LONDON (Alliance News) - Aviation services company BBA Aviation Ltd on Tuesday said it has agreed to merge its aircraft management and charter business with the US aircraft management unit of UK-listed Gama Aviation PLC.
The combined business, Gama Aviation Signature Aircraft Management, will be among the largest aircraft management and charter businesses in the world, with 10 million square feet of hangar space, mobile line maintenance, aircraft on ground and engine support capabilities.
Ownership of the new business will be split equally between BBA and Gama, with Gama to manage and operate the combined unit. Gama expects cost synergies of no less than USD2.0 million after the first two years of operation and said the deal will significantly expand its overall presence in the US market.
"This agreement marks another milestone for BBA Aviation, creating a leading charter and fleet management company, whose scale will benefit both the group and our customers. We look forward to working with our partners at Gama Aviation to develop and grow the company in the years ahead," said Simon Pryce, BBA's chief executive.
"We are delighted to announce this exciting deal and to be teaming up with BBA Aviation in the US. The enlarged business creates a market leader and an unrivalled platform for growing our share of this massive business aviation market," added Gama Chief Executive Marwan Khalek.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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