Latest news with #privatejet
Daily Mail
a day ago
- Business
- Daily Mail
Ex-Unite boss Len McCluskey took private jet flights and football tickets arranged by firm behind controversial multi-million hotel project
Len McCluskey enjoyed private jet travel and football tickets from a firm which allegedly overcharged his union millions on a controversial building project, a report found. The probe, ordered by his replacement as Unite general secretary, concluded Liverpool-based firm the Flanagan Group was appointed to build the hotel and conference venue in Birmingham 'with no competitive tendering process, and despite having a history of poor performance, delays, cost overruns' and alleged incompetence on previous contracts. It also found Mr McCluskey 'signed the contracts, overruled Unite staff who raised questions about the firm, and overruled lawyers who advised against' the contracts. His predecessor Sharon Graham tonight admitted: 'Money left our union when it should not have. And other money that should have come into the union did not.' Mr McCluskey, nicknamed 'Red Len', was one of the most powerful men in the industry and was a close ally of former Labour leader Jeremy Corbyn before quitting the trade union in 2021. He had been an enthusiastic supporter of the Unite hotel project, which intended to be a financial investment for union members. But it ran massively over budget - indeed, the report found Unite paid roughly triple the actual value of the Birmingham Hotel Development. In fact, the union - which represents more than a million workers across the UK - forked out at least £110 million for the project, despite being valued at only £37.5 million. The contract to build it was awarded to the Flanagan Group, whose bosses McCluskey described as his 'good friends', the report found. Scrutiny of Unite emails subsequently showed the firm arranged and paid for tickets to matches including to the Champions League finals in 2018 and 2019, as well as matchday hospitality Liverpool home matches against Premier League rivals including Manchester City and Arsenal. McCluskey also received flights, including at least one private jet flight, to their Champions League final success against Tottenham in Madrid in 2019. It also identified a £500,000 payment to the firm without an explanation - something the report described as 'very unusual'. The report found emails also show how Flanagan Group bosses 'sought to leverage their relationship with Len McCluskey (and Len McCluskey's own political connections) to assist with their business dealings.' Ms Graham said the situation was summed up by unforgettable examples of egregious spending, including paying £1.3 million to 'drill holes in walls' that should have cost just £90,000. She said: 'Of course, incompetency isn't a crime. Nor is lending money. But how could this eye-watering overcharging happen not once, but on multiple occasions?' The report found 'potential wrongdoing by a few was enabled by what Unite's auditors called a pervasive fraud environment.' Mr McCluskey told the report investigators that the Birmingham project was not his 'brainchild', and 'the view that Unite's monies were best invested in property was generally endorsed by other individuals' he spoke to. He said he signed the contract without seeing the legal advice raising concerns, and was 'totally unaware of the escalating costs of the project, he had no visibility of them, and hardly ever' spoke to the Flanagan Group. The Serious Fraud Office and the police are now investigating, including a possible criminal investigation into bribery, fraud and money laundering. This does not include Unite or any current member of its staff. The Flanagan Group declined to comment tonight.
Yahoo
a day ago
- Entertainment
- Yahoo
Orgies, threats at breakfast and Champagne at any cost: Private jet attendant reveals what the super wealthy are really like at 45,000 feet
