OAT is put up for sale.

[TheBeak]

Is this a sign that there are rocky times ahead or are BBA just cashing in their chips?

[g1344304]

Correct! I am the new owner, I paid £2.67 for it. A little more than I wanted to spend but it is Oxford afterall. As of tommorrow, the course fee will not include CAA licence issue fees, accomodation and meals in order to save money..... Oh wait Ive just been informed that these items are already not included. As well as this, the school will be relocated to Tehran, Iran in order to take advantage of the good weather, cheap fuel and cheap everything. Travel, visas and jabs are not the responsibility of the school and shall be covered by the student.

In order to cut costs we will be re inventing our fleet by using some older but just as high quality aircraft (see below)

http://www.elginhistory.com/dgb/airplane.jpg

The fee for a skills assesment will rise from £195 to £1200 to cover administration costs and will take place at the school in Tehran. Good luck to all our current and prospective students!

[JetSetJ]

Hi there,

TheBeak, i am just curious where you read that OAT is up for sale?? Can you provide a link??

g1344304 very amusing indeed, but people who take the biscuit out of Oxford do need to go and get themselves a life!! No one forces a student to go to the school - it's their decision!! You are entitled to your opinion of the school and i respect that. At the end of the day they offer superb facilities for their students, granted at a higher price but you get what you pay for. If you go up the road to Cabair, where obviously the sun shines out of their proverbial orrifice, you could pay less - but quite frankley the prospect of spending my 6 months ground school in a porter cabin doesn't appeal to me - after all one would training to become a pilot not a builder!! I believe they also train their students 'where the fuel is cheap and where everything is cheap'

Regards

JETSETJ

[g1344304]

Its just a joke jetset, didnt mean to offend. Didnt think it would be taken seriously! My opinion of the school is not stated anywhere in the thread

[744FO]

Does this have something to do with todays date? :confused:

There was me thinking OAT was really up for sale!

APRIL FOOL!

[JetSetJ]

Oh yeah!!

I though all April fools are supposed be posted before 1200 - so does that make the original poster the fool?? That's my excuse and i'm sticking with it:O

g1344304, no worries - it wasn't directed at you sir, it's just incredibly frustrating to see OAT being continously slated on these forums and yet no one ever seems to have an opinion on Cabair or the other schools! In fact i don't think i've ever read a negative post about Cabair or any of the other schools??

Happy April fools:D

JetsetJ:ok:

[744FO]

An eternity of bad luck to those who dare to fool beyond 1100Z :ugh:

[g1344304]

"In fact i don't think i've ever read a negative post about Cabair"

lol maybe you should read the Cabair thread!!!

[n90bar]

seems it is true - article in todays Financial Mail on Sunday, - you can find it if you search for the newspaper. It says:

THE company that trains pilots for customers such as British Airways and Thomas Cook could soon be under new ownership.

Oxford Aviation Training, which caters for the civil and military sectors, has been put up for sale by BBA Aviation.

The UK-listed aircraft maintenance group is understood to have instructed advisers from accountancy giant PricewaterhouseCoopers to sound out buyers.

The business, which has attracted strong interest from private equity firms, could sell for between £70 million and £80 million.

The firm, established more than 40 years ago, operates two residential pilot training centres — at Oxford Airport and at Phoenix Goodyear Airport in the Arizona desert.

Pilots who have trained to become a first officer on one of Oxford Aviation’s £60,000 courses are usually recruited by airlines such as British Airways, BMI and easyJet.

Since it was founded in 1963 the company has trained more than 20,000 commercial pilots.

Sales at Oxford Aviation Training were £18 million in 2006 — an increase of 20 per cent on the previous year. Higher revenues reflected the explosion in air travel that has followed the arrival of cheap, no-frills carriers such as Ryanair and easyJet.

Shares in BBA Aviation, which has a current market value of £1.15 billion, closed on Friday at 281p, down 1.13 per cent.

[DUB-GREG]

n90bar (http://www.pprune.org/forums/member.php?u=144803)

You got there before me. I was just reading the Financial Mail too and see the artical. Nice picture of the lads in the cockpit on approach.

I personally think this is bad news! But thats just my opinion.

[TheBeak]

Yeah it's true. I must say I think it would be dreadful for a private equity firm/ Venture Capital backed firm to buy the company as there sole objective will be to strip everything to the bones in terms of cost. cut corners, lean back on the head count and make a quick profit to re-sell on in 2-4 years time. I would think twice about investing vast sums of money and my career and thus future with a VC backed training provider. The idea may work for product based companies but surely not training providers............OAT may have a good(ish!) name and respectable brand but it could be demolished in a heartbeat.

[bluepeely]

Might not be bad news for us modular folk :}

[744FO]

I wonder what their reason behind the sale is?

