IS THIS THE START OF MASS CONSOLIDATION IN THE PRIVATE JET MARKET?

Are we starting to see consolidation in the Private Jet Aviation market? I have for some time been saying that this space is perfect for a large Venture Capital firm to step in and consolidate a few elements of the Private Jet Aviation market, and we may be seeing some of the early steps of that happening.

The boldest of the moves comes from world renown Private Equity firm Blackstone who have made a bid to acquire Signature Aviation the leading FBO operator in the US and with a significant footprint in the UK/ Europe. The offer is significant at £3bn and in my view signals the start of what could be a serious move to consolidate the industry. First starting with the Infrastructure (Signature) and then buying up some of the mid tier Private Jet Operators, effectively creating an airline around private aviation needs.

If you think about the pandemic fears that are likely to remain with us for some time, this is an interesting prospect. Blackstone would be perfectly placed to bring together a number of key industry players to create a compelling proposition in this market. Overlay the new entity with a market leading loyalty program to lock in direct bookings at competitive prices and they will be onto a winner.

This is definitely a space to watch over the next 12-18 months.