BBA Aviation and Gama Aviation have announced the merger of their US-based aircraft management and charter businesses.
With around 200 airplanes under management, the combined entity, Gama Aviation Signature Aircraft Management, will be one of the world’s largest aircraft management and charter businesses, supported by the exceptional and market-leading Signature Flight Support global FBO network.
Simon Pryce, Chief Executive of BBA Aviation, said: “This agreement marks another milestone for BBA Aviation, creating a leading charter and fleet management company, whose scale will benefit both the Group and our customers. We look forward to working with our partners at Gama Aviation to develop and grow the company in the years ahead.”
Marwan Khalek, Chief Executive of Gama Aviation Plc said: “We are delighted to announce this exciting deal and to be teaming up with BBA Aviation in the US. The enlarged business creates a market leader and an unrivalled platform for growing our market share of this massive business aviation market. This combination diversifies our customer base and extends our network coverage nationally whilst simpliflying the financial arrangement with our US partners.”
BBA Aviation acquired its aircraft maintenance and charter services business through the acquisition of Landmark Aviation, completed in February 2016, and which was placed into a trust until a suitable majority partner could be found to satisfy the requirements of the US Department of Transportation’s foreign ownership and control restrictions, which this transaction achieves.
- Creates a market leading platform for Gama Aviation and BBA Aviation to expand their presence in US, the single biggest business aviation market in the world.
- Provides national geographical coverage with BBA’s predominantly West Coast based fleet complementing Gama Aviation’s currently East Coast centric business, creating a national network to enable further growth in this highly fragmented market.
- Extends and diversifies Gama Aviation’s client base.
- Expected to deliver significant additional growth for Gama Aviation’s US Ground business through the ability to cross sell maintenance services to the additional aircraft now under management.
- Expected to deliver significant cost synergies of not less than $2m over two years.
- Expected to be earnings neutral in 2017 and 2018 and earnings enhancing thereafter, before the benefits of cross selling maintenance services into the enlarged fleet.