Aero Raises $20M to Revolutionize Luxury Air Travel

Aero Secures $20 Million in Series A Funding Amidst Resurgent Air Travel Demand

Aero, a startup originating from Garrett Camp’s Expa studio, has successfully completed a $20 million Series A funding round. This achievement coincides with a significant rebound in air travel, as noted by CEO Uma Subramanian, who stated demand is returning “with a vengeance.”

Previous Funding and Initial Plans

My prior coverage of Aero dates back to 2019, when Uma Subramanian was appointed as CEO and the company had already secured $16 million in funding. Following this announcement, the startup focused on acquiring and modifying aircraft. Initial plans involved a summer 2020 launch, following test flights between Mykonos and Ibiza.

Navigating the Pandemic

The global pandemic undeniably presented challenges, but Subramanian indicated the impact was less severe than anticipated. As travel restrictions eased and limited flight operations resumed, Aero began offering its services.

“We experienced a successful summer period,” she explained. “Significant numbers of seats were sold, and the company achieved gross margin profitability in both July and August.”

Aero’s Unique Travel Offering

Aero positions itself as a provider of “semi-private” air travel. Passengers benefit from departures from private terminals, travel on smaller, more comfortable planes – the company retrofits 37-seat aircraft to accommodate only 16 passengers – and receive a personalized, first-class experience through its dedicated concierge service.

Currently, Aero operates a single route connecting Los Angeles and Aspen, with one-way tickets priced at $1,250.

Industry Experience and Core Philosophy

Prior to Aero, Subramanian served as CEO of Airbus’ helicopter service, Voom. She initially approached the venture with caution, acknowledging the aviation industry’s traditional focus on maximizing passenger density. However, early demand validated her belief in a different approach.

“A distinct segment of travelers desires this type of service,” she asserted. “Air travel should be an experience to be savored, a departure from the mundane. We aim to recapture the enchantment of travel.”

For affluent travelers accustomed to spending substantial amounts on luxury accommodations, such as those at Amangiri in Utah, the pursuit of budget airfares seems incongruous.

Future Outlook and Demand Trends

Subramanian anticipates a slower recovery in business travel, but highlights the robust return of leisure travel, a trend expected to accelerate as the pandemic subsides. Furthermore, the emphasis on creating a luxury experience inherently supports social distancing protocols.

Investment Details

Keyframe Capital spearheaded the Series A funding round, with Chief Investment Officer John Rapaport joining Aero’s board. Cyrus Capital Partners and Expa also contributed to the investment.

Expansion Plans

The newly acquired funding will facilitate team growth and the addition of new flight routes. A Los Angeles to Cabo San Lucas route is slated to launch in April, and the company intends to resume operations in Europe later this year.

“While this is a challenging period for established airlines like Lufthansa, it presents a unique opportunity for new ventures,” Subramanian noted, citing the affordability of aircraft and other assets.

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