Report shows why business jet operators do not get investment


A new report looking at the ownership of business aviation operators has been published. The findings explain why little business jet operator consolidation happens.

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.