Signature Mulls $4B Acquisition by Private-equity Group
UK-based Signature Aviation—the parent company of Signature Flight Support, which operates the world’s largest FBO network—could soon be sold to private-equity firm Blackstone Infrastructure Advisors and Blackstone Core Equity Management Associates for approximately $4 billion, according to a statement released today by Signature. Blackstone has more than $580 billion in assets under management.
This latest overture, the sixth from Blackstone to Signature since February, equates to a possible cash offer of $5.17 per share. According to a note issued today to its investors in response to recent share increases as word of the offer leaked, Signature stated, “Having considered the terms of the Blackstone proposal, the board of Signature has indicated to Blackstone that it would currently be minded to recommend a firm offer for Signature at the price set out in the Blackstone proposal.”
Signature achieved preeminence in the FBO industry following its 2015 acquisition of then-rival Landmark Aviation from investment fund manager The Carlyle Group, and its network currently consists of more than 200 locations in 27 countries.
If completed, the deal could be a “game-changer,” according to FBO business consultant Steve Dennis, chairman of Aviation Resource Group International. “Since its inception following WWII, FBOs large and small have been challenged to attract capital,” he said. “This scale of investment by private equity will further validate and enhance the value of the FBO industry.”
EBAA Sees ‘Clear Second Dive’ in Bizav Ops in November
Europe saw a “clear second dive” in traffic in November with business aviation operations falling 26 percent year-over-year as lockdown measures strengthened in various European states, according to EBAA.
In its recently released November Traffic Tracker, EBAA reported that business aviation operations in Europe were down 24 percent cumulatively over the past year, with the worst periods between March and June and peaking at a 76 percent year-over-year plunge in April. In the third quarter, however, traffic appeared to rebound to just 0.7 percent down year-over-year in August.
But traffic numbers have slid each month since and jumped from a 16.6 percent dip in October to 25.7 percent in November. The trends have not been uniform throughout Europe, EBAA noted. The Spanish market appears to be recovering since September, when it declined by 32 percent year-over-year, to down 11 percent in November. In Italy, though, traffic has eroded from just 2 percent down in September to 36 percent off in November. In the UK, traffic had improved to just a 7 percent year-over-year slide by August but had dropped to 44 percent in November. EBAA added that traffic figures in the UK and Italy were well below the European average.
Epic Aircraft has announced two support partnerships for its new E1000 GX turboprop single. The OEM has selected Frasca International to build the first simulator for its flight training program. It will be constructed around an authentic Epic cockpit including the Garmin G1000 NXi avionics suite and GFC 700 automatic flight control system. It will provide, among other features, a three-channel visual system with a 220-by-58-degree spherical enclosure, custom visual databases, and an instructor operator station, and is expected to be installed at Epic’s flight training center in Bend, Oregon, by the fourth quarter of 2021.
“We expect to shift the majority of initial and recurrent training hours from the airplane to the simulator, which will tremendously reduce costs and greatly enhance our ability to realistically simulate emergency procedures and system failure scenarios,” said Doug King, the airframer’s CEO. “That means our customers will be better trained and better prepared to safely and confidently operate in this high-performance environment.”
Epic also announced it will work with aviation software and solutions provider ATP, using its Flightdocs platform for maintenance tracking and electronic logbooks across the E1000 GX fleet, and the ATP Aviation Hub for distribution of technical publications such as maintenance manuals, wiring diagrams, and illustrated parts catalogs. All E1000 GX aircraft will include subscriptions to both fully-integrated platforms.
Covid Package To Renew Air Carrier Relief
The House and Senate are poised to renew air carrier payroll support and adopt certification reforms under the massive $900 billion coronavirus relief bill that is expected to come under consideration in concert with a government-wide spending package. Following yesterday’s announcement that an agreement had been reached on coronavirus relief, the House this afternoon is anticipated to consider that aid package, paired with the omnibus Fiscal Year 2021 spending bill. Senate action is anticipated to follow, potentially later today.
The relief package is expected to include $15 billion for renewal of the Payroll Support Program (PSP) for air carriers, $1 billion for air carrier contractors, and $2 billion for airports and airport concessionaires.
As for certification reforms, the final package is anticipated to include a measure that meshes together some of the reforms included in separate bipartisan bills introduced by House Transportation and Infrastructure Committee and Senate Commerce Committee leaders in recent months. Those bills are designed to address issues raised over the past 20 months in the various reviews and investigations surrounding the Boeing 737 Max crashes.
The compromise certification reform measure is said to follow many of the recommendations and expert reviews that came in the aftermath of the crashes. Inclusion of the measure, however, comes as the Senate released a highly critical report on the recertification of the Boeing Max.
Gogo’s Avance L3 air-to-ground airborne connectivity system has surpassed 500 business aircraft installations, a milestone reached in less than three years since it was launched. Gogo has shipped nearly 700 Avance L3 systems to date and said more than 120,000 flights have been flown with the systems onboard.
"We have seen demand for inflight connectivity increase across the board, but we're seeing significant growth on smaller aircraft,” said Sergio Aguirre, president of Gogo Business Aviation. “Despite the pandemic, we've seen continued installations of the Avance L3, and to reach 500 aircraft online in this environment is a remarkable achievement.”
