JetSmarter proved technology could disrupt charter booking. The mobile platform aggregated empty-leg inventory and shared flights, reaching a unicorn valuation before Vista Global acquired it in 2019. Technology worked. But technology alone had limits.
Sergey Petrossov discovered those limits at Vista Global, where he served as President of XO and Chief Growth & Digital Officer of Vista following the JetSmarter acquisition. Vista merged JetSmarter’s consumer-facing platform with XOJET’s fleet operations, combining booking algorithms with physical aircraft management, maintenance coordination, crew scheduling, and regulatory compliance.
“After Vista acquired JetSmarter, I led the combined JetSmarter + XOJET platform,” Petrossov told Sherpa Report. “There, we learned that technology alone wasn’t enough – true excellence required vertical integration. By uniting consumer distribution, assets, operations, and technology, we created a sustainable model that XO still benefits from today.”
That lesson also shapes the structure of Petrossov’s newest venture: Aero Ventures. The firm provides AI-based software connecting buyers and sellers, but it also owns aircraft, deploys capital for purchases, and extends credit for transactions.
Software Platforms Hit Ceiling Without Assets
Pure software platforms in aviation face structural constraints. They can aggregate listings, provide market data, and connect counterparties. But they can’t guarantee liquidity when markets tighten, can’t bridge financing gaps when buyers face capital constraints, and can’t deploy capital to accelerate transactions when timing matters.
Vista’s acquisition addressed the gap by combining JetSmarter’s distribution with XOJET’s fleet. The merged entity could deliver end-to-end service: customer acquisition through technology, backed by operational assets ensuring service quality.
Aircraft Ownership as Strategic Capability
Aero Ventures is applying this vertical integration lessons to ownership transactions. The firm combines three capabilities: brokerage advisory serving buyers and sellers, capital deployment for aircraft purchases and financing, and an AI-driven platform providing market intelligence.
Traditional aircraft brokers facilitate connections, earning commissions on completed deals. They typically don’t deploy principal capital to purchase inventory or extend financing. Their business model depends on transaction flow, but they can’t accelerate deals when buyers face liquidity constraints or sellers need immediate capital.
Aero Ventures can. The firm purchases aircraft directly using its balance sheet, providing sellers guaranteed liquidity within 48 hours according to Petrossov. It extends bridge financing enabling buyers to acquire aircraft even when capital remains tied up in existing assets. And it structures arrangements where sellers receive upfront capital with shared upside on eventual resale.
Revenue Diversification
Vertical integration enables Aero Ventures to capture value at multiple transaction stages. Traditional brokers earn only commission revenue. Aero Ventures earns brokerage commissions facilitating sales, interest income from bridge financing, and potential profit from aircraft it purchases directly and resells.
Automotive markets followed similar paths. Online listing platforms gave way to companies like Carvana and CarMax deploying capital to purchase vehicles directly, capturing profit from resale rather than just facilitating connections. These models worked because they controlled more variables that pure marketplaces couldn’t guarantee, such as inspection standards, pricing, and delivery timelines.
The Operational Expertise Requirement
Owning aircraft and extending credit demands operational knowledge beyond software development. Accurate valuations require understanding depreciation curves for different aircraft types, maintenance schedules affecting residual values, and market dynamics determining absorption rates.
Petrossov and Aero Ventures Founder Bill Papariella collectively managed operational oversight of more than 300 aircraft throughout their careers, completing over $4 billion in transactions. Petrossov scaled JetSmarter and served as President of XO. Papariella built Jet Edge International from four aircraft in 2011 to over 150 jets before Vista acquired the company in 2022.
Their combined experience informs capital deployment decisions. Rather than relying solely on algorithms or third-party valuations, they can assess aircraft condition, maintenance status, and market positioning through hands-on expertise. That knowledge matters when deploying millions in capital to purchase inventory or extend financing.
The AI-driven platform accelerates data gathering, pulling transaction prices, specifications, and market comparables, but human judgment interprets that data for capital decisions. Technology provides speed. Operational expertise provides context. Vertical integration requires both.
