With ExecuJet, Luxaviation is halfway along Patrick Hansen’s plan
After just five years in business aviation, Patrick Hansen is now halfway towards his plan.
The CEO of Luxaviation, which has bought much larger rival ExecuJet, wants to build a company that manages 500 business jets.
Today he got halfway.
Luxaviation now has more than 250 business aircraft under management, 1500 employees and staff in 22 countries. But Hansen is already looking for his next deal.
“We are always looking at other operators,” says Hansen. “It is part of our culture. This market needs consolidation and we have not reached our target yet.”
Hansen is not the only person who thinks that the market needs to consolidate. Some 75 per cent of US operators and 80 per cent of European operators manage less than five aircraft,
Most of the activity is centered on larger deals like – Luxaviation and ExecuJet, Gama Aviation buying Hangar 8 and Directional Capital with FlexJet. This is partly because buyers are focusing on bigger deals (small acquisitions take as much effort as large ones) but also, most importantly, because many smaller operators love what they are doing and do not want to sell.
The amount that Luxaviation has paid has not been disclosed but owners Dermot Desmond and ExecuJet chairman Niall Olver seem to be happy. “We have paid a multiple partly based on growth, not just earnings,” says Hansen. Olver is leaving ExecuJet but will stay on as an adviser.
Before ExecuJet, Luxaviation focused on European operators like Belgium’s Abelag, France’s Unijet and the UK’s London Executive Aviation. ExecuJet gives Hansen a platform that will allows Luxaviation to target operators in many other countries. Luxaviation has also signed an agreement with China Minsheng Investments – which owns Minsheng International Jet and Business Aviation Asia.
As Hansen moves on to the next stage of his plan we are going to be hearing the name Luxaviation a lot more from now on.