funds. Chapter 7 means liquidation, so recovery prospects are grim.

What this means: If you had a Verijet jet card, you're now an unsecured creditor in bankruptcy court. The chances of getting your full balance back? Slim to none. This is a stark reminder that prepaid jet cards carry real financial risk, especially with smaller operators who don't have the balance sheet to weather market turbulence.

The bigger picture: This isn't an isolated incident. We've seen multiple jet card operators struggle or fail in recent years, and the common thread is cash flow management. When operators take in millions in prepaid revenue, they need disciplined financial controls to ensure those funds are available when customers want to fly. Verijet's collapse raises serious questions about escrow requirements and customer protection in the jet card space. Should regulators require operators to segregate prepaid funds? The industry needs to have this conversation before the next operator goes belly-up.

🛫 3. Pittsburgh-Area FBO Files for Bankruptcy Protection

A Pittsburgh-area FBO has filed for Chapter 11 bankruptcy protection, citing operational challenges and debt obligations. While the FBO hasn't shut down operations, the bankruptcy filing signals financial distress in a segment that's supposed to be relatively stable.

What this means: FBOs are the gas stations of business aviation—they should be printing money in a strong bizav market. When an FBO files for bankruptcy, it's either mismanagement, overleveraging, or a sign that local market dynamics have shifted. In this case, it appears to be a combination of factors including debt servicing challenges.

The bigger picture: The FBO business is capital-intensive with long-term leases and significant infrastructure investments. When fuel volumes drop or competitive pressures increase, thin margins get squeezed fast. This bankruptcy is a reminder that not all aviation businesses are benefiting equally from the industry's growth. Location matters enormously in the FBO game, and secondary markets can be brutal when corporate travel patterns shift.

🛫 4. VanAllen Acquires Business Aviation Specialist Essex Aviation

205 GIF by The Gong Show

Gif by thegongshow on Giphy

VanAllen, a dominant player in aviation services, has acquired Essex Aviation, a business aviation specialist. The deal expands VanAllen's footprint in the bizav services sector and adds Essex's expertise in aircraft management and maintenance to the portfolio.

What this means: Consolidation continues in the aviation services sector. Larger companies are snapping up specialized operators to build integrated service platforms. For Essex's customers, this should mean access to broader resources and capabilities. For VanAllen, it's a strategic move to capture more of the aircraft management value chain.

The bigger picture: We're seeing a clear trend: scale matters in aviation services. Companies like VanAllen are betting that integrated platforms create competitive advantages and better margins. The strategy makes sense: cross-selling opportunities, operational efficiencies, and negotiating leverage with vendors all improve with scale. The question is whether these acquisitions can maintain the boutique service quality that smaller operators are known for while achieving the scale benefits.

🛫 5. Argus Gold Just Got Real: Safety Audits Are Actually Being Audited

For years, Argus Gold was basically a pay-to-play database where you uploaded your credentials and boom, you're "audited." Meanwhile, Argus Platinum was where the real vetting happened. Not anymore. Argus is completely overhauling Gold to include SMS verification, emergency response plans, training manuals, and actual documentation reviews.

What this means: If you're a charter operator who's been coasting on a Gold rating, wake-up call incoming. The bar just got raised significantly. Argus is finally acknowledging what everyone in the industry already knew: Gold wasn't rigorous enough to mean anything, and flyers were starting to ignore it.

The bigger picture: This is a win for safety and transparency. When audit standards are too loose, they become meaningless checkboxes that don't actually protect passengers. By raising the Gold standard, Argus is forcing operators to implement real safety management systems instead of just ticking boxes. The industry has been calling for this, especially post-COVID when we saw a flood of new entrants with varying safety cultures. Now there's less daylight between Gold and Platinum, which means charter brokers and direct consumers can have more confidence in the ratings they're seeing.

🛫 6. Government Shutdown Looms: Duffy Threatens Layoffs as Delays Mount

Angry Season 4 GIF by The Office

Gif by theoffice on Giphy

FAA Administrator Michael Duffy is warning that a government shutdown could force layoffs and seriously delay critical aviation projects. With Congress playing budget chicken, the FAA is preparing for the worst-case scenario, which would furlough thousands of employees and halt certification work, infrastructure projects, and regulatory processes.

What this means: If the government shuts down, expect delays in aircraft certifications, new route approvals, and ATC modernization projects. For operators waiting on supplemental type certificates or operational approvals, this could push timelines by weeks or months. The ripple effects will hit manufacturers, operators, and ultimately passengers.

The bigger picture: The FAA is already stretched thin dealing with the aftermath of the Boeing crisis, pilot shortages, and aging ATC infrastructure. A shutdown would be catastrophic timing. This is also a reminder of how vulnerable aviation is to political dysfunction in Washington. The industry needs long-term, stable funding to address systemic challenges—not stop-and-start appropriations that grind progress to a halt every time Congress can't pass a budget.

🛫 7. Jared Isaacman for NASA Administrator: The Best Qualified Candidate (In Our Opinion)

After some speculation that the Trump-Musk relationship might derail Jared Isaacman's nomination, he's back in the picture as a leading candidate for NASA Administrator. And honestly? He's the most qualified person we've ever seen for this role. The man has actually been to space… multiple times. He's funded private spaceflight, led the Polaris Dawn mission, and understands both the technical and commercial sides of aerospace.

What this means: If confirmed, NASA would have someone at the helm who doesn't just understand space policy from a government building… he's lived it. Jared brings a unique blend of private sector innovation mindset with actual operational experience in space. That's unprecedented.

The bigger picture: The space industry is at a crossroads. NASA needs to balance its traditional missions with the explosive growth of commercial space. Having someone who bridges both worlds could accelerate partnerships with companies like SpaceX, Blue Origin, and emerging players. For the business aviation community, this matters too—space tourism and point-to-point suborbital travel aren't science fiction anymore. They're on the horizon, and having leadership that understands high-speed, high-altitude operations could help shape regulations that don't strangle innovation.

🎧 This Week's Episode

Missed the podcast? Catch up on the full episode at the links below! We would LOVE if you would give us a 5 start review, and share with your friends!

✈️ The Final Approach

BACE is coming up… if you’ll be there, so will we! Be sure to reach out to us and see your favorite podcasters in BIZAV! Also, leave us a review and share with a friend… would mean the world to us!

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

How did you like this week's episode?

Give us your honest feedback. We dish it, we can take it!

Login or Subscribe to participate in polls.

Reply

or to participate.