Business and General Aviation (88% of Group revenue)

B&GA covers thousands of aircraft large and small, outside the commercial and military aircraft fleets, serving a wide variety of private, business, utility and public service roles. Worldwide there are more than 21,000 jets, 15,000 turboprops and 24,000 turbine civil helicopters in operation classified as B&GA aircraft. Signature primarily provides flight support and line maintenance services to business and private aircraft in this segment and Ontic and ERO provide aftermarket technical services and licensed products for a broad range of jet, turboprop and helicopter platforms.

Private and business travel using B&GA aircraft is a productivity and efficiency tool, particularly in North America where there are significant distances between large populations and a lack of efficient intermodal alternatives in other travel sectors. 65% of the world’s business jets and turboprops are based in North America and it is BBA Aviation’s key focus. In all regions, customers value a consistent, high quality flight support offer to aid their journey.

B&GA flight hours and aircraft movements are key drivers for Signature and for ERO. Increased activity, measured in the US by the FAA and in Europe by Eurocontrol, means more arrivals and departures and a higher uptake of fuel and other services across Signature’s global network, and a greater number of engine and other technical service events driven by increased aircraft usage.

The US B&GA market has attractive growth characteristics that are both cyclical and structural in nature. B&GA travel is driven by corporate confidence and wealth creation with a long-term through-cycle correlation to US GDP. More broadly, new business aircraft deliveries in addition to pricing and demand in the second-hand market, indicate the longer-term health of the market.

The US market remains approximately 15% off its peak activity levels, giving scope for B&GA market recovery as well as long-term structural growth in flying hours.

Commercial and Military Aviation (7% and 5% of Group revenue)

Much like the B&GA market, demand for BBA Aviation’s services in both the commercial and military aviation markets is principally driven by flight activity. For Ontic, factors supporting the life extension of existing platforms, such as the age of the fleet and military spend, come into play.