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Owners consider sale of Oxford Aviation Academy
Mon, 24 Oct 2011
By Hanna Sharpe
The main shareholder of Oxford Aviation Academy, British buy-out group Star Capital Partners, is mulling a sale of the global business.
Star Capital has received several expressions of interest in the pilot training and leasing provider business over the past few months. It is understood that Credit Suisse has been approached with the task of possibly selling the business.
A decision whether to conduct an auction for OAA - which could be worth over £500 million - will be made by the end of this year.
Airlines and airline service businesses from China, Europe and the US have put forward their expressions of interest in the academy. OAA's operations in Asia have attracted particular attention from potential buyers.
OAA was formed in a merger between UK and Hong Kong-based GE Commercial Aviation Training and Scandinavian SAS Flight Academy, which took place five years ago.
After acquiring Oxford Aviation Training, the firm was renamed Oxford Aviation Training in June 2007. US firm General Electric has a stake holding of less than 20 per cent.
Having been hit by the economic downturn three years ago, OAA has been restructured by its owners. Since the move it has rebounded strongly. Today it has over 600 staff and operates 105 training aircraft across the globe. Its earnings before interest tax, amortisation and depreciation have been estimated to be around £30 million.
For a company that relies so heavily on airline connections to enable it to sell its overpriced pilot training, this news makes me wonder whether they know that the days of third party trained so-called 'cadetships' are numbered and they want to get out while the going is good!!
Rumour has it that they are about to receive a significant blow to their Australian operation!!
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