Lux aviation buying Execujet?

[Global_Global]

Somebody told me this morning that Lux is buying Execujet. Is that true? Anybody knows more about this? :}

I would have thought that it would make more sense if Execujet buys Lux :ooh:

[Don_Apron]

Oh interesting.

Might clip a few wings of empire builders at EJ.

[AviationIntelligence]

Apparently the deal's done!

[Booglebox]

This is a persistent rumour that I have heard through my channels too, but I find it hard to believe. ExecuJet have quite a few actual FBOs and maintenance facilities. Are Luxaviation buying these too? (if so, where did they get the $ from?)
Or are they just buying the MANCO?

[FerrypilotDK]

Some of them deserve to have more than wings clipped!

[Global_Global]

Are Luxaviation buying these too? (if so, where did they get the $ from?)

The below was posted by Flexjet in another thread and seems the most credible.... In other words welcome in the world of high finance where more money is made from buying and selling companies than from running them :hmm:


Luxaviation, assisted by Edison Structured Services SA, raised 10M EUR in May 2014 and 20M in December at the Luxembourg stock exchange:

https://www.bourse.lu/instrument/bon...&cdTypeVal=OBL (https://www.bourse.lu/instrument/bond/summary?cdVal=210333&cdTypeVal=OBL)

https://www.bourse.lu/instrument/bon...L&cdVal=217707 (https://www.bourse.lu/instrument/bond/summary?cdTypeVal=OBL&cdVal=217707)

Interesting reading the two prospectus. They appear to be buying sound, established companies and have a business plan.

But why not mentioning Mr Hansen as the CEO of Luxaviation?
Edison Capital Partners - Biographies (http://www.edison.lu/en/biographies.html)

Is Mr Bogachev still involved with Luxaviation?

[Booglebox]

Thanks Global_Global, I saw that on that thread, I was unclear earlier - I don't think 30m euros is enough, and didn't they already spend some of that on other acquisitions e.g. LEA?
ExecuJet have about 90 aircraft. LEA have about 25 aircraft (AFAIK) and were bought for ~$15m if one of the posters in that thread is right, so that's $.6m / aircraft. But, 8-strong Legacy fleet notwithstanding, LEA have a lot of mustangs, Citations etc. whereas EJ has mostly heavy stuff like Globals and larger Gulfstreams. So, bearing in mind that EJ try to make at least $1m a year in gross revenue from all their aircraft (not always possible), and that heavier aircraft cost more to run, let's push that figure up a bit and say a bit less than ~$1m / aircraft should be about right.
Of course, all that revenue doesn't just come from management; it also comes from EJ FBOs, maintenance & completions, fuel, charter revenue, and before the JetCraft split, from aircraft sales.
Also, those other bits of EJ also make money, but I have no idea how much.
So, I would say $150-200m is a conservative figure. It may well be much more. Or, if their finances are in a state (I have no idea about this either), it could be much less...
(by comparison, there are also rumours that VistaJet is for sale, allegedly for $700m)

So if this rumour is true, the questions are:
- is EJ really worth that much?
- if not, why not?
- if yes, where is the $$$ coming from? 30m euros isn't going to cut it.

Make sense? Please correct me if you see holes in my logic / wrong facts!

[Global_Global]

I would think that profit and turn over are the most likely drivers to come up with a price. A Mustang that is flying full out on charter can be more profitable than a bad management contract on a Global (and vice versa) I think so to look at the number of aircraft is probably not the best way to look at it. :8

Regarding Vista: Exclusive: VistaJet in talks with banks on possible $900 million sale - sources | Reuters (http://www.reuters.com/article/2014/07/14/us-vistajet-sale-idUSKBN0FJ1QD20140714) So only $900.000.000 :D:D:D:D:D

[AviationIntelligence]

Think people need to revise their estimates:

EXECUJET (UK) LIMITED. Free business summary taken from official Companies House information. Free Alerts. Registered as 05080620 (http://companycheck.co.uk/company/05080620)

Whilst it's only one part of the company, that's still quite a large sum of money to absorb!

[Booglebox]

Crikey. No wonder most of the management of that bit of EJ have left or migrated to different parts of the company.

(by the way, I have little idea about FBO economics, but who thought opening a large full-service FBO at CBG was a good idea, with its typical ~3-5 bizjet movements a day?)

[Above The Clouds]

Booglebox
(by the way, I have little idea about FBO economics, but who thought opening a large full-service FBO at CBG was a good idea, with its typical ~3-5 bizjet movements a day?)


I think it was to move away from LCY and of course they opened it in anticipation of the London Olympics.

[AviationIntelligence]

Well if Luxaviation have bought it, it just doesn't make sense with the quote from this article:

Luxaviation Plans Five-fold Fleet Growth Through Company Acquisitions - BAVIATION Business Aviation News (http://www.baviation.cn/en/operations/all/operators/3541-luxaviation-plans-five-fold-fleet-growth-through-company-acquisitions)

“We are always on the lookout to buy financially sound operators,”

[Daifly]

http://www.compcom.co.za/wp-content/uploads/2014/07/Statement-on-the-decisions-of-the-Competition-Commission.pdf

Second page.

