Story ID: 
Aircraft Management Is Challenge in BBA-Landmark Deal
By: Curt Epstein
Caption: London-based BBA Aviation will limit ownership of the Landmark charter and aircraft management business to a non-controlling stake to satisfy U.S. regs.
Word Count: 240
While the business aviation community remains abuzz over BBA Aviation subsidiary Signature Flight Support's proposed purchase of Landmark Aviation from the Carlyle Group, the disposition of Landmark’s aircraft charter and management division will present an extra consideration for the UK-based BBA, based on U.S. regulations preventing majority foreign ownership of a commercial air carrier.

“Following completion, we plan to limit our ownership of the Landmark charter and aircraft management business to a non-controlling stake to address the U.S. DOT U.S. control requirements,” a company spokesperson told AIN. “We will create a wholly owned new entity, which will provide charter brokerage services, which are not subject to U.S. ownership and control requirements, to Landmark’s clients and to other charter operators.”

The deal, announced September 23 and expected to be completed early next year, includes Landmark’s FBO network, which could see BBA’s Signature Flight Support global network swell to nearly 200 locations, as well as Landmark’s MRO locations. Over the past year Landmark had expanded its charter management division to more than 100 aircraft, trailing only Executive Jet Management in this realm. “In the period before completion of the deal, preparations are being made in respect of any restructuring of the charter transportation and aircraft management business, which is required to comply with the U.S. Department of Transportation’s U.S. ownership and control requirements,” said the BBA spokesperson.