Signature Flight Support Outperforms in Tough Times

The Signature Flight Support FBO chain has outperformed a flagging market in the first six months of this year, according to parent company BBA Aviation. Revenues at Signature were down 14 percent compared with the first half of last year, but BBA says that this compares favorably with an average 26-percent revenue decline in the U.S. business aviation ground handling sector, as well as a 20-percent drop in Europe. BBA Aviation’s revenues for the first half of this year dropped only 2 percent to £550.2 million ($907.8 million) from £560.5 million, and operating profits fell by the same percentage to £50.6 million ($83.5 million) from £51.6 million. Group CEO Simon Pryce said BBA has reduced capacity in response to declining demand for aviation support services, especially in its APPH and Dallas Airmotive maintenance operations. He added that the downturn will likely present good opportunities for BBA to acquire new assets, in particular for Signature, which might be able to buy FBOs at more “realistic” prices. Pryce did not rule out a BBA rights issue to raise funds for such acquisitions.