The merger of Luxaviation and ExecuJet just over two years ago pushed the combined group high up the rankings of global business aviation service groups. It also represented the sort of consolidation that Luxaviation CEO Patrick Hansen argues has been sorely lacking in what he considers to be a very inefficient industry weakened by fragmentation.
Over the past 12 months the integration of the Luxaviation and ExecuJet businesses has taken large leaps forward with moves such as the creation of a new central operations support department at its facility in Cambridge, UK. This oversees all aspects of CAMO cover, flight dispatch, crew training, management, travel coordination for the group’s entire fleet and flight crew.
“Following our integration with ExecuJet, the former shared services department grew to provide services for most of the group’s entities,” explained central operations support director Stuart Williamson. “The department provides a consistent level of service excellence supporting most aircraft in the Luxaviation Group’s fleet. The transition to central operations support now enables us to provide a team of more than 90 staff who manage a much higher number of aircraft. We are looking forward to bringing on additional team members who can manage a large, international organization.”
The company also now has a group broker desk that handles charter sales for the aircraft it operates worldwide. This part of the operation is supported by satellite offices in locations such as Miami, Hong Kong and Moscow.
“We continue to develop our relationships with brokers and clients, supported by our colleagues in the group’s global charter offices,” said group broker desk head Chris Watson.
Hansen told AIN he is pleased with the progress made integrating Luxaviation and ExecuJet, pointing out that this is a complex task involving important safety considerations and complex equipment. “The central operations support department has added a layer of efficiency and standardization,” he said. “And this, and the new group broker desk, has helped us to provide a consistently good level of service. But we’re not aiming for complete uniformity because the service delivered depends on who is the client. The business model of black cab is to be the black cab, but our business model is to manage the complex differences between what clients want.”
Pressed on the state of the business aviation sector, Hansen commented: “The market is still completely irrational and stupid. Aircraft management and charter are really low margin businesses and when I look at the profit-and-loss [statements] for the companies I’ve bought and those I haven’t bought it just isn’t possible to understand. So many people are still in this business simply because it is their passion.”
Also likely to arise passions is the vexed issues of the UK’s Brexit departure from the European Union in 2019 and what this will mean for business aviation. The topic will be addressed in an EBACE panel discussion at 10.30 a.m. on Tuesday, May 23 (Hall 3 Room Q) that will include Luxaviation UK CEO Patrick Margetson-Rushmore among its speakers. He is also in a panel discussion on the state of the industry at 2.15 p.m. today (Hall 3 Room Q).
According to Hansen, no one in the industry can accurately foresee what consequences Brexit may have. “But I am ready for whatever comes,” he concluded. “I have AOCs in the European Union, in the UK and elsewhere so whatever happens we will deal with because we are a mobile business.”
