Jet Aviation has announced that they have been sold, pending
antitrust clearance, to the Permira Funds a leading international
private equity specialist. Ending several years of speculation, the
Zurich based operator of business jet services has finally accomplished
what had long been expected: the sale of the Hirschmann family business
to outsiders.
As
early as 2000 the sale of Jet Aviation had been expected by employees
as well as by industry insiders. Indeed, Jet Aviation management had
been marketed openly throughout 2001 by Goldman Sachs, but the sale was
cancelled when a suitable buyer was not found and the terrorist attacks
put a further drag on an already downturning economy. Still, rumors of
the sale of the company persisted and heated up recently with
speculation that one of Warren Buffet's companies, i.e., Gulfstream
Aerospace, may have been interested in the company's maintenance
facilities.
Currently, Jet Aviation is a Zurich-based concern
employing 3500 people worldwide. US operations remain strong with the
bulk of the employees working out of Teterboro [NJ] Airport.
Even
with the probable sale of the company to Permira, speculation is
persisting as to what will become of the company after the sale is
completed. Some industry leaders believe that the company is more
valuable for its parts than as a single entity. Thus, parts of the
company could be sold off and a scaled down Jet Aviation might remain in
place. Areas of the company thought to be susceptible to a sale
include:
1. US Maintenance Facilities. With prime locations
at Bedford, Teterboro, West Palm Beach, and Dallas the American
facilities are capable of providing expert airframe support to just
about any type of business aircraft.
2. Completion Centers.
Some or all of the company's award winning completion centers are
thought to be highly marketable. From the Boeing BBJ to the Gulfstream
550, and to the Sikorsky S-70A aircraft delivered "green" to Jet
Aviation facilities are outfitted with state of the art interiors.
3. FBOs.
Jet Aviation's group of fixed based operations which provide domestic
and international flight handling, line maintenance services, refueling,
passenger and crew transportation, catering and hotel accommodations
and immigration and customs services are an important asset for the
company. Indeed, the Dubai facility -- Jet Aviation's newest FBO -- is
considered by some to be unmatched in the industry.
4. Jet Professionals.
Founded in 1983, Jet Professionals -- an aviation personnel service
provider -- became part of Jet Aviation as part of the acquisition of
K-C Aviation Transportation Services in 1996.
5. Aircraft Management.
Over 160 aircraft worldwide are managed by Jet Aviation including more
than 50 in the US alone. Many of these aircraft are also available for
charter. US operations could be sold to Jet Aviation's strategic
partner, New World Jet Corporation, a FAR Part 135 charter certificate
operator.
