How to choose the best aviation services management company for your needs.The aviation industry is continuing to expand internationally, and all stakeholders and investors are looking for ways to participate in this growing market.
The aviation industry is continuing to expand internationally, and all stakeholders and investors are looking for ways to participate in this growing market. Commercial carriers, Fixed Base Operators (FBOs), Maintenance Repair and Overhaul (MRO) providers and Aircraft Charter and Management (ACM) companies often need assistance with corporate management and executive oversight. Using a professional management company brings industry leading best practices and training programs to financial investors such as private equity firms, family offices and other financial institutions.
Thankfully, there are companies that specialize in property, corporate and aviation services management, and some of them are experienced in airport facility management services, as well. What do you need to consider when choosing an aviation management company? We have listed a few areas below for help.
1. Diligence the company. Aviation management companies are all about offering industry best practices, and for that, you need a company that understands the aviation industry to the core. They must have an illustrative background, which should be inclusive of as many services as possible. The breadth and depth of the company’s capabilities will be a key indicator of their industry knowledge.
2. Experience matters. Discuss prior experience with the principals of the company in great detail. The company should be able to show you how it has managed and performed through various industry and economic cycles across all lines of business—FBO, MRO and ACM. With real expertise and exposure, you can be assured of getting dedicated services with a focus on specific brand and company goals.
3. Find more about their clients. Who are their clients? What types of owners has the management company previously worked for? These are just some of the basic questions that you must ask while selecting services for aviation management. Management companies who have worked under the rigor and discipline of private equity ownership provide the most impactful and efficient operations in aviation management.
4. Pricing isn't everything. Of course, professional management has a cost, but proven management delivers value. A company should strive to meet it investors’ goals and provide them with customized service which maximizes transparency and communication.
5. Talk about other things. If a company has experience in other areas of aviation, such as aircraft sales, or completions and modifications, it can be a significant advantage. A firm that understands and works in aviation in all areas at the ground level can assure better understanding across business lines.
While many companies may advertise aviation services management, few have deep experience in the field at an executive level through varying economic cycles. Fewer still have decades of experience working for institutional investors such as private equity firms in the aviation industry. Choose a company whose principals have deep experience and can provide multiple private equity references.
Management Company, Aviation Industry, Private Equity, Aviation Management