Private Investment Companies
While at NBAA last week, it struck me the growing number of aviation companies that have been purchased and sold by private investment companies. I have seen quite a few companies go through these types of acquisitions in the seven years I have been with AMT. It is sometimes difficult to keep up with who owns what company.
I often speak with with the companys’ public relations folks during these acquisitions. They tell me “this is a positive step forward for the company” or “these investors are in it for the long run.”
But how do these acquisitions affect the aircraft maintenance professionals who actually perform the work? If you have gone through one of these transitions, how has it affected you and your fellow aircraft mechanics?
I have heard one side of the story. Is there another side of the story that needs to be told?
Private investment acquisitions in aviation — good, bad, or ugly?
Thanks for the feedback,
Joe Escobar
[…] admin wrote an interesting post today on Private Investment CompaniesHere’s a quick excerpt […]
If you look hard enough, you will find the folks that just sold out said the same thing when they bought it.
I believe that over the next 24 months, this issue is going to warrant a serious review by various regulatory agencies around the globe. The recent trend of acquisitions by investment groups has potentially far reaching consequences for aircraft operators IF the investment groups aren’t able to slice dice and fillet their acquisitions into profitability. They didn’t buy those MRO’s to run quality maintenance firms, their sole purpose is to make a buck. Most of the MRO’s couldn’t even come close to profitability, and if the new owners can’t turn it around (in part by increasing prices), who is going to do the maintenance when the MRO closes the hangar doors?