B/CA Show News - NBAA 2007 Day 2 - (Page 36)

N B A A 2 0 07 ExecuJet to Spread Its Service Wings Revealed this past May was the news that reclusive Irish billionaire Dermot Desmond had acquired a majority shareholding in the Zurichbased ExecuJet Aviation Group after an ExecuJet lead initiative. Desmond has become the group’s chairman, and a further significant investment from him is promised to fuel the company’s global business plans. So what is it like having Dermot Desmond as the boss, asked Show News? “When he bought into the company, he saw it as a promising young entrepreneurial organization,” said Peter Smales, executive director of marketing for ExecuJet Aviation Group. “He didn’t come in to take managerial control but obviously wanted to make sure that his investment was being properly managed. As chairman he plays a very critical role in strategic decision making; however, he does not have a day-to-day role in running the company.” The ExecuJet Aviation Group is an independently owned global aviation company, providing complete private and business air transport solutions. It has associated companies in Australia, Europe, the Middle East and South Africa, with exclusive aircraft sales franchises representing Bombardier Business Aircraft and Grob Aerospace in key territories across the globe. It also boasts a private and commercial charter management fleet of 100 business jets, six air operators certificates, and business aircraft maintenance facilities and FBOs on four continents. ExecuJet is undergoing a major change in approach, Smales said. “Under our new model, we’re looking at services opportunities in business aviation independent of whether or not there’s an aircraft sales potential at the end of a deal, and this is a new strategy for us. “In the past, before making an investment decision, say, in a maintenance facility in country X, we would have analyzed our ability to get a dealership,” Smales said. “Now it’s a case of if we see a business aviation opportunity, whether it be FBO, maintenance, or maybe managing a small fleet, we say, right, let’s look at it as a standalone opportunity; then later we might be able to sell some aircraft or leverage the ability to sell aircraft based on our investment. “Before it was a case of, How do we implant an entire model in a region? Now it’s a case of, Does that element of that business model make 36 Behind-the-scenes and in-the-cabin service employees of Execujet Aviation. “Under our new model, we’re looking at services opportunities in business aviation independent of whether or not there’s an aircraft sales potential at the end of a deal, and this is a new strategy for us.” —Peter Smales, executive director of marketing for ExecuJet Aviation Group sense in its own right?” he emphasized. “If we are then lucky enough to plug in other elements of what we call our business model, then so be it, but it’s no longer a prerequisite. If it means one man with a spanner for a specific operation, then so be it; in the past we wouldn’t even have considered this! “That’s what I call the fundamental shift in the way we look at our business. We’ve only got into this mode during the past couple of months, but needless to say we are obviously looking very closely where some opportunities might be presented.” Reading between the lines, ExecuJet wants to increase the assets of the company in its push forward. Said Smales, “I think it’s more about, where does the real value in the business lie? The aircraft sales business, in terms of inherent value, doesn’t offer a lot in the long term because it’s not bricks and mortar—it’s not substance. Whereas the services business is something you can actually build into value over time. So I think you could say, if you’re going to invest in a business aviation company, which will grow in value, it’s better to have an emphasis on the services side of the business rather than relying on aircraft sales.” Russia, Germany and the UK are potential areas for increased ExecuJet investment and activity, Smales confirmed. He is also definitely interested in the Asian subcontinent and Far East Asia as key emerging markets, with India and China also holding great interest for both sales and service. “In India and China we see great potential for FBOs and maintenance operations. Neither country has the infrastructure that could yet properly support the potential growth. There’s going to be a need to set up some pretty strong support infrastructure around the maintenance side, so we definitely see opportunities in these two countries. “In terms of our strategic thinking, we’ll look at India as an opportunity independent of whatever we develop at our Dubai FBO, as this operation has enough opportunity in the immediate Middle East,” he stated. “It’s seeing phenomenal growth, with 900 movements recorded in a recent month.” —Mike Vines September 26, 2007 www.aviationweek.com/shownews

Table of Contents Feed for the Digital Edition of B/CA Show News - NBAA 2007 Day 2

Contents Spectrum Stresses Freedom Adam Shows A700 Cabin User Fee War of Words Execujet Boosts Services Saab's Got Your Back CAE Covers the Field London Airports Roundup Pratt & Whitney Canada Another Show! A More Digital Jeppesen CMC Rides Bizjet Wave Thales Weighs In We Fly the Eclipse 500

B/CA Show News - NBAA 2007 Day 2

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