Gama Aviation went public in 2014 when it acquired Hangar8 which was already listed on London’s Alternative Investment Market. In theory, the reverse takeover gave the company access to more capital for acquisitions. At the time, Gama Aviation was managing all of Wheels Up’s King Air flights and the merged company had almost 150 aircraft under management. (It later sold its share of its US aircraft management business to Wheels Up.)

Many listed company CEOs believe that the market does not truly understand or value their business. But Khalek was able to prove this last year when Gama Aviation sold Jet East, its fast-growing US maintenance business. Jet East made up a third of Gama Aviation. At the time Gama Aviation had a market capitalisation of about £60m.

In November Gama Aviation sold West Star for $131m (netting $100m). Steve Maiden, who led the fast growth of Jet East, was this week appointed CEO of West Star.

Some of the cash from this sale has been used to take Gama Aviation private. Perhaps surprisingly a significant number of investors have chosen to keep their shares even though they are no longer easily tradable. One high-profile UK investor bought 2% of Gama Aviation after the de-listing was announced. 

Khalek is excited to be back running a private company. He estimates that between 25% and 40% of his work life has been taken up by the demands of being listed.  Now freed up, he wants to grow Gama Aviation. “I am not sure everyone in the business is as excited that I will have more time,” he jokes.

Gama Aviation is looking to grow its FBO business. It has just completed a parking apron at Sharjah Airport, near Dubai, and is now starting on a new 14,000 sqm hangar and FBO due to open next year. The company is working through planning for its Jersey FBO in the Channel Islands. 

It has also hired Graham Williamson, formerly of ACASS Europe and TAG Aviation, to grow its aircraft management business. Williamson, who has been a competitor of Gama Aviation for many years, likes growing companies. He was at Emirates Airlines when it had three aircraft.

“It is exciting when you are growing and the opportunity for Gama Aviation is huge,” says Williamson.

Gama Aviation is in talks to buy Austrian operator Tyrolean Jet Services (one of its last stock exchange announcements was on this deal). Tyrolean Jet Services was the first Austrian business jet operator.

“We want to create bespoke operations in different locations like Four Seasons does with hotels”

“We want to create bespoke operations in different locations like Four Seasons does with hotels,” says Williamson. “We want to develop local presence in combination with our engine room in Farnborough. We want to provide great service, great product and be more focused on small numbers of highly bespoke clients.”

Khalek says it is not about trying to build one global operator. “One of the reasons that consolidation is tough is that aircraft management is a very personal business. You don’t want to grow into a big monster chain, you want guests to feel that they are staying at a boutique hotel where everyone knows their name.”

It is looking to build a series of small management companies – with no more than 25 aircraft – with local management. Gama Aviation believes that it can get economies of scale in back-office functions like finance, trip planning, maintenance and purchasing. Khalek adds another simile: “It is like a Michelin Star restaurant – you want a unique maitre d’ but the kitchen needs to be producing a consistently strong product.”

Khalek never hid his frustrations with running a public company (including to the Wheels Up team before they floated). He is clearly excited about the freedom the business now has. “We have all been weighed down with regulatory issues, things like Brexit, Covid, supply chain issues and others,” he says. “We need to shake ourselves out of this and go back to why people go into this industry. People do it because they love it and they are passionate about it. We need to remember how enjoyable this industry is.”

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The sense of enthusiasm was palpable among the 120 delegates in attendance at Adare Manor, County Clare for the Irish Business and General Aviation Association’s (IGBAA) first annual conference. Ultra-luxe tourism, aircraft registration, sustainable aviation fuel (SAF) and the potential for an AAM ecosystem linking Dublin and Shannon were among the topics discussed.

Minister of State at the Department of Transport, Hildegarde Naughton kicked off the day. “Research in 2020 confirmed while Ireland has a strong offering, it is only attracting a fraction of the luxury tourism sector,” she said. “Ireland is also regarded as one of the top EU locations to do business. We are home to hundreds of overseas companies that employs thousands of people. These companies are a natural market for business aviation.”

