Report shows why business jet operators do not get investment
Key findings of Corporate Jet Investor’s 2012 Who owns business jet operators research:
- The business jet market is extremely fragmented
due to regulatory limits on foreign ownership and the few barriers to entry it
takes to launch - Although regulatory burdens are increasing, many
founders (pilots or mechanics) are prepared to cope with these because they are
committed to running aviation businesses – we call these aviation entrepreneurs; - Most operators are privately owned and run by
owner managers that are not looking to sell; - Private equity companies and high net worth
individuals have shown interest in the sector with deals likely to happen in
2013 and 2014 as the market recovers. However, there is a big spread between
what investors want to pay and what owners think their business is worth; - Some consolidation has happened but new
start-ups outweigh the number of mergers and this will continue to happen as
people’s passion for running an aircraft manager outweighs the (significant)
risks in starting-up.
The full 2,500 word report is available by clicking here.
TopicsBusiness Aviation News