U.S. Flying Propelled Signature in 2014

A strong performance by Signature Flight Support helped lead BBA Aviation’s Flight Support group to an 8-percent growth in organic revenue and a 14-percent jump in operating profits in 2014. This helped balance the 4-percent decline in organic revenue and 12-percent drop in operating profits at BBA’s Aftermarket Services.

Signature’s performance improved as U.S. business and general aviation movements increased 4 percent. European movements were still down in 2014 for Signature but by only 1 percent.

While U.S. operations are up, BBA Aviation CEO Simon Pryce points to a “bifurcation” with growth in large-cabin and new-aircraft flights. “In older mid-cabin flying, the market still continues to decline,” Pryce said, adding, “that's been a bit of a headwind for our engine-repair business because the repair of those engines is a big piece of their market.”

While “weaker than anticipated markets” in its engine, repair and overhaul (ERO) segment contributed the poor Aftermarket Services performance, ERO’s “footprint rationalization” is on track and portfolio grew, the company said.

 “[Last year] was a year of great execution of our strategy,” Pryce said. “We invested over $160 million in new acquisitions and licenses, all of which will contribute to 2015 and beyond.” This included the addition of eight FBOs to Signature’s network in 2014. More investments are planned, he said. “We see a strong pipeline into 2015 and beyond.”