BBA Aviation doesn't make the planes, but it does keep them flying. The aviation services company provides flight and aftermarket support systems and services to business and general aviation (B&GA), commercial, and military markets. B&GA generates two-thirds of BBA's revenue. Its Flight Support services include refueling, de-icing, baggage handling through Signature Flight Support and ASIG. BBA's Aftermarket Services & Systems' subsidiaries include Engine Repair & Overhaul (ERO), Legacy Support, and APPH (manufactures, designs, engineers, and maintains landing gears and hydraulic systems for jets and rotorcraft). Although the company has operations across the globe, the US generates more than 75% of sales.
After experiencing a big drop in revenues in 2009 which it attributed to the poor economic climate, BBA Aviation has pulled its nose up and has returned consistent growth over the last few years. BBA has built its performance by improving and streamlining operations and focusing on organic growth to best take advantage of the opportunities presented as the economy recovers. The focus on organic growth notwithstanding BBA has made a number of acquisitions in both its flight support and aftermarket businesses. The fact the company's businesses cover both commercial and military markets, has also helps mitigate losses in the event that one of the sectors experiences a market downturn.
With the US and UK governments cutting their defense spending, and promising to continue the practice over the next few years, BBA Aviation's military business is expecting to see a rise in demand for aviation support that will extend the service life of selected defense platforms, and support outsourcing and supply chain services. This need increases demand for the company's aftermarket components, systems, and services.
To meet demand, the company is expanding its Aftermarket Services and Systems business. Its Ontic division, a part of Legacy Support (offering OEM-licensed legacy products), acquired GE Aviation Systems' legacy fuel measurement operations for $62.5 million in 2010. The bolt-on business assembles, overhauls, and sells fuel gauging and measurement systems to defense and commercial airframe OEMs, air frame operators, and tier-one suppliers. With platforms that include the Airbus A319/320, Boeing 777, Eurofighter Typhoon, AW101, and Hawk2, BBA Aviation Legacy Support anticipates a significant increase in its commercial aviation customer base.
The company's Flight Support Business, which primarily supports commercial aviation, is on a positive trajectory. Signature Flight Support is its flagship revenue engine and manages one the world's largest FBO networks -- more than 100 locations worldwide -- providing refueling, hangar and office rentals, as well as technical services. ASIG is an independent refueler providing services at more than 70 domestic and international airports. It also provides ground support services to commercial airlines, including baggage handling. In 2011 the company added nine FBO's FBO lineup adding to the company's previous acquisitions. – less