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David N. Siegel new CEO to XOJET Inc: Paul Touw out

By Amarendra Bhushan for CEOWORLD Magazine Updated:October 6, 2008

Aviation industry veteran David Siegel has been named president and chief executive officer of private aviation company San Carlos-based XOJET Inc. Private jet timeshare busines XOJET, which has secured financing for a major expansion of its base at McClellan Business Park, said Siegel has been a member of its board of directors since 2007. He also has served as CEO of Gate Gourmet and US Airways Group Inc.

“Having successfully led the company since its inception two years ago, Paul Touw, the company’s founder and chief architect, will take on the role of executive chairman, strengthening the leadership team as the company enters an exciting new phase of growth,” the company said in a news release.

Siegel was named chairman and chief executive of Reston, Va.-based Gate Gourmet Group in 2004. Before that he was president, chief executive and a member of the board of US Airways Group Inc. and its airline operating unit. He was also chairman and CEO of Avis Rent A Car System. Siegel was CEO of Gate Gourmet Group Inc. and US Airways Group Inc. and he’s been on the San Carlos airline’s board since last year.

Aviation industry veteran David N. Siegel, the former CEO of Gate Gourmet Group Inc. and US Airways Group, Inc., has been named president and CEO of XOJET, one of the world’s fastest growing private aviation companies. Mr. Siegel has been a member of XOJET’s board of directors since 2007. Having successfully led the company since its inception two years ago, Paul Touw, the company’s founder and chief architect, will take on the role of executive chairman, strengthening the leadership team as the company enters an exciting new phase of growth.

“We are enormously excited to have Dave Siegel join our team as chief executive,” Mr. Touw said. “As a member of the XOJET board, Dave and I have become close friends and I have grown to admire the leadership skills that have made him one of the aviation industry’s most well-respected executives. He is a world class CEO with a wealth of experience managing companies, from start-ups to multi-billion dollar commercial airlines to global transportation enterprises. We are both humbled and excited by his decision to join XOJET as we build on our significant accomplishments and look toward the great future ahead of us as we continue to change the way people fly private.”

“XOJET is at a unique inflection point in its short, but stunningly successful history,” said Mr. Siegel. “The company is poised for dynamic growth in a market segment demanding air travel experiences distinguished by superior customer service and outstanding operations. I am excited to join Paul Touw and the rest of the team to execute on a strategic plan destined to secure XOJET’s future as the nation’s premier private aviation company.”

“Through our unique hybrid business model that combines private jet ownership, leasing and on-demand travel with a singular focus on providing outstanding customer service, XOJET has emerged as an industry leader in each of these categories,” continued Mr. Touw. “More importantly, XOJET has set a new standard for what private jet travel should be – an experience that is personal, seamless and stress-free.”

“Having recently secured $2.46 billion in financing, the company is now well-poised to execute our expansion strategy and capitalize on the rapidly growing demand for private jet travel,” he added.

Mr. Siegel, age 46, was named chairman and chief executive officer of Gate Gourmet Group Inc., the world’s largest independent airline catering and logistics provider, in 2004. Under his leadership, the company underwent an operational and financial restructuring that tripled enterprise value. He also oversaw a strategic growth plan to build a best-in-class portfolio of in-flight products and services through acquisitions and investments resulting in the 2008 formation of gategroup, the umbrella brand for 11 aviation services companies. Prior to Gate Gourmet, he was president, chief executive and a member of the board of US Airways Group, Inc. and US Airways, Inc., the airline operating unit. Before that, he was chairman and CEO of Avis Rent A Car System, Inc.

Earlier in his career, Mr. Siegel served in various senior management roles at Continental Airlines and Continental Express. As CEO of Continental Express, he negotiated the largest aircraft order in regional airline industry history for 275 jets as the launch customer for the Embraer 145/135 regional jet program – part of Continental Express’ ambition growth plan that produced five-fold revenue growth from approximately $200 million to more than $1 billion within only a few years. He also previously served as director of corporate planning at Northwest Airlines. A magna cum laude graduate of Brown University, he earned a master’s degree in business administration from Harvard Business School.

