Industry consolidation in Europe: LEA bought by Luxaviation
News this weekend that the Luxembourg-based operator Luxaviation has bought a majority shareholding in London Executive Aviation (LEA) – the UK’s biggest charter operator.
The combined business will now become of Europe’s biggest private jet operators, with a fleet of 90 aircraft.
This is good news for both operators – and another step forward for the highly fragmented European business aviation industry.
Over the last couple of years we’ve seen several examples of operators combining their fleets, which can make good business sense. For smaller operators – particularly those with just a handful of aircraft – the amount of administration now required can be prohibitive. It’s no surprise that many are looking to combine forces.
Since the recession, there have also been major changes in the way private jet customers book their flights, our industry is evolving rapidly.
An operator based in London, for example is no longer mainly hiring their jets to a predominately London client base. Clients from anywhere in the world are finding and booking their aircraft, which are, of course, moving around all the time. So their aircraft are increasingly likely to be chartered by a French, Russian or even a US client – for routes that may not begin or end in London at all.
Patrick Margetson-Rushmore, founder of LEA, was quoted as such in this week’s Sunday Times: “When we started we were serving largely UK-based clients. Now they are global, so consolidation makes sense.”
All of this is great news for the customer too. Access to a more global market means more choice. And more choice means greater competition and more cost-effective pricing.
But with still over 500 operators in Europe alone, that choice can be baffling. That’s where our technology comes in, giving the customer the tools to compare the market, including pinpointing live aircraft locations. That way the customer finds the right aircraft, at the right price, no matter where they – or the aircraft – is based.
To compare the market for your flight itinerary, contact us or call our 24-hour Flight team for advice on +44 1747 642 777
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