Private equity firm invests in private jet FBO network
The private aviation sector after previous recessions has been an excellent recovery stock, so this month’s sale of Swissport International to PAI Partners is a very interesting signal. Swissport International is the world’s leading provider of airport handling services, and its sale, by Ferrovial, is even more intriguing as it is the first entry into aviation by the private equity group PAI.
Who are the players:
Ferrovial – World’s largest private manager of transportation infrastructure and a leading services provider. One of Spains biggest companies employing over 100,000 people with investments of approximately 50 Billion Euro. Hit the headlines in UK recently with its take over in 2006 of BAA.
PAI Partners – A large European private equity group with ties to Paribas, the pan-European merchant bank which merged with BNP in 1999. No previous investment in private aviation.
Swissport – a leading network of private jet terminals and handling services. Their headquarters and flag ship FBO are at Zurich Airport and typically for a Swiss company have appeared self-sufficient from the outsider’s viewpoint, so this is an interesting call for investment.
As I’ve said before, the evolution of the FBO will be one of the most fascinating aspects of our industry as it recovers from recession. Watch this space for further FBO takeovers in a competitive market.
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