In 2015, Danielle Styron, then 32, was offered her dream job as a private jet flight attendant. It promised a six-figure salary, trips to luxury resorts and full benefits. It seemed too good to be true — and it was. Over the course of two phone interviews, the pilot continually hinted at the 'alternative lifestyle' of the plane's owner, a religious man who split his time flying with his family half the month and with his girlfriends the other half. As the conversation went on, it became clear the role involved participating in orgies with the girlfriends onboard while the owner watched. 'We only fly them once a month, so it's not like you have to be a lesbian, you would just need to have fun with them,' the pilot assured her. Styron writes about the seedy job interview — and the seven years she spent flying with the rich and famous — in her dishy new memoir 'The Mile High Club: Confessions of a Private Jet Flight Attendant' (Post Hill Press; out now), co-written with her brother, James Styron. 'Names have been changed to protect (us from) the malevolent,' the intro reads. 'Behaviors have been presented to humble them. You know who you are.' Styron, now 41, didn't end up taking the job with the orgy-loving jet owner, but she went on to work for for a number of difficult people. Some of her clients, she writes, were 'miserable, vampires of human joy.' One passenger berated her for not having the proper tequila stocked, even though it wasn't requested. Anorexic, food-obsessed wives micro-managed everything that came out of the galley kitchen. An assistant threatened to punch her in the face over a not-hot-enough breakfast sandwich. Then there was the time a woman shoved Styron into a bulkhead mid-turbulence because her beloved puppies got jostled. 'She treated the dogs better than any human on board,' Styron writes. One of her lowest points was being asked to source Champagne on the tropical island of St. Maarten, just after it had been devastated by a hurricane. The client demanded bubbles despite the natural disaster. 'I'm standing there thinking, 'There's no Champagne. There was just a major hurricane. People are standing outside waiting for bread, and you're asking me to spend $20,000 on bubbly,'' Styron told The Post. There was only one supermarket open, which Styron begrudgingly patronized in search of the requested Champs. 'It felt dystopian,' she said. Then there was the two-timing bigwig who would fly with his pregnant wife one day and his mistress a few days later. 'As a woman, it was hurtful to be a part of that,' she said. 'Even though I had no choice. What was I going to do, blow my life up to be like, 'Yo, your man's cheating on you?' She probably already knew.' Sometimes, as the title of the book suggests, passengers got intimated in flight. She and her crew knew the drill: retreat to the front, let the guests go at it, and deal with the cleanup later. 'It's usually in the bathroom, galley, or right there on the sofa,' she writes. 'It's their house, right? Private jets are like flying living rooms.' Despite the uncomfortable situations and challenging passengers, the jobs also entailed plenty of good times and perks. She partied in Las Vegas with pilots and jetted off to Costa Rica, Aspen and St. Barts. One time in LA, the plane broke down on the tarmac, a typical mechanical delay. Danielle was tasked with keeping the charter guests fed and entertained while the pilots tried to fix the plane. The lead passenger was none other than actor and comedian Jamie Foxx. Unlike most high-profile clients, he took the delay in stride. He was 'the most delightful celebrity,' she said. 'He was cracking jokes and telling stories. He was pure light. [After three hours on the ground,] we were out of food, the mimosas were gone, people were losing patience, but not Jamie. He was still smiling. Still gracious. It restored my faith in humanity.' Misery, however, seemed to be more the norm. 'You think these people have it all,' she said. 'But I saw the opposite. They're really insecure. Their friends are all about one-upmanship. One man owned several planes, had a beautiful wife, everything in the world, and he was obsessing about his hair plugs. Like who cares?' Styron ultimately retired from aviation and went back to doing what she'd done before, working as an aesthetician. She now owns Fluff NYC, a brow and skincare studio on the Upper East Side, where she tends to people's faces — not their egos. 'It's less glamorous,' she said with a laugh, 'but way more peaceful.' Solve the daily Crossword
Bloomberg
2 days ago
- Business
- Bloomberg
Bernard Arnault's Private Equity Firm Leads $800 Million Investment in Flexjet
L Catterton, the private equity firm backed by French billionaire Bernard Arnault, led a $800 million equity investment in Flexjet, as demand for private jet travel around the world continues to surge. Flexjet, the world's second-largest private jet company, said the investment by L Catterton will bolster its strength in the luxury market and allow it to offer more bespoke experiences and curated events that are exclusive to its customers. Affiliates of KSL Capital Partners and the J. Safra Group also participated in the funding round, Flexjet said in a statement.
