AvStar Aviation Services, Inc.

FBOs

AvStar Aviation Services, Inc. is currently pursuing and in negotiations to purchase several FBO’s.

Fixed Base Operators (FBOs) provide aircraft and travel related services for jets and other aircraft.

Most FBOs offer the following:
· Fuel Sales
· Hanger and Tie-down services
· Hotel and Car rental services
· Travel and Flight planning
Restocking and Clean up services
FBOs are currently a $4-5 Billion dollar industry, with approximately 5200 operating in the US.

Current Trends


  • “Big 4” operators target the corporate elite and charge significant premiums for service

    - Atlantic, Signature, Landmark, MillionAir
    - Together these operators total 180, less than 5% of FBOs in the U.S.

 



The FBO Opportunity Today


  • Private equity shops set the stage for FBO consolidation

    - Landmark is owned by GTCR Golder Rauner
    - Carlyle Group has a large portfolio of FBO assets.
    - Capstreet funded Trajen in its expansion of their portfolio from 4 to 23 FBOs subsequently selling to Macquarie for $363
       million.
  • Many benefits to consolidating FBOs

    - Economies of scale
    - Pilots attracted to consistency of services.
    - Acquisition of Independent operators is particularly appealing now.
  • The opportunity lies in aggregating the best among the vast majority of independent FBOs

Why Now?

  • Valuations have declined significantly

    - we have witnessed 50-75% decline in the past 2 years
    - The economic and credit crisis have put extreme stress on the independent ‘mom and pop’ operators
    - Fuel price spike caused many to shut down operations because of purchasing problems
  • Economics of consolidation have become increasingly more compelling

    - Market to purchase single FBO currently at a low multiple of revenue, with opportunity to sell a franchise at 8x cash flow 


MROs

  • AvStar Aviation Services, Inc. is currently pursuing and in negotiations to purchase additional MROs.

  • Maintenance Repair and Overhaul centers (MROs) provide mechanical services for jets and other types of aircraft.

  • Major & Minor Airframe Repairs

  • Cessna 200 / 300 / 400 Specialist on Staff 

  • Annual Inspections 

  • Computerized Aircraft Weight and Balance

  • Computerized Wheel Balancing

  • Engine Maintenance, Repair & Overhaul including custom installations and refurbishment. 

  • Aircraft Modifications and STC kit installations 

  • Routine Maintenance / Insurance and Accident Repairs 

  • Composite Airframe Repairs 

  • Pre-purchase Inspections / Log Book Analysis 

  • Oxygen Service / Nitrogen Service 

  • Service Parts 

  • Janitrol / Southwind Heater Service / AD compliance Inspections 

  • Dye / Flourescent Penetrant Inspection Service 

  • Aircraft Exterior & Interior Detailing Services

  • Major & Minor Airframe Repairs

  • Cessna 200 / 300 / 400 Specialist on Staff

  • Annual Inspections 

  • Computerized Aircraft Weight and Balance 

  • Computerized Wheel Balancing

  • Engine Maintenance, Repair & Overhaul including custom installations and refurbishment. 

  • Aircraft Modifications and STC kit installations 

  • Routine Maintenance / Insurance and Accident Repairs 

  • Composite Airframe Repairs 

  • Pre-purchase Inspections / Log Book Analysis 

  • Oxygen Service / Nitrogen Service

  • Service Parts 

  • Janitrol / Southwind Heater Service / AD compliance Inspections

  • Dye / Flourescent Penetrant Inspection Service 

  • Aircraft Exterior & Interior Detailing Services
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