XOJet Gets $2.46 Billion In Funding

Despite a credit crunch that some companies have blamed for their inability to find necessary capital, XOJet CEO Paul Touw says money is available for the right idea in the right package. The San Carlos, Calif.-based company launched just two years ago and has negotiated financing agreements with five organizations worth a total of $2.46 billion to fund a major expansion to Abu Dhabi in the United Arab Emirates. Touw told AVweb that despite the enormous wealth and growth of the area, there's a shortage of private jets. "It's an open playing field," he said. Like pioneers in most fields, XOJet has to bring what it needs to the UAE and that's why it needs so much money. "We have to build our own service center," Touw said.

XOJet has or has ordered 127 Cessna Citation Xs and will start service in Abu Dhabi with the speedy jet. But because a significant part of the market in the UAE is for trips of 4,000 nm (London, Singapore) or more, it will also need some aircraft with longer legs. It starts getting Bombardier Challenger 300 jets this fall to fill that need. Touw said one of the keys to obtaining funding was the innovative package it devised. He said he believes it's the first time a private jet firm has used a commercial-style approach to organizing the packages.