It's been a busy six months for Air Partner; what has been the main focus of the year so far?

"Yes, it has been a very busy six months! We are trading in line with expectations and there has been a strong focus on Commercial Jets, our largest division, and we are delighted with the improvement we are seeing here. JetCard - our pay-as-you-go card for private jets - has also achieved a record number of card holders in the first half and has tremendous growth opportunities. Another highlight has been the acquisition of two businesses which we are really excited about - Cabot Aviation, the aircraft remarketing broker we acquired in May, and Baines Simmons, the aviation safety performance improvement consultancy we acquired in August. These acquisitions are integral to our strategy as we look to extend our products and service capabilities and improve our earnings streams.

Can you tell us a bit more about these businesses?

Cabot is a world-leading aircraft remarketing company, selling and leasing aircraft that airlines and other aircraft owners are either not using or don’t want. They also advise clients on the acquisition of aircraft and their fleet management process. Cabot adds significant aircraft sales and dry lease expertise to our pre-existing remarketing operations, which were predominantly in the short-term wet lease market. Baines Simmons is the world leader in Aviation Safety Consulting, specialising in aviation regulation, compliance and safety management. They help to advance best practice, shape safety thinking and drive continuous improvement to safety performance through their three service offerings: consulting, training and outsourced services. They are a trusted advisor to more than 750 businesses and organisations, including the armed forces, governments, MNCs and regulators across all sectors of aviation. Baines Simmons extends Air Partner’s client services and product capabilities, while complementing and enhancing its existing broking business.

What attracted you to these particular businesses?

The key elements were people, brand, capability, market and economic returns. Both businesses are leaders in their fields with world recognised brands, strong reputations and some very impressive people. Both Cabot and Baines have organic growth opportunities that we can help them capture, and we are always looking to extend and enhance our products and services for our customers. There is low visibility in broking and these businesses fit with the Group’s strategy to establish more stable and visible revenue streams that complement our existing activities.

How has the integration of Cabot Aviation gone so far?

The Cabot team relocated into our Gatwick HQ shortly after the transaction completed in mid-May and so the functional part of the integration happened quickly and seamlessly. There are already examples of Cabot benefitting from existing Air Partner supplier relationships, and it is looking extremely promising for the future. Cabot is also benefitting from being part of a fully-listed plc - and that’s our strategy in action. The transparency and profile of being a listed company means a great deal to customers worldwide; it is a real differentiator.

Are you looking at any other acquisitions? If so, what kind of businesses?

We always look at opportunities which will add value to our business and are a good use of our capital, as is our duty to our shareholders. We would never comment on specific targets but we are always interested in companies whose products, services and capabilities can enhance our overall customer proposition and, at the right price and at the right time, we would consider them. However, a lot has happened in the past six months and we need to ensure that we are on the right path to capture and develop the benefits from Cabot and Baines Simmons before we immediately consider anything else.

Baines Simmons is a different proposition to Air Partner's current activities. Are you looking to move away from broking, which has traditionally been your core service offering?

Not at all. We have embarked upon a ‘Customer First’ programme which will play an important part in the sustainable growth of our broking operations. Broking is, and always has been, a fragmented industry but we know that we can take a greater share. However, there is no getting away from the fact that it is lumpy and lacks visibility, which is why we have acted to diversify our revenue streams by acquiring complementary businesses which enhance our service proposition.

Are you seeing any synergies between Air Partner and Baines Simmons?

Yes. One example would be the bespoke safety and airworthiness audits and assessment services that Baines now offers Air Partner’s Oil & Gas clients - a first for the offshore charter jet industry. This arrangement provides our clients with the reassurance that the unique demands posed by working in the offshore oil industry can be met seamlessly. We recently attended Offshore Europe in Aberdeen and received great feedback on this.

Can you tell us any more about your Customer First programme?

The Customer First initiative is all about getting closer to our customers and better understanding their needs, which will enable us to further enhance the customer experience when using Air Partner. The programme came about as part of an extensive customer feedback exercise which was undertaken throughout 2014. We wanted to understand what really mattered to them, what they wanted and what they expected from Air Partner, so we could make sure that we delivered this to them. What is the focus for H2? Going forward we hope to build on the momentum generated in the first half - keeping the broking business humming, while also working to ensure the continued integration of Cabot and Baines Simmons into the Group. Customer First will continue to be a main priority as we further embed this into the day-today running of the business.

Where do you see Air Partner in three years' time?

That is a very difficult question to answer in our industry as things move on so quickly. However, our strategy is to build a world class aviation services group which delivers comprehensive aviation solutions to our global customers. To achieve this, we need to make sure that our existing assets work better and smarter. I have no doubt that Air Partner will be a better organisation in three years’ time; there is always more we can do to make sure we go that extra mile and provide an unrivalled service to our customers."

Founded in 1961, Air Partner is a global aviation services group that provides worldwide solutions to industry, commerce, governments and private individuals. The company is headquartered alongside Gatwick airport in the UK and operates 24/7 year-round and has 20 offices globally. Air Partner is listed on the London Stock Exchange (AIR) and is also ISO 9001:2008 compliant for commercial airline and private jet solutions worldwide.

©BlueSky Business Aviation News | 24th September 2015 | Issue #337

.

BlueSky - your weekly business and executive aviation news - every Thursday

.