Private aviation group Vista Global Holding agreed to acquire European charter operator Air Hamburg's operating platform and maintenance services as it seeks to expand into European and Middle Eastern markets.
Vista expects an increase of about 30 per cent in flight hours on a combined basis globally after the deal is closed and have a 15 per cent market share of the global charter market, the company said in a statement on Monday.
The acquisition "brings a renowned institution of the European private aviation market into the Vista group and complements our growth and service offering across Europe and the Middle East", said Thomas Flohr, Vista’s founder and chairman.
Despite various geopolitical and economic concerns, global business jet activity is recovering faster than the general air traffic in February, according to a report by aviation data specialist WingX. Activity in the first half of the month was 31 per cent more annually, 15 per cent ahead of February 2020 and 8 per cent ahead of February 2019.
"As virus restrictions are lifted in Europe at an increasing pace, business aviation has continued to flourish, with sectors up 12 per cent on where they were back in February 2019," the report said of the region.
The acquisition deal is expected to be completed in the first half of 2022, subject to closing conditions and regulatory approvals, according to the statement.
Founded in 2006, Air Hamburg is a full-service private aviation company flying to more than 1,000 destinations in Europe. It organised more than 18,800 flights for its clients in 2021, recording more than 35,000 hours.
More than 650 highly skilled employees will join the Vista group after the transaction is completed.
"Over the last three years, we have experienced strong growth, significantly increasing our market share across Europe and beyond," Floris Helmers, Air Hamburg's chief executive and managing director, said.
"This co-operation between two of the largest operators means increasing our stability and securing further growth for our business."
Air Hamburg has 44 contracted aircraft, including Lineage 1000E, Dassault Falcon 7X and Embraer Legacy models.
The merger is the latest step in Vista’s inorganic growth in the highly fragmented business aviation landscape.
Following strong global demand for private aviation services from new and existing clients, the move builds on Vista's recent integration of Apollo Jets, Talon Air and Red Wing Aviation to the group.
Vista will also integrate Air Hamburg's maintenance hub at Baden Baden Airpark in Germany, along with its Executive Handling division and VIP lounge at Hamburg Airport, which will be available for Vista passengers to use.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
