AAVG Showcases Logic Behind Aggressive Marketing in Second-Tier Aviation
AvStar Aviation Group (PINKSHEETS: AAVG) is proud to announce an aggressive new marketing stance in the aviation sector. Despite major airlines decline last year, independent airlines actually showed an increase. Meanwhile, those who were not fortunate enough to experience that increase are looking to sell in a down market.
There are an estimated 3,100 FBOs in the United States that service private aircraft. These FBOs provide a variety of functions including fuel, hanger, tie-down space, travel, and flight planning support. There are four operators that target the corporate elite with ultra-premium, service and pricing: Atlantic, Signature, Landmark and MillionAir. Together, these operators have 180 FBO locations representing less than 6% of the U.S. market. With over 94% of the sector operating independently or as part of smaller "umbrella" groups, there remains significant untapped opportunity for consolidation in this field. In addition to Landmark's owners, The Carlyle Group has long been involved in FBO ownership with a large consolidation play and Capstreet sold a portfolio of 23 FBOs (Trajen) to Macquarie for $338 million in 2006. AvStar hopes to mimic the success of their predecessors by creating a comparable portfolio and in doing so creating a brand with the financial potential of the FBO giants aforementioned.
AvStar has re-opened negotiations with 3 FBOs and recently announced they signed a letter of intent ("LOI") with Twin Town Leasing, d/b/a Twin Air Calypso providing charter service to the Bahamas to and from Florida. The estimated revenues on Twin Air Calypso alone are approximately $3.2 million. With multiple discussions underway, AAVG is well into the process of achieving their short-term acquisition goals.