[g1344304]

I wonder what their reason behind the sale is?

My offer was simply too good to refuse!

[TheBeak]

I'd say the reason is that they have taken the business to the capacity they really can without taking a much longer term view on things and tieing themselves in for another 10 years. No matter what anyone says realistically (and not pesamistically) the industry is due a relative downturn, interest rates are going up, there are government changes on the cards and the current boom has been 64 months relative to the typical 57 months........I'd say from their side it makes sense. Their is more and more competition out their and OAT is starting to struggle to maintain its competitiveness. I think the company will plummet if bought by a Venture Capaitalist type company........it will be bad news for them.

[Re-Heat]

Yeah it's true. I must say I think it would be dreadful for a private equity firm/ Venture Capital backed firm to buy the company as there sole objective will be to strip everything to the bones in terms of cost. cut corners, lean back on the head count and make a quick profit to re-sell on in 2-4 years time. I would think twice about investing vast sums of money and my career and thus future with a VC backed training provider. The idea may work for product based companies but surely not training providers............OAT may have a good(ish!) name and respectable brand but it could be demolished in a heartbeat.
Clearly, little idea of what Private Equity/Venture Capital actually do then...

I highly doubt they would be at all interested in the business anyway, as there is so little in the way of contracted ongoing revenues - too much cyclical business dependent upon the business cycle - few banks would lend to it for a buyout. You don't see students returning year after year!

Trade buyer would make far more sense.

[TheBeak]

No actually a very good idea of what VC companies 'do' thanks. 'VC' companies don't 'do' anything specifically, they 'are' investors that will look to make the company seem as profitable as possible in as short a time as possible and then either go public or sell it on for a big profit. And how the hell is training cyclical? Now that OATs training is USA/UK split is isnt at all cyclical nor seasonal.

[Subcutaneous]

Just spoke to some of the staff from when i was there and as normal they found out the same way we did from the Mail. They are not happy!
It looks like the company good as it is has been fattened for a big sell off! Rumour has it that someone who looks like Jimmy Somerville has just purchased a really expensive sports car. Was it a big bonus?

[SinBin]

I hear through the grape vine that all training on the APP will be in the US. This'll be interesting to see how these newly qualified guys cope with flying in UK airspace on their first job.... It's also interesting :rolleyes: to see if the £60K + course comes down in price considering how cheap you can actually fly in the US, or is this going to be marked up!

Just a rumour I heard.....makes you wonder though.

All a little too capitalist for my liking!

[asuweb]

SinBin,

I'd love to know where you heard that about all training being conducted in the states? My understanding was that the IR must be completed in European Airspace. Not much of that in the states.

[SinBin]

Was a rumour through a mate who's on the APP. That's about all I can say!

[PlaneHomerS]

So it's true! I thought it was all a big April fools joke..

Yeah IR has to be completed in the UK.:)

[Oxeagle]

Just heard it from the horse's mouth - definitely true!

[Re-Heat]

No actually a very good idea of what VC companies 'do' thanks. 'VC' companies don't 'do' anything specifically, they 'are' investors that will look to make the company seem as profitable as possible in as short a time as possible and then either go public or sell it on for a big profit. And how the hell is training cyclical? Now that OATs training is USA/UK split is isnt at all cyclical nor seasonal.
Training is cyclical as it dries up entirely during economic downturns, as opposed to being stable whatever the economic environment (such as water companies might be). What you refer to is seasonality, something that is clearly irrelevant to OAT.

If you are interested in what they actually do...see this: http://www.kkr.com/news/speeches/02-21-06.html

Headline : Oxford Aviation Training for sale at estimated GBP 70m-80m - report
Main body : Oxford Aviation Training, the pilot-training group owned by UK-listed BBA, has been put on the market, according to a Mail on Sunday report. The unattributed article said PricewaterhouseCoopers advisers have been retained to assess potential buyers for the business, which is estimated to be worth GBP 70m-80m (EUR 103m-118m). Private-equity houses have shown significant interest, the report said.
The four-decades old company comprises two residential centres at Phoenix Goodyear Airport, Arizona, and at Oxford Airport, the item noted.
Source : Mail on Sunday
Grade : Rumoured
Alert : UK M&A Alert

[TRY2FLY]

Hmmmmmm:confused:

[stephen_b]

I am applying for OAT and have my assessment 17/18 april - do you think this could affect me if I joined?

[chrisbl]

Of course it will. There will be uncertainty in the organisation, staff may start to jump ship irrationally and this will have an impact. The official word will be no change but it will all depend on what the new owner wants to do.

More often than no the "law of unintended consequences" comes into play.

Mind you I can see why BBA want shot of it. It has no real place in their group.

[Hamid_27]

I think it may have an affect on people wanting to join, because it will make them think twice as to why its up for sale, and therefore look at other, more reliable schools to join.