Naughton highlighted Ireland’s “thriving” aviation sector now active for many decades thanks to its link to transatlantic travel. Ireland was first country outside the Americas to begin pre-clearing customs for the US.

“Over 50 aircraft leasing companies are based in Ireland,” said Naughton. “We also have well developed services in MRO.”

Graham Williamson, president, ACASS Ireland, who set up the firm in the wake of Brexit, said Ireland enabled him to build a sustainable business aviation business.“When Britain left the EU, I left Britain. For me the heart of business aviation is in Europe and Ireland is at the heart of Europe, so that’s why I’m here,” he said. “It’s English speaking, English law, but you are in Europe.”

People asked Williamson: What’s your exit strategy for the market? “There is none, I’d like this to last for 50 years. I’ll come and go and it will continue to create valuable jobs in this part of the world. It is not aircraft for the Kardashians our first aircraft was for Colombian miners, we’ve done vaccines, EU delegations, air ambulance.”

Josh Stewart chairman IBGAA agreed.“We lead in so many ways, but we are missing a lot of the business aviation ecosystem. Let’s put Ireland on the map we thought. In the European market business aviation was almost a €90bn driver last year. In Ireland that was about €1bn – there is progress to be made,” said Stewart.

Future technologies, against the backdrop of the recently-launched Future Mobility Campus Ireland, featured throughout the day’s panel discussions.

“The establishment of the Future Mobility Campus Ireland puts Ireland of the cutting edge of new aviation technology,” said Naughton.

Business aviation will lead the way on sustainable technology adoption, according to Robert Baltus, chief operating officer, EBAA. “You will not see airlines flying electric in the coming years but you will see business aviation doing it. That’s because we innovate in this space.”

Last year, Future Mobility Campus Ireland conducted beyond-line-of-visual-sight flights at the Shannon Airport testbed. Campus CEO and co-founder, Russel Vickers said: “We are building gigawatts of renewable energy on the west coast of Ireland. How can we channel that into sustainable aviation? We are quite poor on the infrastructure side over here on the west coast. All roads lead to Dublin –well, all the good roads anyway.”

Vickers outlined plans to establish an AAM ecosystem, whereby transport hubs and urban centres could be linked by air taxi on Ireland’s west coast and across to Dublin in the east.

SAF fuelled conversation in one of the afternoon sessions. Sustainable fuel is about getting back to mother nature and restoring the carbon balance in the atmosphere, according to Alder Fuels, president and CEO, Bryan Sherbacow.

“There are certain transport modes that will no longer need liquid fuels, because of renewables. Aviation is not one of those modes, for the near-term the only way to decarbonise aviation will be through decarbonising the liquid fuels it uses,” said Sherbacow.

Moderating the aircraft registration panel, Aoife O’Sullivan, partner, The Air Law Firm, summed up best what Irish business aviation needs to do. ““I call it the Isle of Man example. They came out of nowhere in 2007,” said O’Sullivan. “The market is there but you need to work hard and chase it.”

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We are becoming accustomed to headlines confident of the industry’s ongoing recovery. It is true that European activity is up 70% since the beginning of June and in the US 20%, according to WINGX data. Operators are benefitting from an influx of new customers, not just window shopping, now flying private. PrivateFly has seen a switch from a traditional 25:75 new and returning client split to now seeing 65% in new custom. Also, FlyVictor told Corporate Jet Investor it has seen a 35-40% rise in new clients, a first for the company.

The question remains, how sustainable can the market be in its current state? Adam Twidell, CEO, PrivateFly told Corporate Jet Investor not very. “Those [operators] that are flexible are doing well. There has been a price war taking place. Some aircraft operators are just not prepared to lower their price and others are.”

