Earlier this morning, VizStar, Inc.’s CEO, Gary Clyburn Jr., issued a letter to the investment community outlining the Company’s current positioning, growth strategy and pending developments. The letter is presented below in its entirety.
Dear present and many future VizStar shareholders,
In the near future, we will be changing our name to Celestial Jets to better reflect our business operations. We are a private jet company that is using state of the art telecommunications technology to provide on-demand private jet service to a large and lucrative market, the upper income individual. This multi-billion dollar market is best represented by the 55 million premium airline seats available today, which together represent approximately 10% of all airline seats.
We feel that the recent recession has created a once in a lifetime opportunity to bring private jet service to these customers at affordable prices. Prior to the start of the recession in 2007, there was an explosion of private jet demand by corporations and extremely wealthy individuals. We saw the rise of Berkshire Hathaway’s Net Jets’ fractional share service whereby people would purchase a stake in an aircraft. Then there was Marquis Jets whereby people would pay $250,000 – $1,000,000 annually for a certain number of hours of private jet travel time. These programs created a large fleet of privately owned jets as demand soared due to passengers’ reactions to the delays caused by increasingly burdensome security at the major airports as well as the over-leveraged growth of the economy from 2001 – 2007.
However, the recent housing bubble burst, and consequent debt-laden recession, has forced private jet demand to drop dramatically. Moreover, public resentment for corporations that used their own private jets ignited when top auto executives flew to Washington on their corporate jets to beg Congress for bailout money. These conditions have created a large under-utilized fleet of highly efficient, private jets. The owners of these jets are looking for any source of income to offset their large losses in other economic areas of their life and are much more open to renting their jets out. This is the impetus that is allowing private jet service to be remade in the model of the private limo service.
Celestial Jets will grow in this market through a roll up strategy, acquiring the assets of jet charter businesses which have suffered in the recession. We have identified six potential targets for acquisition that fit our model and estimate they will add in excess of $40 million in revenue and $4 million in operating earnings by year-end. To solidify our growth, we are offering the highest commission payouts in the industry, creating the friendliest jet broker environment and an effective tool when recruiting additional brokers.
In addition, we will use modern technology to auction off unused seats on private aircraft that never used to be rented. It will be similar to “StubHub” or “eBay” for the private jet world. Celestial’s platform will also include various products and services to drastically reduce the cost of private jet charter and expand the market by creating a jet sharing program by the seat. This model will allow those who travel first class, business class, and even coach class to enjoy all the comforts and luxuries of private jet travel at prices much closer to a commercial flight. Our service will allow private jet travel with no up-front cash commitment; no monthly fees; and provide a 24 hour personalized concierge service. Customers will be able to book flights through the internet, aviation specialists and mobile applications such as Apple Inc.’s iPhone and Research in Motion’s BlackBerry.
We are confident that this two-prong strategy will show near term sales and earnings from consolidation, but more importantly, it will enable Celestial Jets to become one of the fastest growing technology companies serving the air flight consumption market over the next 2-4 years. I encourage investors to join us by purchasing shares and benefit from the company’s future earnings growth and consequent increasing share prices.
Sincerely,
Gary Clyburn Jr.
Chief Executive Officer
Vizstar, Inc.
224 Fifth Avenue, 4th FL
New York, NY 10001
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