Forbes
2 days ago
- Business
- Forbes
LVMH, Arnault Join The Private Jet Fray Via $800M Flexjet Investment
Number 8, meet Number 10. This morning's announcement that L Catterton had closed an $800 million equity investment into Flexjet, Inc., brings luxury goods titan Bernard Arnault, currently ranked by Forbes as eighth richest person on the planet into the arena where Warren Buffett, currently in the 10th spot, has reigned undisputed king of private jets since acquiring NetJets back in 1998. It is the 'largest equity investment ever committed to a private jet travel provider," according to Flexjet. Unlike Buffett, who bought the company in its entirety from founder Richard Santulli for $725 million in cash and stock and folded it into Berkshire Hathaway, Flexjet, Inc. will stay independent. Its chairman, Kenn Ricci, remains the largest shareholder, and Todd Boehly, ranked 379th on the Forbes list, continues to hold a stake in the private jet flight provider. The new investors are taking about 20%, which would value the Richmond Heights, Ohio-based company at around $4 billion. In 2023 the late Charlie Munger told shareholders at Berkshire Hathaway's annual meeting, 'NetJets has been remarkable. You can argue it's worth as much as any airline now.' American Airlines, the least valuable of the big four, was valued at around $9 billion. PARIS, FRANCE - Chairman & Chief Executive Officer of LVMH Bernard Arnault in Paris. The LVMH and ... More Arnault family-backed investment group L Catterdon has made an $800 million investment in private jet flight provider Flexjet, Inc., the chief rival to NetJets, which is part of Warren Buffett's Berkshire Hathaway. (Photo) Ricci bought Flexjet from Bombardier in 2014 for $185 million and merged it with Flight Options, a company he founded in 1998, sold in 2003, and then bought back in 2008. In addition to selling fractional aircraft shares and leases under the Flexjet brand, Flexjet, Inc. includes jet card inventor Sentient Jet, which Ricci acquired from Macquarie Global Opportunities Partners in 2012. There is also an on-demand charter broker, FXAir (created from the 2018 acquisition of PrivateFly), operators in Europe, where Flexjet has been expanding, and an extensive network of MRO locations to support the maintenance and refurbishment of its fleet. Flexjet, Inc. revenues have more than doubled from $1.8 billion in 2020 to $3.8 billion last year. At the same time, EBITDA rose from $202.8 million to $398.3 million, per numbers supplied by the company. EBITDA is projected to reach $425 million in 2025. L Catterton announced in May an $11 billion aggregate capital raise in a new fundraising cycle. The company was established in 2016 through a partnership between Catterton, LVMH, and Groupe Arnault. Arnault is, of course, the chairman and CEO of LVMH, the luxury powerhouse whose over 75 brands include Louis Vuitton, Dior, Fendi, Tiffany & Co, Hublot, Tag Heuer, Rimowa, Dom Perignon, Krug, and Sephora. It also includes the Cheval Blanc hotel group as well as Belmond's hotels, river barges, and trains, which it bought in 2018 for $3.2 billion. In 2022, Arnault reportedly sold his own private jet to evade flight trackers. Ricci, along with executives at NetJets and VistaJet, have all stated that their companies have gained sales from UHNWs and companies who, if they didn't sell their aircraft outright, are using fractional ownership and subscription flight services when they want to fly under the radar or need extra availability. NetJets claims around 40% of Fortune 500 companies, many which have their own corporate jets, are also customers with the company. In the official press release provided under embargo, Ricci notes explicitly, "L Catterton, with its special relationship with LVMH and its family of brands, provides the perfect opportunity for collaborating in areas such as consumer insights, brand strategies, retail expansion, and luxury product delivery." When asked about what could be on tap, Ricci said, "I'm not going to spoil (it), because other things are coming. We've got to dribble out the whole concept." Flexjet, Inc. Chairman Kenn Ricci at the company's worldwide headquarters in Richmond Heights, Ohio, ... More outside Cleveland. Ricci has built the private jet flight provider into the chief rival of Berkshire Hathaway's NetJets. In the past, LVMH introduced Dior spas on Belmond trains, partnered with Marriott International to develop hotels featuring its Bvlgari jewelry brand, and collaborated with real estate developers on Fendi-branded luxury residences. Flexjet has partnered with Bentley and Riva to design custom interiors on its ultra-long-range Gulfstream G650s and Sikorsky helicopters. READ: Selling Private Jets: Rock Stars, Riva Yachts, Facials And Fast Cars It's a point Ricci believes will separate his offerings from those of Berkshire Hathaway. During an interview Saturday from Italy where he was traveling, Ricci said, "Years ago, when we created Red Label, we saw NetJets as a very utilitarian, great provider, good service, but a utilitarian company. I always call them the Greige company, they're gray and beige." The official release noted, "Flexjet's vision includes a more bespoke experience that begins with access through private terminals and ends with providing unique access