[Tequilaboy]

https://africanbusinesstimes.com/2015/03/31/luxaviation-group-acquires-execujet-group-and-creates-a-global-leader-in-business-aviation/

[Lear_doctor]

Any readers from LEA? - You were recently taken over by LuxAir how was that experience for you? - PM me if you don't want to reply publicly!

thanks

The Doc

[Global_Global]

OK let the bets be on: announcement at EBACE? :p

Will be a nice culture clash.. I always rated Execujet much higher than the companies that they bought so far... :8

Was Execujet profitable?

[Booglebox]

Was Execujet profitable?

I don't know, but if I had to guess I'd say that the management bit probably is.

[LGW Vulture]

I can't see a major announcement being made at EBACE as all the folks in the know have been told to keep matters quiet for the moment.

The NAS Jet deal is also bubbling big time but LUX will watch and wait on this one especially given the Execujet sensitivities. Strategically the NAS deal might be a big winner for LUX but is highly dependent on what operational agreements can be put in place beforehand.

Goodness gracious - who's next in the line of fire? :uhoh:

[Booglebox]

There are a couple of low-hanging fruits out here in Central Europe :E

[CaptainProp]

ElitAvia, Avcon, DC, TJS?

[Booglebox]

I would agree with all of those - Amira too.

[Global_Global]

Well in our industry there is not much low hanging fruit left... Most is already on the floor and slightly rotten... :eek:

[CaptainProp]

Speaking to a some friends and ex colleagues, in companies that have already been "absorbed", I have been surprised to hear that apparently no efforts have been made to utilize the buying power of the new group of companies when it comes to training, fuel, handling etc.
If correct it could of course still be a bit premature to draw any conclusions from, but these areas would be early and fairly straight forward areas to address I would have thought?

[Phil Brockwell]

Captainprop,

As you may have probably guessed, you're friends and colleagues are talking rubbish.

I know that fuel purchasing, Insurance and other areas were homogenised from day 1.

Just because you bump into someone who works for a company, don't assume they know what is going on at board level.

Luxaviation are letting each company keep it's own company culture whilst also having the economies of scale in the purchasing side - a refreshing approach if you ask me.


PB

[AviationIntelligence]

Refer you to my post of 6th March, sources apparently say a major announcement will be made tomorrow confirming this!!

[Global_Global]

oH Blimey... there goes my EBACE prediction... :hmm:

But my "JetDirect like future" prediction still stands :E

[Booglebox]

Well, spank my ass and call me Charlie. Luxaviation snaps up ExecuJet to become world's second-largest business jet operator - 5/5/2015 - Flight Global (http://www.flightglobal.com/news/articles/luxaviation-snaps-up-execujet-to-become-world39s-second-largest-business-jet-411890/)

[CaptainProp]

Interesting. I wonder how concerned TAG, Global Jet, Jet Aviation, Hangar8/Jetclub, Gama etc should be over this development? Are they big enough to continue on their own? Is the market big enough for these companies to co-exist?

CP

[Charter JAROPS 1]

reading now the Flight Global article suggests that Execujet has brought about 150 aircraft to the party. I think everybody here knows, that this it not the truth. Of course Execujet has a quite a footprint, but no way that have 150 aircraft under mgt. Can anyone confirm this fleet size. I think 70 max might be right.

[FlyMD]

I think if you count all the planes and helicopters that are either managed or have a service agreement worlwide, 150 could be correct...

From experience, it does not take much time or effort to lose the clients you supposedly "bought" along with the management company, as the present owners of Jet Aviation or Premium Jet could testify...

There had better be some serious brown-nosing of the existing customer base at Execujet going on....

For me the pudding-proof will be how long DD keeps his own 7x at EXJ..

[Booglebox]

FlyMD is spot on in every respect. (do we know each other?....)

[FlyMD]

Booglebox.... Could be ))) are you also one of those guys who will pretend to have less Marriott nights and points than they have, because the truth is just a bit pathetic? :bored:

[CaptainProp]

Hehe...You guys in Marriott these days? :ok::}

69 aircraft registered as managed/operated by EJ.

CP

[Global_Global]

69 aircraft registered as managed/operated by EJ. True but many a VP/M reg are not assigned to the management company that looks after it... :8

[AviationIntelligence]

Heard that the 2 X Global 6000s Execujet received:

ExecuJet Aviation Group welcomes 10 aircraft to managed fleet (http://www.execujet.com/en/ej-today/2014/11/execujet-aviation-group-welcomes-10-aircraft-to-managed-fleet/)

are actually sitting in a hangar somewhere without interiors in and haven't flown. Operators are always very keen to tell you when they get new aircraft under management, but, for understandable reasons, they aren't going to tell you when they lose an aircraft.

So 'aircraft under management' is always a flexible and grey area.

As an example, Its a bit like when they report "increased movements at Cambridge Airport", that doesn't actually mean they have had a lot more aircraft taking off and landing there - it really means they've just had a higher turn over of staff, leaving the Company and being replaced.

[Booglebox]

FlyMD: No, I'm the guy in the office that you give your Marriott rewards number to :zzz: :}

150 aircraft is a bit of a dodgy number IMHO. Earlier this year the # of aircraft dispatched by the guys in Cambridge had just passed 100, including all the AOCs, private stuff, middle east stuff, etc. so that means there are 50 others that are managed but not dispatched.... Plausible I guess. Could be fuel only or completions or whatever.

I think DD will be happy if he has his fresh flight attendant for every flight... :E

[CL300]

Nice and Cannes handling aka Sky Valet bought the handling part of the Paris outfit already.. teardown starting. this after Gestair... money money money ....where are you from ?