Gama Aviation sells its US Air associate

Date: 2nd March 2020

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No 596/2014

Gama Aviation Plc (AIM:GMAA) ("Gama Aviation", the "Group")

Gama Aviation sells its US Air associate

Gama Aviation, the global business aviation service provider, today announces the sale of its US Air associate, Gama Aviation LLC (doing business as "Gama Aviation Signature") to Wheels Up Partners Holdings LLC ("Wheels Up").

Gama Aviation Signature is owned 49% by GB Aviation Holdings LLC, a joint venture between the Group and Signature Aviation Plc, with the remaining 51% held by the Group's US partners.

Gama Aviation will receive consideration of USD$33m, comprising USD$10m in return for its 24.5% equity interest and USD$23m for accelerated branding fees and other trading related considerations.

USD$13m of the total purchase consideration is to be paid in cash at closing, with the remaining USD$20m to be paid in cash, with interest, in eight equal six-month installments over the next four years.

The transaction is expected to be accretive to underlying earnings to FY2020 and FY2021 as well as resulting in a one-off profit on disposal of the equity interest. [1]

As part of the transaction, GB Aviation Holdings LLC has licensed the continued use of the Gama Aviation Signature brand for up to two years. The Group has additionally entered into a five year non-compete agreement with Wheels Up in respect of its FAA Part 135 charter operations in the USA.

The Group intends to use the proceeds from the sale to continue to execute its strategic objectives through its organic and acquisitive growth investments, further consolidating the fragmented business aviation market.

Commenting on the transaction, Marwan Khalek, Chief Executive of Gama Aviation said:

"We are pleased to announce the sale of our US Air associate. Strategically divesting minority investments simplifies our corporate and financial structure allowing us to further reinvest in growing the Group's wholly owned subsidiaries in line with our strategic objectives."

ENDS

For further information please visit www.gamaaviation.com or contact:

Gama Aviation Plc +44 (0) 1252 553000

Marwan Khalek, Chief Executive Officer

Daniel Ruback, Chief Financial Officer

Jefferies International +44 (0) 207 029 8000

Simon Hardy

Will Souter

Camarco +44 (0) 203 757 4992

Ginny Pulbrook

Geoffrey Pelham-Lane

Gama Aviation - Notes to Editors

Founded in 1983 on the simple principle of delivering its clients' missions with passion & dedication, Gama Aviation Plc (LSE AIM: GMAA) is a highly valued global partner to those who use aviation as a platform to perform.

The Group has three divisions: Air, Ground & Global Services. Air services include: aircraft management, special mission support and charter; with Ground services covering: base & line aircraft maintenance services, aircraft modification design and installation and Fixed Base Operations (FBO). Global Services provides CAM, change management consultancy and industry leading software.

More details can be found at: https://www.gamaaviation.com/