to destinations, products, and curated events that are not available outside of the Flexjet community." Flexjet has 11 of its own private terminals in high-demand locations, which are either open or under construction. The terminals are reserved for its customers, allowing it to provide a more private and elevated experience, as well as special services. For example, in Naples, Florida, it offers a secure and sheltered long-term car park area for clients who visit seasonally. Local fractional jet owners sometimes use conference rooms at the facilities for impromptu meetings. A few just stop by to hang out in a sort of private aviation version of the bar featured in the television sitcom Cheers. READ: Why Your Future Private Jet Flight May Come With A Birkin Bag Ricci said the deal is also about how he sees Flexjet evolving. "Our business model is a club. You pay a fee to join (the acquisition cost of your share in a private jet), you pay a monthly management fee (to cover the overhead), and you pay an hourly fee (to fly). To me, that's a country club model," Ricci said, adding, "What could I do to make you not want to leave the club, maybe even when you're flying less, or even when you're not flying at all? My analogy would be, you join Augusta (National Golf Club, home of The Masters), you play golf, but when you can't play golf anymore, you don't resign from Augusta, because it's so prestigious. It's so cool to be a member there." He added, "If you start to think about what could this community be that's unique? It could be, obviously, around travel, it's around luxury. There is the luxury of longevity." Flexjet currently offers benefits with Fountain Life and Health Nucleus, which Ricci said are the most used by its customers. The interior of a Flexjet Gulfstream G650 designed in collaboration with Bentley. It is part of ... More Flexjet's LXi collection of bespoke cabin interiors. An investment by LVMH-backed L Catterdon is expected to see collaborations with maisons of the Paris-based luxury conglomerate. Ricci said plans are for targeted growth. "If you're a member of the club, do you really want me to tell you, 'Oh my gosh, we've got so many new members?' No. You want to believe (the club is) something special, so you don't want to see a huge growth. Whatever we do has to be almost somewhat aspirational. It can't be available to everybody. I don't need my competitors to fail for me to succeed. In fact, to some extent, I don't even want all my competitors' business. I want a particular type of business that I'm focused on." That business is likely customers who want more luxurious jets, longer flights, and last-mile services in congested urban areas. Its $7 billion order for 182 private jets from Embraer back in February was weighted towards the OEM's high-end Praetor 500 and Praetor 600 aircraft, which each feature a stand-up cabin. While NetJets has around 800 total aircraft in its fractional program, compared to just over 300 for Flexjet, the margin is much narrower when it comes to long-range jets. As of earlier this month, NetJets had 83 Bombardier Global long-range jets compared to Flexjet's current 67 long-range jets, predominantly Gulfstreams. Flexjet has also established a branded helicopter service. It currently operates in the metropolitan areas and suburbs of New York City and London, England, as well as across South Florida and the Bahamas. It recently added service in Northern Italy and along the French Riviera. Fractional owners can exchange jet hours for rotorcraft flights, saving them time and, in some cases, bringing them to their backyards, rooftop helipads, yachts, or their private islands. READ: New Report Highlights Private Aviation's Impact On Travel And Tourism Ricci added of collaboration with LVMH and Arnault's team, "They'll teach me a lot of this, because they know a lot about brand. I don't pretend to know what they know about how to brand, and price, and position," however, he quipped, "I know we're not talking about on our website, because of LVMH, you could go buy a bottle of Dom Perignon." Flexjet has already scheduled an announcement for September, which is expected to introduce its first Gulfstream G700 which adds space, amenities and range to the G650s. Ricci said he wasn't in the market for a deal when L Catterton approached him in early December. 'The pitch they gave me was that LVMH thinks luxury of the future is around longevity and time. They're making big investments in the longevity and life extension space, and when they brainstormed about where they could invest in time, they came back to corporate aviation.' Door-to-door time savings compared to using airlines is the number one reason private flyers cite for paying the steep fees, according to a survey of subscribers to Private Jet Card Comparisons, a buyer's guide that compares over 500 fractional and jet card programs. In terms of lifestyle interests, the same poll shows travel for pleasure ranks first, with health and wellness fourth. Ricci said this morning's announcement is not connected to the oversubscribed $550 million bond offering late last year. Ricci says that after Flexjet scrapped a planned SPAC IPO in April 2023, the company reached out to 18 private equity firms and spoke with six of them. L Catterton was one of the targets, but they never responded to the outreach. Nothing further came of the effort. Ricci said, 'We went down the SPAC, then we did the private equity, then we did the bonds, but that was really all about liquidity for Todd Boehly. This is a whole different vision.' However, Ricci says the interest in collaborating with LVMH dates back to a 2008 brainstorming exchange on email with Darnell Martens, his chief strategy officer. 