Gama Aviation Plc and BBA Aviation Plc have announced the merger of their US aircraft management and charter businesses. The merger of the two British-owned companies will see the creation of Gama Aviation Signature Aircraft Management, which will now manage a fleet of over 200 aircraft. According to Gama's press release, the entity will be the largest aircraft management business in the US.
Prior to the merger, BBA Aviation managed ninety aircraft through its wholly owned subsidiary Landmark Aviation (Houston Hobby). It also provides aircraft support and aftermarket services through a suite of businesses, although these remain separate from the new company.
In order to satisfy requirements of the US Department of Transportation (DOT) regarding foreign ownership and control of aircraft, BBA Aviation had been looking for a US partner since it made the purchase of Landmark in February 2016. The companies have created GB Aviation Holdings LLC, which is split equally between AL!GMU, and BBA Aviation through its transfer of Landmark into the entity.
Gama Aviation LLC will manage the new brand as it trades under Gama Aviation Signature Aircraft Management. Commenting on the merger, Gama CEO Marwan Khalek, says "The enlarged business creates a market leader and an unrivalled platform for growing our share of this massive business aviation market. The combination diversifies our customer base and extends our network coverage nationally whilst simplifying the financial arrangements with our US partners".
Gama Aviation Plc also offers maintenance services, and expects growth opportunities from access to the larger fleet. Speaking with Corporate Jet Investor, Khalek acknowledges that there are opportunities to cross-sell between the companies' various arms, but says "we will always act in the best interests of customers and any business has to be won on merit."
