On the Record with ROY McGLONE, CHIEF EXECUTIVE OFFICER,
BBA GROUP
BBA Aviation Services has a $400 million war chest with which
to expand its Signature Flight Support FBO network, and expects
to make an announcement of a European acquisition in the next
six to nine months, according to BBA Group CEO Roy McGlone.
At the official opening of Signature's London-Luton mega-hangar
in September, McGlone and Signature president and CEO Beth Haskins
underlined their continued hunt for further FBO acquisitions,
both within the USA and "outside." Currently Signature
has 56 branded FBOs around the world. Their plan for the USA is
to increase the numbers of FBOs in the Signature chain from 42
to 55-60 within the next 10 years. "An FBO with a maintenance
shop will not preclude us from buying it," said McGlone.
Noted Haskins, "The problem in Europe is that new players
are trying to get their first foothold into the FBO market and
competing with existing FBO chains who also want to buy to expand.
There are a lot of companies in Europe who just want to plant
a flag in the ground, creating a presence but not a fully-fledged
FBO.
"We are looking at half a dozen European cities where we
would like to have our own fully fledged FBO presence, or possibly
with a partner. Our first choice is always outright ownership,
but opportunities are few and far between so we are trying not
to narrow our scope to the point where we won't look at any type
of partnership." She cited the joint venture between PrivatAir
and Swissport Executive in forming Privatport at Geneva as a good
example of the type of operation with which Signature would be
happy.
"The new FBO sites will be at commercial centers in Europe,
and this is being customer led. Every place we're looking at is
in 'Old Europe,' but there is a market opening up farther east
[the former Communist bloc countries] which is not ready yet.
Their time will come in the next two to five years and we are
trying not to be blind to that," said Haskins.
Space in Signature Flight Support's newly opened 73,000 square-foot
hangar at Luton was virtually sold out to contracted customers
just a couple of months after completion. It is so successful
that, according to Trevor King, Signature's Luton FBO supremo,
he is already looking for more land at the airport on which to
build another hangar.
The hangar is the largest in Signature's world network. It can
house up to six BBJ-sized aircraft, has a storage area of nearly
6,000 square feet and boasts two floors of office accommodation
totaling around 12,000 square feet.
Signature's Luton aircraft movements are expected to reach 14,000
this year, which is about 1,000 up on last year's 5% increase,
said King. "Fuel sales have been hit though, as fewer large
corporate jets uplifted," he noted.
Signature's delayed green field start-up FBO at Toulon-Hyères,
between Marseilles and Nice in the south of France, continues
to be held up by local Chamber of Commerce planning and tendering
procedures.