'Just to show you how much of an underperformer I am, it took me 17 years to bring the deal together,' Ricci joked. For its part, L Catterton Global CEO Scott Dahnke said, "Flexjet epitomizes our category-first approach and, although they are celebrating their 30th anniversary this year, their history is one of never settling in pursuit of thoughtful innovation to best fulfill the desires of the consumers within their unique and exciting marketplace." KSL Capital Partners, LLC, and the J. Safra Group participated in the deal with L Catterton. Jefferies, Morgan Stanley & Co. LLC, and Goldman Sachs acted as co-advisors to Flexjet. In terms of business aviation as an industry, which is often criticized by both climate change advocates and anti-wealth campaigners, this morning's news means that two of the world's wealthiest men now have bets on private jets. During the first half of 2025, worldwide private jet flights reversed a two-year slide from their COVID-induced all-time peak in 2022. So far this year, departures increased by 3% compared to 2024. READ: NetJets, Flexjet And VistaJet Executives See Plenty Of Room For Growth Rich List members have long had a fascination with airlines, both public and private. Laurance Rockefeller was an early investor in Eastern Airlines. Howard Hughes controlled TWA between 1939 and 1966. Kirk Kerkorian launched his own airline, MGM Grand Air, to fly celebrities and business titans between New York and Los Angeles. He also made a bid for Pan Am in 1987. Asked if Arnault and LVMH's arrival could spur other centi-billionaires such as Elon Musk, first on the Forbes list, or Jeff Bezos, currently fourth, who are already heavily investing in space travel, to enter the arena, Ricci said, "Well, look, I hope so because it's good for our industry. It's really good if they do." Others who made fortunes in hard luxury, selling fashion and jewelry, but may now want to take a closer look at private aviation as they expand into lifestyle and experiential assets, could include France's Pinault family, ranked 93rd on the Forbes list. The owners of Gucci, Saint Laurent, and Brioni have bought three luxury cruise lines since 2015 and hold stakes in Château Latour, auction house Christie's, and Creative Artists Associates. If the cross-pollination between Flexjet and LVMH yields tangible results, the billionaire proprietors of Chanel, Hermes, and Richemont SA, which owns Cartier, Montblanc, and Van Cleef & Arpels, would likely have little trouble raising capital to buy or start something. READ: Vital Farms Founder Matt O'Hayer Buys Top 20 Charter Operator Arnault's endorsement could also provide fuel for other entrepreneurs to gain financing for their private jet flight provider concepts. Ricci previously credited the Oracle of Omaha with making it possible to launch Flight Options. Earlier this year he recalled in a webinar, 'The idea of fractional in the mid-90s with used aircraft was my idea…We estimated we needed about $60 million to $80 million…We went out to the banks with my great idea…and maybe we had $7 million, $10 million in debt available…Then, in 1998, Warren Buffett bought NetJets. And every bank I had been to thought I was a genius all of a sudden. And they were all looking to get into the industry and we had $500 million. In some way, but for Warren endorsing our industry, I never would have found the debt capital to be able to build the inventory and go as fast as I did.' Ricci also says that neither Flexjet nor its new investors are the mystery customer for a $1.7 billion firm order placed with Bombardier late last month.
Yahoo
2 days ago
- Business
- Yahoo
Private carrier Flexjet valued at $4 billion in latest funding round, Financial Times reports
(Reuters) -U.S. private jet operator Flexjet raised $800 million in a funding round led by LVMH-backed private equity firm L Catterton, valuing the company at about $4 billion, Financial Times reported on Monday. The funding comes as Flexjet looks to expand its fleet to meet rising demand from technology and cryptocurrency entrepreneurs, the report said. "We have a tremendous amount of different types of entrepreneurs this year. . . in the tech space but also Bitcoin, they become so speculative and so there is rapid wealth in that industry," Flexjet Chair Kenn Ricci told the newspaper. Flexjet did not immediately respond to a Reuters request for comment. Earlier in February, Brazilian planemaker Embraer signed a purchase deal worth up to $7 billion with Flexjet for a fleet of Phenom and Praetor executive jets, including firm orders for 182 aircraft and options for another 30. Analysts at JPMorgan expect the deal to increase Embraer's total backlog by about 26% to $28.7 billion, forecasting deliveries over the next five years, as Flexjet plans to double its fleet during the period. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
