Takeover by Irish financier gives Swiss services company the 'muscle' to open new bases around the world
ExecuJet Aviation Group is to use a cash injection from Irish financier Dermot Desmond to expand into financial services and open new bases around the world. In exchange he will take a majority stake in the Zurich-based business aviation services company and become its chairman. The rest of the management team stays in place.
Niall Olver, ExecuJet's chief executive and current majority owner, says Desmond will "provide the financial muscle for us to expand our product offering and geographically". The company - which represents Bombardier in 35 countries and Grob outside North America, and manages a fleet of more than 100 aircraft - plans to launch a financial services arm at the EBACE show in Geneva next week. "We want to offer commoditised solutions, rather than just hardware," says Olver. Among the territories being targeted is Australia, where ExecuJet plans to open a second base shortly. It has full-scale maintenance and fixed-base operation facilities in Dubai, Johannesburg, Sydney and Zurich, as well as several smaller outlets.
The acquisition does not give Desmond equity in German airframer Grob Aerospace, bought by a consortium headed by Olver last year from the privately held Grob industrial group, although the two businesses will continue to have a "close relationship".
While ExecuJet will continue to represent the manufacturer of the SPn business jet outside North America, Grob will itself open a US distribution network later this year, with a base in Portsmouth, New Hampshire, and four regional sales centres. Maintenance will be carried out by Landmark Aviation and Stevens Aviation.
Desmond is one of Ireland's foremost entrepreneurs and the former owner of London City airport, which he acquired in 1995 for £23.5 million ($46 million) and sold last year for a reported £750 million.
Source: Flight International
