BBA Aviation PLC Joint Venture (1258T)
January 03 2017 - 1:00AM
UK Regulatory
TIDMBBA TIDMGMAA
RNS Number : 1258T
BBA Aviation PLC
03 January 2017
3 January 2017
BBA Aviation creates market-leading aircraft management and
charter company with Gama Aviation
BBA Aviation plc ("BBA Aviation", "the Group"), a market-leading
provider of global aviation support and aftermarket services, is
pleased to announce the merger of its aircraft management and
charter business with Gama Aviation's US aircraft management
business.
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, 10 million m(2) of hangars and an
extensive fixed and mobile line maintenance, Aircraft on Ground and
engine support capability.
Commenting on today's announcement, 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. The
combination diversifies our customer base and extends our network
coverage nationally whilst simplifying the financial arrangements
with our US partners."
For further information please contact:
BBA Aviation plc
+44 (0) 20 7514 3999
Mike Powell, Group Finance Director
Jemma Spalton, Head of Communications
& Investor Relations
Tulchan Communications
+44 (0) 20 7352 4200
David Allchurch
Doug Campbell
Notes
BBA Aviation acquired its aircraft management 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 U.S. Department of Transportation's foreign
ownership and control restrictions, which this transaction
achieves. While in trust, the aircraft management and charter
services business has been accounted for as an associate via the
equity method with cash flows arising recognised in the form of
dividends; the same treatment will apply following completion.
BBA Aviation and GAMA Aviation are combining their US aircraft
management and charter businesses, which in the year ended 31st
December 2015 delivered profit before tax of $5.5 million and $4.3
million respectively. BBA Aviation and GAMA Aviation each have a
24.5% shareholding of the enlarged entity, reflecting the near
equal contribution of current profits by each party, and will get
additional economic benefit from common branding agreements. The
remaining 51% equity interest is owned by a small number of
individual US shareholders including the key operational
management.
Information on BBA Aviation plc
BBA Aviation plc is a leading global aviation support and
aftermarket services provider with market leading businesses and
attractive growth opportunities. BBA Aviation's Flight Support
businesses (Signature Flight Support and ASIG) are focused on
refuelling and ground handling of business and commercial aviation
aircraft. Its Aftermarket Services businesses (Dallas Airmotive,
H+S Aviation, International Turbine Service, Barrett Turbine Engine
Company, International Governor Services and Ontic) are focused on
the repair and overhaul of jet engines and the service of aerospace
sub-systems and components.
BBA Aviation's aircraft management and charter business
currently operates under the Landmark FBO and Sterling Aviation
brands, and has a fleet of around 90 aircraft.
For more information, please visit www.bbaaviation.com
Information on Gama Aviation
Gama Aviation (GMAA) is a multi-disciplinary global aviation
services company that specialises in providing support for
individuals, corporations and government agencies. Following the
reverse takeover by Hanger 8 in January 2015, Gama Aviation is now
one of the top three global players in a highly fragmented market,
with a fleet of 153 aircraft. Gama operates across Europe, the US,
the Middle East, Asia and Africa.
Gama's services can be split into two broad areas: Air and
Ground. The Air Operations include aircraft management, special
mission and charters, with Ground Services covering maintenance
services, Fixed Base Operator (FBO) operations and modification
services.
http://www.gamaaviation.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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