Also another factor to considor even though the training standed most probably wont drop - would Airline relationships change?

shocking to hear ( if its True) that some of the OAT staff found out by reading the papers!!:eek:


27:sad:

[Re-Heat]

shocking to hear ( if its True) that some of the OAT staff found out by reading the papers!!
Standard procedure in any company sale; the owner has to be able to consider their options in secrecy.

I expect the future for OAT will be very bright indeed, since so much investment has been made into the business in the recent past, and there would be little value in the company if it were instead broken up.

[Whirlygig]

Standard procedure in any company sale; the owner has to be able to consider their options in secrecy.


No it's not. I've been involved in many acquisitions, mergers, and disposals of businesses.

True that some businesses may want to carry out negotiations in secret but, in that case, the press should not be allowed to find out (and, indeed, most staff). However, if there is any danger that information gets leaked, every business I have ever worked has informed the staff. The last thing you want is a jittery workforce when trying to sell a business.

Cheers

Whirls

[eliasg17]

Is oxford for sale...yes or no??????
Will it affect someone that wants to join in about 2 years???
regards

[African Drunk]

It has been bought and sold before and kept going. BBA got stung when they bought it previous owners and petticoat laughed all way to bank. He went to midlands then came back to sort it out at request of BBA when they realised how they had been sold a turkey not a golden goose.

[scroggs]

Companies are bought and sold all the time; it's one of the primary ways for private company owners to make money from their investment. OAT is not at all unusual in this respect; it is a small to medium-sized business that's probably at or near the top of its cycle and is earning good returns with excellent prospects if the industry continues to expand at or near its current rate. Despite some of the regular negative reports you'll read here, OAT does have a good reputation as a business and will almost certainly attract the attention of investors looking for good returns in an expanding industry.

As for asset-stripping, I would be very surprised if OAT has any significant assets. Its aircraft and premises will all be leased, and are thus not OAT's property, and it will have few other assets beyond its reputation. Thus there is nothing for a predatory investor to strip. Whether there is any cause for concern for future students will entirely depend on the nature, empathy and expertise of the new owners.

Scroggs

[Gullyone]

Well done Scroggs. At least a reasonable assesment of the situation that might put the OAT students mind at ease. As a regular visitor to OAT I can confirm that there is not any excitement in the ranks.

[FlyingForFun]

As for asset-stripping, I would be very surprised if OAT has any significant assets. Its aircraft and premises will all be leased, and are thus not OAT's property
I heard a rumour that the sale includes absolutely everything, including the freehold on the airport itself.

I have absolutely no idea if this is true or not, or what implications it might be. Does anyone know who owns the airport at the moment? Because if it is owned by anyone other than OAT, that would immediately put a stop to this facet of the rumour, and make Scrogg's comment seem far more likely.

FFF
--------------

[Katherine Alexandra]

"Oxford Airport has been owned and operated by BBA Group plc "

Found that through Google...

Not so overly positive, but then I guess it depends if BBA are selling that as part of the OAT package...

[Tkey]

Prepare to be surprised Scroggs.
I went through OAT several years ago and they/now BBA own all the real estate, all the airfield and all the aircraft.
In addition they own all the aircraft used in the USA.
As usual Scroggs is very anti OAT and is talking his usual biased rubbish.
I was very pleased with OAT when I went through and have no doubt they are still as professional as they always were.
Any company that is owned by a larger group will be at risk of sale/takeover. I suspect that BBA are selling OAT because they believe OAT is in very good shape and will at this time realise a maximum profit for BBA. This should in no way effect the future of OAT, and may even increase any investment required.
I'm still in the industry (grounded unfortunatly, but in contact with the recruiters). The airlines are still recruiting hard from OAT, and will continue to do so for the future.

[TheBeak]

You numb nut i'd say Scroggs was on the side of OAT in his comment. The fact that they own the airport and aircraft etc. makes the idea of a sale to some private equity firm a darn site worse.

[EpsilonVaz]

Or you could just look at the date of the original post being on the 1st April :rolleyes:

[captain_rossco]

that would have to be a hell of an april fool to make it into the Financial times!

Regards

Rossco

[Adios]

BBA purchased OAT, CSE Aviation and the Oxford Airport in early 2001 for about £55 Million. Their interest was probably in the Airport and CSE because those businesses are in line with their core investments elsewhere.

BBA is keeping CSE and the Oxford Airport, so no surprise there Tkey. I think OAT does own their fleet, but I would hardly consider a bunch of vintage Warriors and Senecas with over 5,000 hours and some approaching 10,000 to be a "strippable" asset. These are depreciating assets and the Senecas will be hard to get rid of once MPL makes them obsolete as a training platform.

The solid business turnover and management expertise is what makes the company attractive, not the depreciating assets.