Jet Aviation For Sale?

Jet Aviation ribbon-cutting at Biggin Hill.

Switzerland's Hirschmann Industrial Ltd, the parent company of Jet Aviation, is holding talks with Goldman Sachs about "strategic options" for the aviation services giant, a Jet Aviation spokesman confirmed on the eve of EBACE.

A new corporate partner appears likeliest, and would in all likelihood take a portion or all of the Jet Aviation equity now owned 100% by Zug-based Hirschmann Industrial.

The privately-held company needs more capital for future expansion, and the "strategic options" will address this need. While taking Jet Aviation public could be one option, the current environment is not the healthiest for an initial public offering of stock.

"We are probably one of the healthiest companies in our industry but have limited options to grow as a private company," the spokesman said. Jet Aviation is to report tomorrow the second best financial results in its 35-year history, demonstrating how its diversification into different areas of business aviation has helped it weather economic downturns.

"Jet's been quietly for sale for some time," comments one industry man, who says the Hirschmann family especially would like to cash out. He also reports industry buzz to the effect that Gulfstream Aerospace is looking to pick up Jet Aviation's maintenance operations. The company has 10 maintenance facilities in Britain, Germany and Switzerland, four in the U.S., and one in Singapore.

"No discussions with potential partners have been held," the Jet Aviation spokesman insists, stating that the work with Goldman Sachs is at the very early stages and that no announcements are expected soon.

Jet Aviation was established in 1967 and now boasts more than 3,500 employees at 60 locations in Europe, the U.S., in the Middle and Far East, and in South America. The company has more than 150 aircraft either managed or owned. It runs FBOs on four continents (including a two-decade old Geneva facility that's just moved into PrivatAir's new digs here) and performs completions of aircraft ranging from Bombardier Learjets up to and including the Boeing Business Jet. About 60% of Jet Aviation's business activity is in Europe.

Thomas M. Hirschmann is Jet Aviation chairman & CEO.