Aguirre added that the demand “speaks volumes” about the importance of connectivity to operators. “It's no longer considered a luxury—it's now a necessity for most, even on smaller aircraft."
The Avance L3 is designed as a lightweight option that provides the benefits of the Avance platform but can be installed on a range of business aircraft, including turboprops and light jets. Avance L3 can be connected to the Gogo Biz data network for 3G service and enables passengers to access email, send text messages, and make voice calls. Further, the system is equipped with Gogo Vision 360 for unlimited streaming of on-demand movies, television programming and news, digital magazines, and a 3D moving map.
In all, 1,650 aircraft are flying with Gogo Avance L5 or L3.
Héli-Union Signs Up for Airbus H160s
Long-time Airbus Helicopters customer Héli-Union is purchasing two new multi-mission H160 medium twins. Héli-Union currently operates a mixed model fleet of approximately 20 Airbus helicopters, maintains a wide range of Airbus helicopters for third-party civil and defense operators, and has more than 60 years’ experience supporting them around the world including pilot and technician training. Héli-Union also offers customers turnkey solutions for aircraft acquisition and deployment.
“We are excited to be one of the first customers to onboard the H160, which will expand our fleet of 40 helicopters. We believe this program will have a great future in both civil and defense sectors and are delighted to be an actor of its growth,” said Patrick Molis, Héli-Union CEO.
The H160 is designed as a multi-mission helicopter aimed at offshore transportation, emergency medical services, search and rescue, and other public service operations. It incorporates a variety of noise-reducing technologies, including Blue Edge blades and a large, shrouded Fenestron tail rotor.
“The H160 not only raises the bar in terms of safety, thanks to its numerous pilot assistance features, but its reduced fuel consumption brings much needed operational competitiveness, as well as a lower carbon footprint, to the market,” said Airbus Helicopters CEO Bruno Even.
California FBO Air 7 Joins Air Elite Network
Air 7, an FBO at California’s Camarillo Airport, is the latest to join the World Fuel-sponsored Air Elite Network. One of four service providers on the field, it features a 5,000-sq-ft, two-story terminal with a large lobby and a more private passenger lounge, business center, and an eight-seat A/V-equipped conference room. Upstairs, the Club7 lounge with a balcony overlooks the ramp and runway. For crewmembers, there is a lounge downstairs with recliners and a snooze room upstairs, both with shower facilities. It has 54,000 sq ft of hangar space, which can accommodate the latest big business jets.
“Air 7 is excited to be joining the Air Elite Network of exceptional FBOs, and [we] will carry on that great tradition of world-class customer service,” said Bob Oliver, the FBO’s CEO.
This latest addition brings the network to 76 locations globally, each of which must meet and maintain a number of airport, facility, and service quality standards to qualify for membership, as well as undergo quality audits to maintain their status. The network is guided by a member-run board, which is elected by the network. The newest addition to that board is Ashley Bouzianis, marketing director of Standard Aviation in St. Thomas, and 2019 recipient of the Pegasus Sapphire Business Aviation Award for Woman of the Year in the Caribbean.
Aviation Safety Question of the Week
Provided by
What is the difference between hazard and risk?
A. Hazard and risk are difficult to differentiate from one another. In general, pilots should mitigate them both.
B. Risk is something that has the potential to cause harm, whereas hazard is the likelihood of that harm being realized during a specified amount of exposure.
C. Hazard and risk are the same, it is just that risks can be assessed using a risk assessment tool, but hazards are more theoretical so are difficult to assess.
D. Hazard is something that has the potential to cause harm, whereas risk is the likelihood of that harm being realized during a specified amount of exposure.
Motive Learning Offering Covid-19 Compliance Training
Melbourne, Florida-based Motive Learning has developed a Covid-19 safety compliance training program that provides general health guidelines based on the recommendations of the U.S. Centers for Disease Control and Prevention (CDC). The training specialist, which marked its debut at NBAA events with its virtual exhibit at VBACE this year, is offering the 30-minute online Wellness in the Workplace program for free when bundled with qualifying purchase.
The program, which meets the CAL/OSHA Covid-19 Employee Training requirement for employers not covered by the aerosol transmissible diseases (ATD) standard, discusses individual responsibilities, characteristics of infectious diseases proliferation, personal strategies for maintaining a healthy immune system, methods for limiting exposure in group settings, managing mental heal and work stress, and the importance of health safety protocols such as social distancing and contact tracing.
In addition, Motive Learning is able to provide company-specific customized guidance. The course accompanies the company’s MotiveLMS Qualification Management System, which monitors employee qualifications daily to ensure compliance with Covid-19 precautions and other training competencies.
While new to NBAA events, Motive Learning is established within the business aviation industry, providing its training and compliance programs to about one-third of the leading ground-handling operations, the company said. Its MotiveLMS (learning management system) is designed to help airport safety, ground handling, fueling operations, and customer service operators manage growing and changing workforces.
AINalerts News Tips/Feedback: News tips may be sent anonymously, but feedback must include name and contact info (we will withhold name on request). We reserve the right to edit correspondence for length, clarity and grammar. Send feedback or news tips to AINalerts editor Chad Trautvetter.
AIN Alerts is a publication of The Convention News Company, Inc., 214 Franklin Avenue, Midland Park, New Jersey. Copyright 2020. All rights reserved. Reproduction in whole or in part without permission is strictly prohibited.
