| In February 2007, STAR completed the acquisition of a majority stake in General Electric Commercial Aviation Training ("GECAT") from GE; and the entire share capital of SAS Flight Academy ("Flight Academy") from SAS AB ("SAS"). In June 2007 a pilot training school, Oxford Aviation Training, was acquired from BBA Aviation plc and in December 2007 the Manchester Training Centre was acquired from BAE Systems. The group has been rebranded Oxford Aviation Academy ("OAA"). GE retained a significant equity stake in the business of just under 20 percent and, through a marketing alliance agreement with GE commercial Aviation Services, will work with the merged business to assist it with future development plans.
In July 2008, the world's leading supplier of personnel solutions to the aviation industry, Parc Aviation was acquired to create the third business division, resourcing, along side ab initio and type training in the OAA group. In September 2008, the leading ab initio airline pilot training organisation in Australia, General Flying Services was acquired to expand the scale of the ab initio business.
Oxford Aviation Academy is the world's leading independent provider of aviation training, personnel solutions and technical support services. OAA offers JAA approved aviation training from ab initio through to type rating including base and line training. Cabin Crew and EASA 147 approved Engineering training are also provided by the Academy. The recent acquisition of Parc Aviation adds aviation resourcing and technical support services to the Group portfolio. OAA operates from 16 cities with 12 training centres across the globe: Beijing, Copenhagen, Dublin Hong Kong, London (Gatwick), London (Heathrow), Manchester, Melbourne, Oslo, Oxford, Phoenix, Riga, Shannon, Stockholm and Tokyo.
The world's aircraft fleet is expected to double in the next 20 years: this, combined with factors such as pilot retirements, is expected to create a requirement for c. 17,000 new pilots per annum. Further, an increased reliance on simulator-based training for new pilots, and the trend towards airlines outsourcing their training requirements is likely to lead to a number of growth opportunities for OAA under STAR's ownership.
Why does Oxford fit STAR's investment strategy?
- OAA's service offering directly reflects STAR's strategy of providing outsourced solutions for a company's non-core and capital-intensive activity.
- Aviation training is a regulatory-driven requirement and as such the business should generate stable cash flows, with limited exposure to the traditional aviation cycle.
- OAA is run by a strong and experienced management team.
- The combination of the various businesses creates an opportunity
to create value through synergies.
http://www.oaa.com
 
|
|
|
