Increased business and general aviation operations in the U.S. helped push up Signature Flight Support’s FBO revenue by 12.4 percent in 2018, contributing to the overall 24.4 percent jump in revenue for parent BBA Aviation. The parent organization also benefited from the additions of Epic and Firstmark, along with increased Ontic license acquisitions.
Signature’s FBO business brought in $1.76 billion in 2018, making up 75 percent of the $2.35 billion in revenue of BBA Aviation. The FBO chain benefited from a 9 percent improvement in U.S. business and general aviation movements in 2018, BBA noted, adding, “We continue to believe the U.S. B&GA market is a long-term structural growth market.” However, at the same time, BBA expressed concerned about a “short-term disconnect” currently ongoing that reflects a decline in business confidence and is reducing discretionary flying.
Signature’s FBO profits were down 1.9 percent to $315.7 million on the year, which BBA attributed to previously announced investments in commercial technology to enhance customer service and support revenue optimization. Even so, Signature still posted a 17.9 percent margin.
Its TechnicAir MRO operation saw organic revenues decline 3.4 percent to $74.1 million with a 50.7 percent drop in profit to $3.7 million. BBA cited “the availability of skilled technicians,” along with lower repair activity on a key maintenance account to this decline. Meanwhile, Epic contributed $292.5 million in revenues and a $2.9 million operating profit during its first six months of ownership under the Signature umbrella.
Signature continued its expansive growth in 2018, not only through the Epic acquisition but with an agreement to acquire St. Thomas Jet Center and the opening of new terminals. The FBO network now spans 196 locations, including 18 Signature Select franchises. Its reach further expanded through Epic, which added 202 privately owned, Epic-branded FBOs and another 121 unbranded locations.
BBA said moving forward, Signature is eying further development of its non-fuel services through the Signature/Epic card services program, as well as on its Elite Class commercial passenger interconnect services.