On the Record with
ROY McGLONE, CEO, BBA GROUP plc

BBA's Signature FBO to Support NetJets

BBA Group plc, parent company of the Signature FBO chain, has signed a multi-million-dollar agreement with Executive Jet, Inc. to become its exclusive fuel and ground support services supplier at all 50 airports served by Signature's Flight Support Operations facilities throughout the U.S., Europe and Asia.

The deal also covers engine overhaul, major inspection and repair support through BBA's Dallas Airmotive. The Texas-based company will be responsible for Executive Jet's fleet of Hawkers and Citations at Dallas, and at its nine Regional Turbine Centers worldwide.

Executive Jet and its fractional arm NetJets are by far the largest operators of private business jets in the world, currently managing 370 airplanes, with another 574 on order.

BBA's achievements in the last six years have taken its annual sales from $300 million in 1995 to $1.4 billion this year. This includes the recent acquisition of Aircraft Services International Group (ASIG) for $137.9 million.

"This is a transforming deal for us," commented BBA CEO Roy McGlone. "In one step we have moved from a niche player in this area to become fourth-ranked in the world in commercial aviation services. ASIG is one of the world's largest providers of commercial airfield services, and will further broaden BBA's expansion."

"We are already the number one corporate FBO provider in the world under our Signature brand, with an 80% share in the USA," he continued, "and a leader in independent aero engine overhauls. The ASIG acquisition provides us with additional services, capacity and, most importantly, the key airport locations."

All BBA Aviation's commercial airline activities will operate under the ASIG brand, and are expected to gross over $300 million in annual sales. BBA recently announced the acquisition of specialist aircraft parts supplier Barratt Aviation of Augusta, GA, in a deal worth $25 million. That acquisition is expected to add to earnings in its first year.

Since BBA bought Signature in 1995 it has been "bolting-on" new acquisitions and disposing of non-core businesses at an astounding rate. Last year the group spent $150 million growing its businesses in Europe. In the UK it acquired Lynton Aviation with bases at London-Luton, Southampton, Denham and Blackbushe airports, and Europe's foremost commercial flight training operator Oxford Air Training, along with an FBO at Paris-Le Bourget. BBA is now waiting to finalize a deal with the Lider FBO chain in Brazil, taking an initial 25% stake. It is also looking at Asia, but won't move until it can see more potential.

This year saw Gulfstream sell its engines and overhaul business to BBA for $43 million, while BBA's RMC airframe and avionics business went to Gulfstream. "We are always looking for new engine approvals for our engine overhaul business, and acquired the Honeywell TFE731 approval, amongst others, from this deal," McGlone told Show News.

"We would like to develop pilot training more, and also areas such as route planning. We intend to extend our corporate and commercial services globally," he said.

- Mike Vines