He believes capturing new customers will be pivotal in giving an easier ride the challenging market conditions, which lie ahead. “There is no industry averaging going on, it is very lumpy, some operators are flying at near normal levels whilst others are virtually grounded. The danger sign is when an operator needs to fly for cash flow. It’s clearly not sustainable unless an aircraft owner is happy to fly at cost or just under.”

Justin Bowman, CEO, Air Charter Service (ACS), too has fears over the sustainability of current trends emerging within charter. While hopeful that new customers are here to stay, on the flip side he said there is pent up demand from existing clients being felt at present.

Bowman told CJI he had seen prices dropping in May: “Rates were lower than they were usually and that was because there was an element of desperation amongst some operators – paying for crews, paying for airplanes, for finance – to get some contribution to their costs. Particularly we saw in North America, some of the operators that we would normally consider to be at the upper end of the price spectrum were offering much more reasonable prices, because with large fleets they were just desperate to bring cash in the door.”

Bowman continued: “But as we have gone into June the market has been clearly strengthening in Europe and North America. That over supply which we saw in May which drove the prices down has now almost dissipated and I would say prices are, broadly speaking, now at what I would call a normal level.”

A silver lining is illuminating in the ultra-long range division, however. Steve Varsano told last week’s CJI Town Hall meeting that corporates were not flying private and this was impacting the industry’s recovery. Yet some organisations, such as mining and oil companies, cannot simply download Zoom and work from home.

Graham Williamson, president, ACASS Ireland, which only received its AOC in mid-April, told CJI the company’s average sector length for a Challenger 605 is four hours and 20 minutes when he would assume it to be around the three-hour mark. “We are going down to Ghana, to Mauritania, we are going to India, Cancun and Colombia. Virtually all of those are moving essential staff for corporates. So, niche we have fallen into as with the demise of scheduled services we are being exposed to new potential business and that clearly is a long term benefit I think.”

The caveat however, Williamson said, is that operators with smaller fleets will find it easier, but you still have to be creative and utilise the relationships you have within the industry in order to thrive.

In terms of the sustainability of lower pricing Williamson said it depends how low you go but it cannot be sustainable in the long term. He said operators now flying to ensure cash flow can do so in the short term. “If you were to start today with an aircraft for charter and you did [£]400,000 in revenue then you wouldn’t actually start spending that money until the following month [when the bills come in]. In other words, keeping cash flow going is probably quite important to those operators with bigger fleets. When the music stops, it’s going to get tough. There could come a month where you didn’t get the revenue you need but you’re paying all of last month’s bills when you did a lot of flying

“And that is going to be October or November. So, what you do now is just accrue, don’t spend and wait for a rainy day, which I’m sure they will be.”

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ACASS Ireland offers charter and private and commercial aircraft management solutions in the UK and throughout Europe from its bases at Shannon Airport, Ireland, and Farnborough in the UK. As an Irish Air Operator’s Certificate (AOC) holder, the company can provide free circulation and unfettered traffic rights throughout Europe and the 44 countries covered by EU bilateral agreements, including the US and Canada.

ACASS Ireland President Graham Williamson told Corporate Jet Investor that ACASS Ireland can offer two components that complement the other ACASS products and services. “Ireland adds a fully Commercial AOC in Europe that can manage aircraft for HNWI [High Net Worth Individuals] and corporate clients who need European registration under an EASA certificate,” said Williamson.

“In addition, the ACASS Ireland team is highly focused on the charter market, our first aircraft are 100% available for third party charter. While ACASS’s existing business processes and infrastructure, perfected over 25 years of delivering business aviation support services, offers ACASS Ireland every resource to answer any client need they might encounter.”

Bombardier Challenger 605

The company was launched with an initial London-based Bombardier Challenger 605 (EJ-AWES) and has already conducted repatriation charter flights to numerous locations. “Covid-19 measures diminish every day and we are seeing good forward bookings into June and July and beyond,” said Williamson. “We believe business aviation is looking to be the smart option for the rest of the year. ACASS Ireland will be introducing a second Challenger 605 [EJ-ROXY], also on the Irish register, in early July, also fully available for charter based in the UK.”

