After years of anticipation, Jet Aviation, a prominent Zurich-based provider of business jet services, has been acquired by the Permira Funds, a leading international private equity firm. This acquisition concludes a period of speculation surrounding the Hirschmann family business’s future ownership. The sale requires pending antitrust clearance.
Rumors of Jet Aviation’s sale had circulated since 2000, with active marketing efforts led by Goldman Sachs in 2001. However, a suitable buyer wasn’t identified, and the economic downturn following the terrorist attacks stalled the process. Despite this, speculation persisted, with recent suggestions that a Warren Buffett company, possibly Gulfstream Aerospace, might be interested in Jet Aviation’s maintenance facilities.
Jet Aviation currently employs 3,500 people worldwide, with a significant portion of its workforce based at Teterboro Airport in New Jersey, demonstrating the strength of its US operations.
The acquisition by Permira has sparked discussions about the company’s future structure. Some industry analysts believe that Jet Aviation’s individual components might be more valuable than the company as a whole. This could lead to the sale of specific divisions, potentially resulting in a smaller, restructured Jet Aviation. Key areas that may be subject to sale include:
1. **US Maintenance Facilities:** Located in prime locations such as Bedford, Teterboro, West Palm Beach, and Dallas, these facilities offer comprehensive airframe support for a wide range of business aircraft.
2. **Completion Centers:** Jet Aviation’s completion centers, renowned for their award-winning interiors, are considered highly desirable. They outfit aircraft ranging from Boeing BBJs and Gulfstream 550s to Sikorsky S-70A helicopters with state-of-the-art designs.
3. **FBOs:** Jet Aviation’s network of fixed-base operations provides essential services such as flight handling, line maintenance, refueling, passenger and crew transportation, catering, hotel accommodations, and customs and immigration assistance. The Dubai facility is particularly well-regarded within the industry.
4. **Jet Professionals:** Founded in 1983, Jet Professionals, a provider of aviation personnel services, became part of Jet Aviation through the acquisition of K-C Aviation Transportation Services in 1996.
5. **Aircraft Management:** Jet Aviation manages over 160 aircraft globally, including more than 50 in the US. Many of these aircraft are also available for charter. The US operations could be sold to Jet Aviation’s strategic partner, New World Jet Corporation, a FAR Part 135 charter certificate operator.
In conclusion, the sale of Jet Aviation resolves one long-standing question but simultaneously raises new ones. In the dynamic world of business aviation, speculation remains a constant.