B/CA Show News - NBAA 2007 Day 2 - (Page 82)

N B A A 2 0 07 Atlantic Is Now the Big Kid on the FBO Block Atlantic Aviation has become the nation’s largest network of fixed base operations with the recent completion of its acquisitions of Mercury Air Centers, Supermarine and San Jose Jet Center. The Mercury acquisition added FBOs at 22 airports, including Los Angeles International, Reno, Nashville, and Atlanta-Peachtree; while Supermarine added Santa Monica Airport and Stewart International Airport; and San Jose Jet Center added Mineta San Jose International Airport. Altogether, the acquisitions will boost Atlantic Aviation’s network to 61 branded FBOs in the continental U.S., with coast-to-coast locations in all major markets, according to Louis T. Pepper, chief executive officer. “This is a tremendous fit for us because there were no overlaps at all,” Pepper said. “It allows us to incrementally expand our service footprint and to expand the Atlantic service to our customers.” Atlantic itself was already an amalgamation of a number of FBO companies, starting in 2004 when Dallas-based Executive Air Support, the parent company of Atlantic Aviation, then operating a chain of ten FBOs, was acquired by the forerunner of Macquarie Infrastructure Co. In 2006, Atlantic and FBO AvCenter, two Macquarie subsidiaries, were merged and, later in the year, Trajen’s portfolio of 23 sites was added to the mix, with other FBO acquisitions along the way. Pepper said Atlantic’s rapid growth is consistent with the com- “We found Mercury was a very well-run chain, with the same basic service culture as we have. The only change we are making is mostly providing consistency.” —Sue Sommers, vice president of sales and marketing for Atlantic pany’s business plan. “Growth through acquisition has been our business model, and we have been consistent,” he said. “We’re very optimistic about the industry, and we’re in it for the long haul.” Parent company Macquarie Infrastructure obviously thinks so. It said it paid an aggregate $428.7 million for 89% of the equity and 100% of the common stock of Mercury. Included in the price was an option to purchase preferred shares representing the remaining equity and a $6.5 million dividend on those shares. If it exercises its option by the end of October, it would pay out another $28.4 million. It also paid $163.4 million for the San Jose Jet Center properties. Although there is “nothing targeted at this time,” Pepper did not rule out further acquisitions, noting there are still “some key locations” where Atlantic doesn’t have representation. “We will Atlantic’s FBO at Teterboro (TEB) has 100,000 sq ft of hangar space. remain opportunistic,” he said. “We still think some locations will fit into our business model.” There are no current plans for international expansion, he added. Pepper and Sue Sommers, vice president of sales and marketing for Atlantic, are managing the integration process of the new FBOs into Atlantic’s network, which will be completed in 12-18 months. Sommers said the rebranding is underway, and visitors to NBAA will see new “Atlantic Aviation” signage at its Atlanta FBOs. Telephones at the new FBOs are being answered as Atlantic; signs and uniforms and the Atlantic culture and Atlantic’s FBO at Philadelphia International (PHL) has two 25,000 sq ft hangars. “This is a tremendous fit for us because there were no overlaps at all,” Pepper said. “It allows us to incrementally expand our service footprint and to expand the Atlantic service to our customers.” —Louis T. Pepper, Atlantic Aviation’s chief executive officer. amenities are being introduced. Its concierge program will be instituted at the large bases, and its Atlantic Awards loyalty program rolled out to the acquired locations, she said. “We found Mercury was a very well- run chain, with the same basic service culture as we have,” Sommers said. “The only change we are making is mostly providing consistency.” Although the number of FBOs acquired would bring the network to a larger number, Sommers explained, in cases where there were two FBOs in one location, such as San Jose, they will be combined into one “Atlantic Aviation” branded location. Including the additions, more than 70% of Atlantic’s sites operate as the sole or one of two FBOs at their airports. A couple of FBOs located in Alaska are not branded as Atlantic. Altogether, Atlantic has 2,200 employees. The company, which has 2,200 employees, also is in the midst of some substantial capital improvements, Pepper said, including an $18 million terminal and hangar complex at San Jose. The company also is in the final months of a $12 million terminal and ramp construction project at LAX. —Carole Shifrin 82 September 26, 2007 www.aviationweek.com/shownews http://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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