Mergers and acquisitions to fuel NextGen aviation – As one of the most dynamic areas of our industry, observing current trends in mergers and acquisitions can tell us a lot about the state of business aviation. Generally, mergers and acquisitions (M&A) are driven by a range of factors including the need to increase market share, reduce costs, and boost profitability. But M&A activity is also being driven by the need to gain access to new technology and resources and strengthen competitive positions in a fragmented industry.
We can see this is some mergers and acquisitions activities of recent months. West Star Aviation acquired Jet East from GAMA Aviation. West Star is a provider of MRO solutions, as is Jet East, with capabilities that also include an ‘Aircraft on Ground’ (“AOG”) mobile repair technician network, line maintenance operations, heavy maintenance facilities, and other complementary services. A highly complementary coupling. Unifi Aviation’s purchase of Up & Away Aviation brings with it a highly personalized service offering. Whereas Airshare acquiring Wheels Up’s aircraft management arm has seen it triple the size of its fleet. And Harrods Aviation’s purchase of FayAir has seen it expand its fixed-based operator (FBO) footprint to serve increasing demand at London Stansted Airport.
Mergers and acquisitions were the topic of an incredibly compelling panel discussion organized by UAS at NBAA-BACE 2023. In UAS’ The Forward Discussion panel series, we invited some of Bizav’s most prominent thought leaders to share their insight about this dynamic area of our industry. Moderated by Mike Stones, Group Editor of Corporate Jet Investor, our guest panelists were David Vanderzwaag CEO of Airhawke; Nick Copley, Founder and President of Sherpa Report; Rishi Majithia, Head of Investment at MONTE; and Richard Koe, Managing Director at WINGX.
Generally, M&A activity is the sign of a healthy but changing industry. Although many M&As are inspired by necessity, many are indicative of opportunities. This is particularly true when we consider that NextGen will drive business aviation, and companies are getting more creative in terms of technology. Sustainability is also a major impetus for M&A, with many businesses looking to accelerate their sustainability strategies. I invite you to watch the Mergers and Acquisitions Forward Discussion on the UAS YouTube channel here.
For more Executive Insight, visit UAS Blog