Deal for 10 sites in Belgium, Ireland and the UK brings expansion aims nearer to reality
Signature Flight Support has achieved part of its goal of European expansion through the acquisition of the 10 fixed-base operations (FBO) of ground handler Execair.
BBA Aviation Services, UK owner of Signature, last week took over the FBO business of logistics specialist John Menzies for £11.75 million ($21.6 million). The deal for eight bases in the UK, plus sites in Dublin and Charleroi Brussels South airports is a significant step in the world's largest FBO chain's ambition in Europe, says BBA Group chief executive Roy McGlone.
The group has facilities in France at Paris Le Bourget and in the UK at London Luton and Southampton and started construction of a new terminal in Toulon, southern France in March. "With the acquisition of Execair we are making progress in making Signature a global brand," says McGlone.
The company aims to add a further four FBOs in Europe by the end of this year, says McGlone, with airports in France, Italy and Germany in its sights.
Signature also has plans to expand its presence in South-East Asia, where it currently only has a minority investment in the business aviation terminal at Chek Lap Kok airport in Hong Kong. "Business aviation is still a young market in the Far East, but we need to position ourselves for the growth," says McGlone.
Last year Execair reported an operating profit of £700,000 on a turnover of £7.9 million and McGlone says Signature expects to maximise its return on its investment in "year one". Menzies says it disposed of the business to focus on its core aviation concerns of cargo handling and distribution.
Patrick Macdonald, Menzies' chief executive, says: "The integration of Execair into a specialist operator is best for the business and its employees."
JUSTIN WASTNAGE / LONDON
Source: Flight International
