Known as a “next-generation air travel company,” Aero Technologies has announced that it has raised 65 million, 50 million of which came from a Series B funding round co-led by Albacore Capital Group and 15 million in convertible notes. The company currently operates on a small number of routes in the United States and Europe. New investment Capital One Ventures joined established investors Expa and Keyframe Capital on this path. The 20 million series A round from 2021 has resulted in a 300 million market cap for the company.
The company, unlike its rivals, caters solely to the leisure sector, operating a fleet of Embrear 135 regional aircraft with 16 seats and Legacy 600 planes with 13 seats (the business version of the Embrear 145). The company’s current operations include transport from Los Angeles and San Francisco to Aspen, Los Cabos, and Sun Valley, as well as flights from London to Obiza, Mykonos, and Nice in Europe. As it increases its fleet in the coming months, the company, which uses private terminals at the airport it serves, will change its timetable according to consumer demand (and the seasons).
You should expect to spend around 2,300 for a standard one-way flight from San Francisco to Los Cabos. That’s a lot more than you’d pay for a domestic first-class seat on an airline, but it’s still cheaper than renting a private plane. In general, customers may expect to pay around 1,700 for a trip on the company’s network.
“You get 80% of the value of a private for 20% of the expense,” said Aero CEO Uma Subramanian. Our clients do not fall neatly into any particular demographic category, but rather they are divided into groups according to the specific demands they have. They are usually well-heeled tourists who are willing to pay more for a memorable trip. They are their most valued customer and have the highest standards, thus they demand nothing less than the best service possible.
Subramanian said that business has been booming across Europe in recent months, with its flights from London to Ibiza and Mykonos frequently above capacity due in part to the general travel turmoil throughout the continent. Currently, the most well-liked routes in the United States are those departing from Los Angeles to Aspan and Los Cabos.
“I think we truly have product market fit in that sense that people are just really excited about the product,” Subramanian said. “I think air travel is something that people love to think about and this product is radically better than the alternatives, right? I think once something’s radically better and the company is viable and you can have a materially better experience, the product kind of sells itself.”
She also noted that the company’s connections with exclusive members’ clubs and hotels have contributed significantly to its success. The team from Albacore Capital, which is now co-leading its Series B round, actually started out as consumers of the company, as she pointed out.
Subramanian warned that those with a fear of heights should not pursue a career in aviation. It’s the kind of market where you need to be prepared to risk a lot of money for a long time. Therefore, it was not an easy crypto raise. Finding the appropriate investors was key, and I wish sometimes that it were a crypto raise. Although the process was lengthy, we were able to secure funding from backers that are “long on the business, long on the sector, and long on the product.”
The newly acquired capital will be used by the firm to enter new markets. A sizable portion of Aero’s expenses can be attributed to the fact that the company typically purchases its own planes. Subramanian did emphasise that the company is long on the L.A. market, but she would not reveal specific routes the company planned to expand. Aero is able to quickly adapt to market demands by switching up its routes because it has very low fixed costs on the ground. While other airlines are having trouble filling pilot positions, Aero has been able to do so thanks to its unique business strategy, which features nonstop flights that always land at night.