The ACASS Group was a significant shareholder in SONAS Aviation from its inception and the shareholding remains unchanged. SONAS Aviation has now been combined with ACASS Ireland and is a fully integrated part of the global ACASS group. The management team of ACASS Ireland  includes: Russell Allchorne, chief operating officer and director of Flight Operations; Keith Brennan, technical director; Andrew Hodgson, commercial director; Patricia Davis, director of Compliance and Safety.

‘Expands our charter capabilities’

Andre Khury, ACASS CEO, said the formation of ACASS Ireland marked the culmination of nearly two years of planning. “ACASS Ireland is a major milestone for us in several ways,” said Khury. “First, it builds on our already strong physical presence in Europe. Second, it exponentially expands our charter capabilities. And, finally, it allows us to offer our clients very flexible management options in a post-Brexit world.” ACASS already does business in Europe and offers clients the benefits of San Marino commercial registration, said Khury.

Williamson added: “We recognise this is a challenging time for our industry and most of the world. But now more than ever, private aviation users need options and support they can depend on. ACASS Ireland can deliver the comprehensive bespoke solutions and the same highly experienced team SONAS was known for with the peace of mind and resources of a global leader like ACASS.” 

 Graham Williamson, ACASS Ireland President, (left) is pictured with Andre Khury,  ACASS CEO.

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With its first managed aircraft, a Bombardier Challenger 605, to be available for charter on the new EJ-register, Graham will be at Corporate Jet Investor’s London conference next week to meet with financiers and G-registration aircraft operators.

“We are reaching out to owners of corporate jets seeking predictability, stability and continuity in these uncertain times,” says Graham. “The impact of Brexit – deal, no deal, interminable status quo, political uncertainty and its subsequent effects on the aviation community in the United Kingdom is a real and immediate issue.”

SONAS Aviation is duly offering aircraft owners a simple transition for their aircraft to an EASA Operation, allowing free movement in Europe and unfettered traffic rights to the 44 countries covered by EU bilateral agreements, including the USA and Canada.

“Looking at EASA’s newly updated Guidance Notes, it is difficult to predict how aircraft operated, crewed, registered, maintained or managed from the UK will be affected, and this throws up uncertainty regarding importation, free circulation, certification and licensing,” says Graham. “Ireland (with its EJ registry) offers a simple importation and tax environment for owners.  It is a renowned and secure legal jurisdiction for financiers and the Irish Aviation Authority (IAA) is committed to developing and growing its already strong aviation sector.”

“Some of the currently fashionable and established European jurisdictions, such as Malta, are struggling to keep up with the volume of aircraft coming onto their registries,” suggests Graham.

An alternative jurisdiction, so close to the UK, with an excellent legal, finance and banking fraternity will add to the EJ appeal, he believes.

New company with established management team

While SONAS Aviation is brand new, behind it sits a management team with decades of aviation experience.

Graham has been joined by Russell Allchorne, former VP Operations at TAG Aviation Europe as the COO, and Keith Brennan, former Post Holder with Eirtech Aviation, as Airworthiness Director. SONAS is supported by the Air Law Firm and its Founding Partner Aoife O’Sullivan, a widely regarded business aviation lawyer.

Leasing model key focus for SONAS

As well as traditional aircraft management, SONAS Aviation will be offering expertise to clients looking to lease, rather than ‘buy’ their corporate jets. “Where better to advocate this growing model than in Ireland, home to many established commercial aircraft leasing companies dedicated to the airline sector,”  highlights Graham.

Operator leases could become the biggest driver in business aviation, especially popular in the large cabin sector, which he will highlight whilst chairing a panel on day two (January 28^th) of CJI London ‘Dispelling corporate airliner myths – the cost of operations.’

“A lease offers predictable costs and gives the owner far greater flexibility to upgrade the jet, or change it in six years, just as the airlines do.  It removes the uncertainty of residual values and it is a smart way of financing a depreciating asset,” Graham will highlight.