David N. Siegel

David N. Siegel was named chairman and chief executive officer of Gate Gourmet Group Inc. on June 8, 2004. Gate Gourmet is a global airline catering and logistics provider that had $2 billion in revenue in 2006 and employed 20,000 employees in 25 countries. Under Siegel’s leadership, Gate Gourmet initiated and successfully concluded an out-of-court operational and capital restructuring program with enterprise value tripling during the restructuring period. With operations stable and financial health secure, the company has implemented a growth plan to build a best-in-class portfolio of inflight products and services through strategic acquisitions and investments. These include deSter Holding BV of Amsterdam, the world’s premier source of airline passenger contact and comfort items, which also owns Supplair, the innovative supplier of packaged airline meals, as well as a strategic investment in Pourshins, a leading-edge fourth-party logistics service provider (4PL).

Previously Siegel was president, chief executive and board member of US Airways Group, Inc., and US Airways, Inc., the airline operating unit. During his tenure at the airline he led the company through a critical restructuring, securing necessary cost cuts and new financing to launch its turnaround plan. Prior to joining US Airways in 2002, Siegel was chairman and chief executive officer of Avis Rent A Car System, Inc., a subsidiary of Cendant Corp. His extensive experience in the airline industry includes seven years at Continental Airlines in various senior management roles, including president of its Continental Express subsidiary, where he negotiated the largest aircraft order in the regional airline industry as the launch customer for 275 Embraer 145/135 regional jets.

At Continental Airlines, he also served as senior vice president of planning and scheduling, where he played an instrumental role in Continental’s financial and operational turnaround. Siegel joined Continental as vice president of corporate development. Prior to Continental, Siegel served as director of corporate planning at Northwest Airlines.

Before joining Avis, he held executive positions at Budget Group and eVolution Global Partners, a corporate venture capital firm. He began his career as a consultant at Bain & Co.

Siegel earned a master’s degree in business administration from Harvard Business School and a bachelor of science degree, magna cum laude, in applied mathematics-economics from Brown University.

Paul Touw

Paul Touw is a successful entrepreneur with a track record for developing new markets by discovering greenfield opportunity to eliminate operational inefficiency. As an executive with optimization technology leader Rasna, he helped position the company for its successful merger with Parametric Technology Corporation. Mr. Touw then conceived of the idea of eliminating procurement inefficiency through software, and founded the revolutionary Ariba Inc. (ARBA) to capture and define the market. By combining the power of the Internet and robustness of enterprise software to drive business-to-business e-commerce, he positioned Ariba as the dominant business-to-business software offering since 1996, used by 75 percent of the Fortune 500, and leading to a highly successful public offering in 1999. An instrument-rated pilot and jet owner, Mr. Touw recognized dramatic inefficiencies in the operational platforms used to manage and deliver private aviation to companies and individuals.

He founded XOJET to bring operational efficiency and greater customer value to private aviation. Mr. Touw has attracted to the XOJET team leaders in the aviation, finance, and technology industries that together uniquely position XOJET to change the way that both companies and individuals access private aviation. Through operational scale, technology innovation, and a modern customer service culture, Mr. Touw has led XOJET to become the leading provider of private jet travel for frequent fliers worldwide, with the highest revenue-earning utilization of any retail operator. Mr. Touw is also on the board of the Air Charter Safety Foundation, and was recognized as a “Who’s Who in Silicon Valley” in 2007.

About XOJET

Founded in 2006, XOJET has quickly become one of the world’s fastest growing private aviation companies, built on a unique business model that combines private jet ownership, membership and on-demand travel and a singular focus on providing the highest level of customer service at every point of the client’s experience. Backed by TPG, a leading global private investment firm with over $60 billion of capital under management, XOJET recently secured $2.46 billion for fleet expansion.

XOJET operates an all-new fleet of Cessna Citation X planes – the fastest civilian aircraft available, and took delivery of its first Bombardier Challenger 300 this month. The company has fewer members per jet in its Fleet Exchange Membership program than competitors, providing for increased program flexibility and unprecedented customer satisfaction. Its award-winning, in-house safety and maintenance program rivals the world’s best commercial airlines, having earned the highest ranking in four key categories – more than any other operator – from Aviation Research Group. XOJET’s fleet is expected to reach 128 aircraft worth $3.1 billion by 2012.

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