SONAS Aviation is not seeking to grow into a large aircraft management company.  Rather, it wants to build a close relationship with select clients, build trust and deliver a quality, personal service, maintaining full transparency on costs.

Ahead of its operational start, drawing on lessons learned, SONAS and its primarily Irish team, has created seamless processes for all elements of planning, operations and customer service using harmonised cloud-based systems.

“We are committed to offering a simple and seamless transition for clients.  We will be limited in the number of aircraft we can absorb in the coming months.  First mover advantage is paramount and only those who take control and make the right choice today will be guaranteed continuity of operations, approvals and licences,” Graham concluded.

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He was president of the aircraft management and charter division having joined TAG Aviation in 2004 to launch the company in the UK. He moved to TAG Aviation after launching low-cost carrier GO Airlines in India and has worked for a number of airlines.

“I have loved working at TAG but my real love is growing new start-ups, I was at Emirates when it only had three aircraft and have been part of launch teams for a number of different operators.  When I joined TAG in the UK we were a team of 12 staff in a portacabin managing only three aircraft, within five years we had more than 40 aircraft under management.   I want one last adventure before I retire,” says Williamson. “The beauty of a start-up is that I have a blank piece of paper and can use everything I have learnt in the last 40 years, to create a bespoke operator.”

Williamson has dual UK-Irish nationality and is moving to Ireland.

Sonas – which is Gaelic for happiness – will be based at Shannon Airport in the west of Ireland.

“Ireland is an aviation hub but it is definitely not a flag of convenience. The Civil Aviation Authority is one of the most-highly respected in the world and I, and all of the post holders, will be based in Ireland,” says Williamson. “It is easy for people to take safety and standards for granted but we are looking to work with people who realise it is the absolute priority.”

Although it is not the main reason for the launch, Williamson also believes that Ireland could benefit from uncertainty over the UK’s leaving the European Union.

“We are not expecting to see hundreds of aircraft to move over straight away, but Ireland is very well positioned – it has free circulation, 76 Tax Treaties, similar regulations and laws to the UK – so could be a popular choice for owners of UK-registered aircraft when they are involved in future transactions.”

He says that other European jurisdictions are already reaching capacity. The Irish government is keen to encourage business aviation and launched a new business jet registry in 2015.  Although more than 700 commercial aircraft are registered in Ireland there is just one aircraft on the business jet registry and only a few business jet operators – including Westair Aviation and Air Link Airways.

Williamson stresses that he is not looking to grow Sonas Aviation into the biggest operator in Europe. “We genuinely do not want 50 aircraft. We want to be able to personalise our offering and have relationships with owners. We are also going to take our time,” he says. “We are not looking to add 10 aircraft in our first month.”

Sonas Aviation has already hired key safety and regulatory people to work with the Irish Civil Aviation Authority and hopes to receive its Aircraft Operator’s Certificate in 2019.

Williamson resigned from TAG Aviation in September and says that he hopes to work with them in the future.

“We cannot thank Graham enough for the dedication, passion, enthusiasm and motivation which he has brought to his role with TAG Aviation. He will be hugely missed by all the staff, Senior Management Team colleagues and fellow Board members,” said Daniel Christe, CEO of TAG Aviation Europe. “We will not forget Graham’s invaluable contribution and his inspired leadership and I would like to take this opportunity to wish him every success as his embarks upon an exciting new endeavour.”

Carlos Gomez, Chief Operating Officer for TAG Aviation UK, will replace Williamson as managing director.

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Graham Williamson has played a pivotal role in the development and success of TAG Aviation since he joined the organisation back in 2004 and has been catalyst to overseeing the delivery of many significant accomplishments throughout his fourteen years of dedicated service.

Commenting upon on Mr Williamson’s departure, Daniel Christe, CEO of TAG Aviation Europe said: “We cannot thank Graham enough for the dedication, passion, enthusiasm and motivation which he has brought to his role with TAG Aviation. He will be hugely missed by all the staff, Senior Management Team colleagues and fellow Board members. We will not forget Graham’s invaluable contribution and his inspired leadership and I would like to take this opportunity to wish him every success as he embarks upon an exciting new endeavour.”

In addressing fellow colleagues and staff members, Mr Williamson expressed his gratitude and good wishes to everyone at TAG Aviation saying, “I am very proud to have been part of the TAG family for the past fourteen years and I know that you will continue to set the standard for Business Aviation, well into the future. I may be embarking upon a new career challenge, but I will always hold the Spirit of TAG Aviation within my heart and continue to follow its core values of respect, excellence and integrity.”

In the coming weeks Carlos Gomez, Chief Operating Officer for TAG Aviation UK, will step up from his current position to assume the role of Managing Director and work in tangent with Williamson to ensure a smooth and seamless transfer of responsibilities. Gomez has led TAG Aviation’s Centres in both Spain and Asia and formed part of the leadership of TAG Aviation Europe for twelve years.

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Diamond status is the highest safety award to be presented by the EBAA to member companies operating business aircraft that surpass 50 years, or over 100,000 hours, of safe flying. Such recognition highlights TAG Aviation Europe’s ongoing commitment to making safety a number one priority.

“TAG Aviation is proud to once again receive this achievement for safety from the EBAA. Ensuring the safety and wellbeing of our customers is at the heart of what we do, alongside our diligent attention to security and safe operations which is embodied throughout the entire TAG culture”, said Graham Williamson, President Aircraft Management and Charter Services, TAG Aviation Europe. “We regularly review our safety processes both in the UK and in Geneva to ensure we are implementing best practice and encourage ongoing dialogue between our pilots, crews, operations staff and senior management teams.”

“The EBAA aims to promote the best practices in Safety in Business Aviation across Europe”, said Robert Baltus, Chief Operating Officer, European Business Aviation Association. “Ultimately we see safety as the number one priority in our business and it stands at the core of what the EBAA represents. Therefore, the EBAA is delighted to recognise the efforts of TAG Aviation, crossing the 100,000 accident-free hours mark is a milestone in itself. We wish TAG many more safe flight-hours in the future.”

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By engaging TAG Aviation, aircraft owners can delegate their operational responsibility and accountability to TAG Aviation giving a seemless transition to Part-NCC with no lengthy delays, disruption or change to their day today schedules.

“If an aircraft is not operated by an established operator with the necessary infrastructure and systems in place, legal responsibility for the safe and proper operation of the aircraft defaults to the owner who must ensure that the aircraft is now operated to the required Part-NCC standards.”

“If an aircraft is not operated by an established operator with the necessary infrastructure and systems in place, legal responsibility for the safe and proper operation of the aircraft defaults to the owner who must ensure that the aircraft is now operated to the required Part-NCC standards,” said Graham Williamson, president, Aircraft Management and Charter Services, TAG Aviation Europe. “TAG’s unique proposition provides owners with the complete piece of mind that their aircraft will continue to be operated to the highest standards of safety and airworthiness, whilst meeting the regulatory requirements of the European law and of the State of Registry.”

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Minakov has over thirty years’ charter and operations experience and a network of contacts within the Russian aviation market.

“At such an important time in TAG’s evolution globally I am delighted to be joining the organisation to fulfill such an exciting new role and advance TAG Aviation’s expansion within the Russian aviation market. I look forward to future working collaborations with TAG’s European senior management team and establishing strong working relationships with TAG colleagues in Moscow, in addition to focusing on actively advancing new business associations and opportunities within the region.” said Minakov

“At such an important time in TAG’s evolution globally I am delighted to be joining the organisation to fulfill such an exciting new role and advance TAG Aviation’s expansion within the Russian aviation market.”

http://192.168.192.229/corporate-live/articles/tag-aviation-geneva-adds-second-gulfstream-g200-to-charter-fleet-120

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